Download Regional Economics Create Differences

Regional Economics Create
Differences
Section 7.1
pp. 212-218
Preview Questions
• How did the Industrial Revolution affect
the United States?
• How did agriculture differ in the North
and South?
• What was the American System?
I. Industrial Revolution
A. The Industrial Revolution
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Begins in Great Britain in 1700’s
Uses factory system
Mass production of goods
Leads to social and economic
reorganization
I. The Industrial Revolution
B. American Economy
– Hurt by Embargo Act and War of 1812
– Shift from trade to manufacturing
I. The Industrial Revolution
C. American IR begins in New England
– Textile mills
– Rely on labor of young women
– Low wages, long hours, boring work
II. Two Economic Systems
A. Northern Economy – Manufacturing
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Cash crops won’t grown in North
Slavery begins to die out in N.
B. Southern Economy – Cash Crops
– Eli Whitney’s Cotton Gin (1793)
– Larger plantations = more slaves
III. The American System
A. New growth = need to unify nation
B. Clay promotes American System
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Protective tariffs
Stronger national bank
National transportation system
III. The American System
C. Transportation Improves
– National Road
– Erie Canal
III. The American System
D. Tariff of 1816
– Increase cost of foreign made goods
– People in S. & W. resent tariff
E. Second Bank of U.S. set up to establish
national currency