The factory system
Continental expansion
Commercial
agriculture
 Cheaper goods were
produced which increased
peoples’ standard of
living.
 Artisan skills were lost.
 Immigrants, women, and
children were exploited as
a labor source.
 Accumulation of wealth
widened.
 Thousands moved to
urban areas looking for
factory jobs.
 Social problems increased.
 Government protection of rights to inventions
 Government support for crucial developments in
transportation
 Development of corporations with limited liability
 An improved educational system
 Improved markets and cheap labor with the move
from farm to factory
 The Embargo and War of 1812 stimulating a need for
domestic manufactures
 Eli Whitney’s concept of interchangeable parts
 Samuel Slater’s mill
 Oliver Evan’s steam engine
 Increased immigration to provide cheap labor
 Government control over interstate commerce and
government protection of the sanctity of contracts
(or corporate charters)
 New sources of investment capital during War of
1812
 Stable currency under the Second Bank of the United
States
In the early years of
the nineteenth
century, government
policies disrupted
commerce with
foreign nations;
however, the
government, at the
same time, created a
climate that served as
a catalyst for early
industrialization.