Overview

During this period, the United States transitioned from a largely agrarian economy to one marked by industrial growth, westward expansion, and economic sectionalism. The market revolution transformed transportation, labor, and production, while slavery shaped the Southern economy until its abolition.

Key Themes and Events

• Market Revolution: Triggered by innovations like the cotton gin, steam engine, and telegraph. New transportation systems (canals, railroads) connected regional markets and boosted commerce.
• Industrialization and Labor: The North saw factory growth and wage labor, especially in textiles. Women and children entered the workforce, and early labor unions emerged in response to poor conditions.
• Slavery and Cotton Economy: The Southern economy relied on slave labor for cotton production, which fueled exports and textile mills in the North and Britain.
• Tariff and Banking Debates: Economic policy disputes shaped politics. The Bank War and debates over protective tariffs highlighted differences between industrial and agrarian regions.
• Western Land and Agriculture: Land policies like the Homestead Act (1862) encouraged expansion. Farming technology and railroads improved productivity but also displaced Native peoples.
• Postwar Reconstruction Economy: After the Civil War, the South’s economy struggled under sharecropping, debt peonage, and the destruction of infrastructure. Freedpeople faced economic discrimination.

Quick Tip

Understand how the Market Revolution affected different regions and labor systems. Know how slavery shaped Southern economics and how war and reconstruction altered national economic priorities.