Figure 1.--The United States has as a result of the phenomal growrth in the 19th century transformed it self from 13 stuggling British coloniing hugging the Eastrn seabord and facing a vast wilderness to the continental giant surpassing the industrial giants in Europe (Britain and Germany). America at the turn of the 20th century was the world's leading industrial country, but wih an economy roghly equivanent to the European Continental leaders. What would push American into 20th century industrial dominance with an econmy equivalent to much of Europe combined was farm boy Henry Ford and the mass production of the automobile. Here we see an affluent middle-class American family proudly posing with their expensive new car in 1911. Ford's Model T-Ttin Lizzie brought the automobile within the reach of working-class Americans, both industrial workers and farmers. Somthing that did not occur in Europe.

The Industrial Revolution is arguably the most important development in human history since the development of agriculture (about 8,000 BC). The Industrial Revolution began first in Britain (mid-19th century). It slowly spread to North America and continental Europe. The British origins was a great advantage to the United States. It meant that among the immigrants to America were Britons with a wide range of technical skills. Along with them, the American commitment to free market capitalism and the rule of law created the stable conditions for foreign investments. The British were especially active. The British-based legal system facilitated economic development and guaranteed contracts. And the free market outlook of most Americans prevented Government interference which had impeded economic development in many European countries. While the British legal tradition was vital for America, the Revolution was also necessary for America's own industrial revolution. This was because Britain saw America as an adjunct for the British economy. America's role to provide agricultural products and raw materials and to serve as a market for British manufactures. Laws restricted the development of American manufacturing. This was only possible after America achieved its independence. American policies toward public schools also resulted in a well-educated population. These factors combined with abundant natural resources created favorable conditions for the spread of the industrial revolution to the United States. This set the foundation for the United States emergence as the most technologically advanced country in the world. Especially important was the availability of cheap energy. Initially this meant seemingly inexhaustible forests and rivers, but as the industrial revolution developed immense coalfields and then oil fuel America's industrial expansion. Even before the Revolution (1776-83) America had constructed a substantial merchant fleet, but inland commerce was at first dependent on rivers. This changed with the construction of first canals and than railroads. Foreign, especially, British capital played a central role in financing the early railroads. It is difficult to date the beginning of the American industrial revolution, but the 1790s is when several developments came together. The new Federal Constitution created the conditions favorable for trade and commerce. Sammuel Slater, a textile factory manager arrived in America and opened a cotton spinning factory in Rhode Island (1790). He introduced both the machinery and an efficient factory system which became known as the Rhode Island System. Shortly after, Eli Witney's invention of the cotton gin (1793) laid the foundation for cotton production in the south which would provide the raw material for New England textile mills. Francis Cabot Lowell was one of many who adopted Slater's Rhode Island System and improved upon it. The Napoleonic Wars in Europe promoted industrial development in America. President Jefferson issued embargoes. The British Royal Navy made it difficult for merchant vessels to reach French-held continental Europe. This greatly increased the demand for American produced industrial goods. The War of 1812 virtually ended trade for several years and much of the American merchant navy was seized or destroyed by the British. This was a great boon to domestic manufactures who began opening factories in the northeast. The Erie Canal (1825) played a major role in opening the vast western lands, especially the Upper Midwest to the to the big eastern cities laying the foundation of an industrial economy. The same did not occur in the South. Fortunes could be made exploiting slave labor and few planters took an interest in opening factories. The railroads played a major role in expanding he economy and industrialization. America fought the Mexican War before industrialization had made a huge advance. This was not the case in the Civil War where industrialization splayed a major role in the Federal victory. After the war America began building an industrial powerhouse which would not only make Americans the most prosperous people on earth but profoundly affect the history of the 20th century. American industry received a huge further burst when Henry Ford created the Model-T-Tin Lizzy, an automobile that working-class people could afford (1907).

Turning Point in History

The Industrial Revolution is arguably the most important development in human history since the development of agriculture (about 8,000 BC). The Neolithic (Agricultural) Revolution changed everything -- at least in the areas impacted, mostly river valleys. The Industrial Revolution began first in Britain (mid-19th century). It slowly spread to North America and continental Europe, but at first no much beyond this limited area.

British Connections

America's British origins was a great advantage to the United States. It meant that among the immigrants to America were Britons with a wide range of technical skills. Along with them, the American commitment to free market capitalism and the rule of law created the stable conditions for foreign investments. The British were especially active. The British-based legal system facilitated economic development and guaranteed contracts. And the free market outlook (capitalist) of most Americans prevented Government interference which had impeded economic development in many European countries. As an accident of history, British economist Adam Smith published his work on free markets the same year America declared its independence (1776). 【Smith】 And while the Dutch and British invented capitalism (late 17th century, no country embraced capitalism like the new United States.

