Chapter 8 Section 1


Inventions and Innovations

Chapter 8 Section 1

Industrial Revolution

• A long term effort to increase production by using machines rather than the power of humans or animals

– Began in Britain in the


• Later spread to the U.S.

American inventions and new technologies that came about during the Industrial Revolution

• Steamboats, cotton gins, steam shovel, interchangeable parts, mechanized cotton mill, canning factory, internal combustion engine, electromagnet, etc…

Interchangeable Parts

• All parts of a product are made to an exact standard

– Products are no longer unique

Cotton Gin

• A machine that separates the seeds from raw cotton fibers

– 1 worker could now clean 1,000 pounds of cotton a day


• A license from the government giving an inventor the sole right to make, use, and sell an invention for a certain period of time

Market Revolution

• A change in the way

American made, bought, and sold goods

– More Americans were buying and selling goods, and borrowing and circulating money


• The use of machinery to make products

– Began in New England with use of water power


• A central factory where all the tasks involved in making a product were carried out

– Using this method, a

New England textile mill produced 4 million yards of cloth in 1817 and increased to 323 million yards in 1840

What are the advantages of a centralized production process?

• Dramatically increased production

• Brought great prosperity to the economy in the North

Free Enterprise System

• An economic system in which private companies compete for profits

– Also known as capitalism

• Rewards people who can find better, faster, and more efficient ways of running their business

– Encourages innovation and creating new industries, job and wealth


• A system in which a worker performs just one part of an entire production process

– Helped to maximize production

Investment Capital

• Money that business spends in hopes of future gain

– New equipment, new buildings, new workers, etc…

The effects of manufacturing and investment capital on the U.S. economy.

• Made more goods available for purchase so money became more widely used

• Producers of goods were not the people that sold them

• Items people used to make themselves were now available for purchase

Bank Note

• A piece of paper that banks issued to their customers

– People used bank notes to pay for goods and services

– Could be exchanged for specie (gold or silver)

• Business owners were making enough money to improve and expand their businesses

• Economy expanded

• New wealth created

How did banks help create economic growth?

• Provided money entrepreneurs needed to build new factories or expand existing facilities

• Loaned out money that depositors had placed in banks

– These loans would be paid back with interest

Innovations in transportation, and two in communication.

• Transportation

– Steam power

– New canals

– New and better roads

– railroads

• Communication

– Newspapers

– Magazines

– More post offices