Crash Course US History: The Market Revolution

Introduction to Economics

• Economics involves decisions shaping lives and the world.
• Focus on the Market Revolution, a period shaping modern work life.
• Occurred in the first half of the 19th century, before the Civil War.
• Era had little political contention, known as the "Era of Good Feelings."

Transition from Jeffersonian to Hamiltonian Economy

• Shift from self-sufficiency on farms to producing goods for sale.
• Paved the way for a modern commercial industrial economy.

Technological Advancements

• Transportation and Communication:
  • Transportation was difficult in the 18th century; markets were small and local.
  • New transportation methods reduced costs and increased efficiency.
  • Roads: Improved roads financed by tolls; National Road built by the government.
  • Canals: Cheaper, efficient transport; Eerie Canal linked Great Lakes to Hudson River.
  • Railroads: By 1860, over 30,000 miles of rails; railroads more impactful long-term.
  • Telegraph: Improved communication, enabling better market information.

Factory System and Industrial Growth

• Factories centralized workers, enhancing production efficiency.
• Initially powered by water, later by steam, enabling more location flexibility.
• American system of manufacturing with interchangeable parts developed.

Economic Investments and Business Organizations

• Required capital investment, modern banking, and risk-taking.
• Limited Liability Corporation (LLC): Allowed business ventures without personal financial risk.
• Role of Government:
  • Supported infrastructure development.
  • Supreme Court protected business interests (e.g., Gibbons vs. Ogden).

Changes in Work and Society

• Shift from home-based to factory-based work.
• Work became time-regulated, not task-regulated as on farms.
• Women and immigrants, notably Irish post-potato famine, became factory workers.

Intellectual and Social Reactions

• Transcendentalists: Believed in individual freedom and self-reinvention.
• Emergence of Working Man's Parties and unions for better wages and conditions.
• Migration West for "manifest destiny," seeking new opportunities and land.

Literary Reflections

• Herman Melville’s "Bartleby the Scrivener" critiques the market economy.
• Highlights the lack of intrinsic meaning in factory and clerical work.

Conclusion

• The Market Revolution redefined economic structures and social norms.
• Raised questions on freedom and equality in rapidly changing work environments.

Production Credits:

• Produced by Stan Muller, script by Raoul Meyer and John Green.
• Graphics by Thought Cafe; directed by Stan Muller.
• For further questions, comments section monitored by historians.