The Revolution (1776-83)

The political system that developed in colonial America was not planned. It developoed by he colonists setting up a systen based on the system existed in Britain. YThexecutive wa appointed by the king and they elected a colonial legislature. The Britidsh Government lsargely bignored thecolonies as the coutry decended in civil war (1642-51) and a military cotrolled commonmwealth (1649-60). By the time Britain reakiksed what had occurred, they could no longer reverse it. The colonists gradually believed thgat atheir lehislatures had he same poers as thge Westminsdter Oarliament. Namely that taxes could not be imposed without their conmsent. There were other issues, but this as ghe findamental difference. A coliksiionwas ineviatable. While the British legal tradition was vital for America, the Revolution was also necessary for America's own industrial revolution. This was because Britain like other colonial powers saw America as an adjunct for the British economy. America's role to provide agricultural products and raw materials and to serve as a market for British manufactures. Colonial laws restricted the development of American manufacturing. Changing the legal landscape was only possible after America achieved its independence.

Policy Divergences

Amidst the background of shared cultural and legal systems, the new United States set out on many new paths. Many of these differences would have profound economic consequences. Surely the most important was a new vision for land ownership. Much of the land in Britain was owned by aristocratic families who had vast estates. Land and agriculture was still the chief generator of wealth at the time of the Revolution (1776-83). Even before the new Constitute was drafted, the Congress passed the Northwest Ordinance. This ground breaking legislation guaranteed that Western lands would be apportioned for family farms meaning that for the first time in history, that the people who actually did the farming could own the land they worked and reap the benefits of their labor. This turned the war with Britain into a truly revolutionary event, new land ownership patterns made the American Revolution the greatest of the several revolutionist that would follow in its wake. While the Dutch and British has invented capitalism, the British economy and many officials still had a mercantile mindset. The United States in constraint was not tainted with mercantilism. The Americans embraced capitalism. Even before the Revolution, America and Germany (not yet united) had set out on creating new free public schools for all citizens. This is something Britain would not launch until 1870. The result was o create a vast literate population (including women) who were in a position to pursue their god-given abilities like no other population in history. Tragically America's modern public schools have fallen woefully behind the standards set at the outset and continued fir two centuries. Britain before the Revolution was in a position to dominate the entire North American continent with its vast resources and fertile land. It successfully expelled France from North America as a result if the French and Indian War (1754-63). But with France expelled, Britain saw the need to keep the Thirteen Colonies pinned to he Atlantic seaboard. Parliament did this with the Quebec Act (1774). It expanded Quebec's territory to the Ohio and Mississippi rivers, invalidating the colonies' claims to Western lands beyond the Appalachians. It established an appointed governor and most notably a legislative council without an elected representative assembly. Unlike the thirteen colonies there would be no more elected legislatures challenging royal decrees. Alarmed by perceived royal trampling of civil liberties, the American passed a bill of rights guaranteeing basic rights like free speech and religion. As part of the Constitution these were guaranteed rights that no king or parliament could touch. There would be no established church. And basic rights would be guaranteed. And given what is going on in Britain today, is all too clear how important this was. A principal of British governance was that taxes had to be levied by Parliament. The King could not impose new taxes without Parliament's approval. And Britain was unwilling to extend that authority to the colonial legislatures. The Americans turned away from monarchy and aristocratic ranks. Rather the Americans created a republic with citizens rather than subjects. There would be no hereditary banks. The Constitution banned titles of nobility to promote a society based on personal merit. Article I, Section 9, Clause 8, ensures that neither the federal government nor individual states can grant titles like duke or earl, reflecting a core American rejection of European aristocracy. Naturalized citizens must formally renounce any foreign titles of nobility before gaining citizenship.

Natural Resources

Natural resources were a factor. At first endless untouched forests were a major asset even before the industrial revolution. Copper and iron were mined from an early point. With independence and the bedimming of the industrial revolution minerals became increasingly important. Western Pennsylvania was an important source of iron and coal. And as Americans moved west vast new mineral resources were on, especially iron ore in the upper-midwest. We note Marxist professors stressing the imprtance of natural resources. This is becaue they want to dismiss the vital importance of economic freedom (capitalism). Matural resources are imprtant, but clearly they are not the only or primary factor. There are many resource rfich countries like Russia that or failures. There are also many resource-rich countries in Africa and Latin America that are failures. In addition there are highly uccessful countries with few resources thgat are highly sycessful. Japan and the Asian Tigers are prominent examples.

