U.S. History Chapter 3.4 Notes
Chapter 3.4: The Market Revolution
Objectives:
1. Describe the impact of new markets, entrepreneurs, and inventions on the 19th century American
economy.
2. Explain the way in which workplaces changed during the market revolution.
3. Summarize the efforts of workers to improve economic security.
Main Idea:
Inventions and economic developments in the early 19th century helped transform American society.
Why it Matters:
The market revolution and free enterprise system that took hold during this period still drive the
nation’s economy today.
The Market Revolution
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US Markets Expand
o People increasingly buy goods instead of making goods for self
o National growth in 1840’s was more than in the first 40 years of the century combined.
o Free enterprise-freedom of private businesses to operate competitively for profit with little gov’t regulationwas cause of SO MUCH GROWTH!
o Entrepreneurs-business men/new business owners-invested $$ in industries knowing that the risked losing
investments if venture failed, but huge profits is succeeded.
Inventions and Improvements
o Inventor-entrepreneurs developed goods to make life more comfortable for more people; others to make life
enjoyable, others to transform manufacturing, transportation, and communication.
o Samuel Morse (1837) patented telegraph
 sends messages using code over a wire in a matter of seconds
 Businesses used it to place orders and relay up-to-date information.
 Kept trains moving by warning engineers of safety hazards
o Robert Fulton promotes steamboat era traveling upriver 150 miles in 32 hours
 By 1830, 200 steamboats traveled western rivers that flowed into the Mississippi River
o Canals were built to transport goods-America had more than 3300 miles of canals
o Railroads took over for canals, offering speed and winter travel
 steam powered trains began operating in the US in the 1830s
 by 1850, 9000 miles of track laid across the US
The Market Revolution Transforms the Nation
o Only 14% of workers had manufacturing jobs in the early 1800’s
o Produced more and better goods at lower prices, affordable for ordinary American
o Upgraded travel allowed people to buy from distant places.
o By 1840’s transportation and communication make regions interdependent
 North and South linked by Steamboats
 East and West linked by railroad, telegraph, and Erie canal
o Heavy investment in canals and railroads transformed Northeast into center of American commerce, leading
to industrialization
o Those who farmed began to use products like John Deere steel plow and Cyrus McCormick’s reaper (harvest
grain)
o South remained agricultural with cotton, tobacco, and rice, using slaves
U.S. History Chapter 3.4 Notes
Changing Workplaces
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New economy changed the way people worked
Moving production from home to factory split families, created new communities, and transformed relationships
between employers and employees
By mid-19th century, new machines allowed unskilled workers to perform tasks in factories that once had taken the
effort of trained artisans
The Lowell Textile Mills
o Large textile Mills in Lowell, MA
o Female employees b/c abundant source of labor for low wages; offered better pay than teaching, sewing, and
domestic work
o Work conditions deteriorated; more than 12 hour long work days, dark, hot, and cramped
o Factory owners showed little sympathy for plight of workers; had no problems getting rid of workers to fill
their spots.
Workers Seek Better Conditions
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Workers Strike
o 1834- 15% wage cut led 800 girls to organize a strike
 Press and clergy criticized, leading the girls to agree to return to work at reduced wages and strike
leader fired
 Tried in 1836 for same reasons, but bosses win out
o Only about 2% or workers in US organized in 1830’s and 1840’s, but there were dozens of strikes-many for
higher wages, some for shorter hours
o Employers defeated most of strikes b/c they could easily replace unskilled workers with people recently
arriving from Europe who desperately needed jobs
Immigration Increases
o Immigration raises dramatically from 1830’s-1860’s
o 1845-1854 there were 3 million immigrants; more than 1 million were Irish fleeing the potato famine
 The Irish faced prejudice because they were Roman Catholic and because they were poor; protestant
mobs constantly harassed them.
 Others resented that they were willing to work as cheap labor and were desirable for employers.
National Trades Union
o Trade unions in different towns came together to expand power
o Journeymen’s organization from several industries united in 1834 to form the National Trades’ Union
o Faced opposition from bankers and owners
o Hampered by court decisions declaring strikes illegal
o 1842, MA Supreme Court supported the workers’ right to strike in Commonwealth v. Hunt