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Unit 5 American Economy Outline: Industrial Revolution Free Enterprise The Roots of Affluence American Agriculture The Current Recession Industrial Revolution The birth of the United States and the publication of Adam Smith’s book came at a time when yet another kind of revolution was taking place,the Industrial Revolution. Reasons for Industrial Revolution Some early decisions by American social and political leaders planted the seeds of industrial growth. A tariff high enough to discourage imports and give domestic industries time to grow. Other Hamiltonian measures gave great encouragement to business in general. The Industrial Revolution in England brought many changes to American industry between 1776 and 1860. Development of Industrial Revolution One key development was the introduction of the factory system, which gathered many workers together in one workplace and produced goods for distribution over a wide area. A second development was the “American system” of mass production which originated in the firearms industry about 1800. the new system required precision engineering to create parts that were interchangeable. A third development was the application of new technologies to industrial tasks. A fourth development was the emergency of new forms of business organization, notably the bank and the corporation, which facilitated the growth of industry. Finally, the construction of railroads beginning in the 1830s, marked the start of a new era for the United States. Free Enterprise Most Americans think that the rise of their nation as a leading producer of manufactured goods, food and services could not have occurred without the economic freedom of capitalism ----which many prefer to call free enterprise Laissez-faire Era: economic freedom of capitalism (1)? stock exchange (2)? loan from banks (3)? stimulating economic growth (4)? discrimination in employment (5) monopoly of production and prices and el
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