Figure 1.-- |
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The ecomomy of the nodern United States began its development with the European colonization of North America. This included several European countries, but was primarily conducted by the English. At the time the colonization began, neither the British political system or captalism itself had been dully developed. The first two colonies (Jamestown in Massachusetts and Plymouth in Massachusetts) served as prototypes for the two competing economic system that would develop in North and South. Plymouth was founded by religious dissenters influenced by Calvinist theology which had decided views on economic success. The Northern economy developed on the basis of small family farms and handicrafts. British legislation restricted manufacturing. The South developed on the basis of plantation agriculture andc slave labor. Unlike the Spanish Empire, they produced little gold and silver, but in the long run generated far greater wealth. Only a few years after the colonies were established, living conditions for average people weee highrr than in the nother country. And in Britain both the modern English constitution and the capitalist system had evolved by the turn-of-the 18th century. Both were of enormous influence on America. The two differed models of economic developed survived the Revolution and became a dividing line of regional politics in the early years of the Republic. The independent farming and handicraft economy of the north layed the foundation for the industrial revolution. The invention of the cotton gin made possible the expansion of the plantation system in the South. Export earings from cotton helped finance the industrialization of the north. The eventual ecomomic direction of the United States was determined by the Civil War and settled in large measure by the superior capital and industrial resources of the Northern states. After the Civil War, the United States began a rapid period of indusrial expansion which made it the worlds largest industrial power as well as the greatest agricultural producer. The United States developed ever more complex economic and capital institutions to accomodate its industrial expansion. The system was essentially laize faire or ecomonic growth with mimimal taxation and government regulation. The Government did promote economic growth in many ways such as land grants to rail road compsnies. With the rise of the Progressive Movement in the late-19th century, that involvement has expanded.
The American economy is based on several different sectors. Initially agriculture was the principal sector. The agriculural system was varied, especially the difference between North and South. Fishing was an early industry and whaling developed in the late-18th century. When the Westward expansion reached the Great Plains, livestock became important. The handicradts of the northeast developed into industrial manufacturing beginning in the early 18th century. America developed an important ship building and maritime industry made famous by the China clippers. And important minimg industries developed in many states. One of the most important was the coal mining industry. Mining was one of the most dangerous industrial jobs. Oil became a part of the miming complex.
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