Overview
This lecture introduces the Market Revolution in the early 1800s, focusing on its causes, regional differences, and key effects on economic connections, transportation, and daily life.
The Market Revolution: Definition & Context
- The Market Revolution occurred in the United States between roughly 1815 and 1860.
- It marked a shift from local, subsistence-based, barter economies to impersonal, cash-oriented, commercialized economies.
- Most changes occurred in the North; the South remained largely agricultural and unchanged during this period.
- People began producing surplus goods for sale in distant markets rather than just for local use.
Role of Transportation Improvements
- Poor early 1800s transportation isolated rural populations and limited economic opportunity.
- Improvements like steamboats, canals, and especially railroads reduced travel times and shipping costs.
- Railroads mostly developed in the North, linking major urban centers and supporting economic growth.
- The South lagged in infrastructure development due to its continued focus on agriculture and lack of cities.
The Erie Canal: A Case Study
- The Erie Canal (opened 1825) connected Albany (on the Hudson River) to Buffalo (on Lake Erie), spanning about 350 miles.
- The canal linked the eastern seaboard with the Great Lakes, opening up the Midwest for economic settlement and development.
- Farmers along the canal could now sell surplus crops in distant markets and receive payment in cash.
- Cities and manufacturing grew along the canal route as economic activity and population increased.
Effects on Society and Economy
- Increased commercial connections tied people together over large distances through economic transactions.
- Rural areas saw the rise of factories and industry, shifting from self-sufficiency to market dependence.
- Families now relied more on unpredictable market forces, facing new risks and opportunities.
- The use of cash became widespread, enabling households to purchase more manufactured goods.
Key Terms & Definitions
- Market Revolution — Transition from local, subsistence, barter-based economy to national, commercial, cash-oriented economy.
- Subsistence Farming — Growing crops mainly to feed one's family, with little or no surplus for trade.
- Erie Canal — Major canal in New York connecting the Hudson River to the Great Lakes, drastically improving transportation and economic growth.
- Infrastructure — Basic physical systems (roads, canals, railroads) needed for economic activity.
- Impersonal Market Relations — Economic interactions between people who do not know each other personally.
Action Items / Next Steps
- Review the specific effects of the Market Revolution on the workplace and family in the next module.