Energy

The industrial revolution was not just about machinery. It was fundamentally about power. Since the beginning of the neolithic revolution (about 8,000 BC), human society was based on human and animal power. It is why modern engines are rated in horse power. With minor exceptions (water and wind), this did not change for some 10 millennia. The industrial revolution began with water power, water wheels turned by running rivers. This was available in England and New England, but as in Britain was soon found to be insufficient. And the solution was steam power and coal. America has vast reserves of coal. Scottish inventor James Watt made substantial improvements in team engines, making them piratical for industrial use (1760s). Finally human society could advance beyond human and animal power (1760s). We finally begin to see these engines appearing in practical use, first in Britain. And then in America (the turn of the 19th century). The steam was at first generated by burning wood, but his was impractical, especially in Britain. This set the foundation for first Britain and then the United States emerging as the most technologically advanced countries in the world. Especially important was the availability of cheap energy. (There were three major rivals (Napoleonic France, Germany, and the Soviet Union)--but they did not have a robust capitalist economic system.) Initially this meant seemingly inexhaustible forests and rivers, but as the industrial revolution developed immense resources of first coal and then oil fueled America's industrial expansion. It would be coal that would define the industrial revolution. And America had coal in abundance. The final step in the industrial evolution was the internal combustion engine and oil. Here America diverged from Europe. Both America and Europe had large coal resources. Coal was spread out in Euope, but sevral different countrie had imprtan resources. Oil was different. America had it and Europe did not. Only Russia had oi and until well into the the 20h century in only limited quantities. Romania also limited quantities. America iw where he first oil well was drill (1846) and America had oil in abundance. The transition to oil began (early-20th century). There were major economic consequences. But the whole future of Western Civilization would turn on this divergence beween Europe and America.

Transport

Even before the Revolution (1776-83) America had constructed a substantial merchant fleet, but inland commerce was at first dependent on rivers. Therewerefew roads tghat went dasr beyomd city limits. Most of the continent was an untamed wilderness. This changed with the construction of first canals and than even more importantly the railroads. ilroafs could be built where ever needd. For the frst time commerce did not have follow river systems or the lmed numbrs of cnals. And as the ril system developed, speed also increased. This was noit just a novelty, but an imprtant factor impacting commerce. The railroads significantly reduced the cost of moving goods. For a large continental power. this was game changing. Producers did not begin or expamd profuction becase the cost od moving goods beyond local market was so high. Lowering the cost of freight made whole industries posible. Notive gow high-value luxury goods were all that was carried on the famed Silk Road. Lowering the cost of transport significantly expaned commerce. Foreign, especially, British capital played a central role in financing the early American railroads.

Chronology

It is difficult to date the beginning of the American industrial revolution, but the 1790s is when several developments came together. The new Federal Constitution created the conditions favorable for trade and commerce. Samuel Slater, a textile factory manager arrived in America and opened a cotton spinning factory in Rhode Island (1790). He introduced both the machinery and an efficient factory system which became known as the Rhode Island System. Shortly after, Eli Witney's invention of the cotton gin (1793) laid the foundation for cotton production in the south which would provide the raw material for New England textile mills. Francis Cabot Lowell was one of many who adopted Slater's Rhode Island System and improved upon it. The Napoleonic Wars in Europe (1798-1815) promoted industrial development in America. President Jefferson issued embargoes. The British Royal Navy made it difficult for merchant vessels to reach French-held continental Europe. This greatly increased the demand for American produced industrial goods. The War of 1812 virtually ended trade for several years and much of the American merchant navy was seized or destroyed by the British. This was a great boon to domestic manufactures who began opening factories in the northeast. The Erie Canal (1825) played a major role in opening the vast western lands, especially the Upper Midwest to the to the big eastern cities laying the foundation of an industrial economy. The same did not occur in the South. Fortunes could be made exploiting slave labor and few planters took an interest in opening factories. In fact, Southerners looked askance at the robust economy developing in the North. This was because of the growth of the Abolitionist Movement, but also the overall cultural milieu. They perceived Northerners as mon gubbing, aggressive, hypocritical, and fanatical, believing that Northern industrialism in addition to abolitionist movements threatened their more pure and honoravle agrarian way of life, economic stability, and social order. 【Osborn】 The United States is a huge county. Thus transport has to be major fasctor in economic development. Transport was a first dependent on rivers/canals and sea shipping. The coming of he railrod changed this. The railroads played a major role in expanding he economy and industrialization (bginning in he 1840s). America fought the Mexican War (1846-48) before industrialization had made a huge advance. This was not the case in the Civil War (1861-65) where industrialization would play a major role in the Federal victory. After the war America began building an industrial powerhouse which would not only make Americans the most prosperous people on earth but profoundly affect the history of the 20th century. Iron and steel is at the heart of any industrisal economy. The American steel industry exploded (late-19th century). This reulted from the adoption of the Bessemer process and the growth of railroads. Scottish immigrant Andrew Carnegie revolutionized the industry by integrating every step of the supply chain—from mining iron ore to shipping it via Great Lakes fleets. Financier J.P. Morgan purchased Carnegie Steel and merged it with several other major companies to form the U.S. Steel Corporation, the world's first billion-dollar company (1901). American industry received a huge further burst when Henry Ford created the Model-T-Tin Lizzy, an automobile that working-class people could afford (1907). TYhe result was that the United States was not only the most important industrial nation, but began to rival most of Europe combined.

Sources

Osborn, Kyle M.. "Antebellum Southern travelers and sectional identity," Southrn Cultures Vol. 21, No. 4 (Winter 2015).

Smith, Adam. Wealth of Nations (1776).

Created: 2:37 AM 12/4/2014
Last updated: 7:27 PM 7/25/2026