Industrial Revolution Free Enterprise The Roots of Affluence American Agriculture

1. Industrial Revolution Free Enterprise The Roots of Affluence American Agriculture

3. Reasons for Industrial Revolution Some early decisions by American social and political leaders planted the seeds of industrial growth. A tariff high enough to discourage imports and give domestic industries time to grow. Other Hamiltonian measures gave great encouragement to business in general. The Industrial Revolution in England brought many changes to American industry between 1776 and 1860.

4. Development of Industrial Revolution One key development was the introduction of the factory system, which gathered many workers together in one workplace and produced goods for distribution over a wide area. A second development was the �American system� of mass production which originated in the firearms industry about 1800. the new system required precision engineering to create parts that were interchangeable.

5. Development of Industrial Revolution A third development was the application of new technologies to industrial tasks. A fourth development was the emergency of new forms of business organization, notably the bank and the corporation, which facilitated the growth of industry. Finally, the construction of railroads beginning in the 1830s, marked the start of a new era for the United States.

6. Free Enterprise Most Americans think that the rise of their nation as a leading producer of manufactured goods, food and services could not have occurred without the economic freedom of capitalism ----which many prefer to call free enterprise.

7. Development of Free Enterprise The story of American economic growth is a story of people inventing new devices and processes, starting new business and launching new ventures. For each of these endeavors, money is needed. That money is known as capital. Individuals started enterprises with money borrowed from others. They share the profit gained with those investors. When they wanted to expand their businesses, they again borrow money.

8. Very early, people in the United States saw that they could make money by lending it to those who wanted to start or to expand a business. That led to the creation of an important part of the current economic scene: the selling of stock, or shares, in a business. Knowing about business is important if one wishes to make a profit in the stock market. Many problems accompanied the development of modern American industrial capitalism during the past century.

9. The Roots of Affluence The vast dimensions and ample natural resources of the United States proved from the first to be a major advantage for national economic development. A population of more than 250 million people provides both workers and consumers for American business. Rapid growth helped to promote a remarkable mobility in the American population----a mobility that contributes a useful flexibility to business life.

10. The Roots of Affluence The American people have possessed to an unusual degree the entrepreneurial spirit that finds its outlet in such business activities as manufacturing, transporting, buying and selling. Some have traced this entrepreneurial drive to religious sources. A variety of institutional factors have favored the success of American business and industry. One result was a rapid accumulation of capital, which could then be used to produce further growth.

11. American Agriculture American agriculture assumes a richness and variety unmatched in most other parts of the word. In part, this is due to the vastness of the nation itself; in part, it is due to the generosity of nature. American agriculture is, by any standards, big business. Indeed, the term �agribusiness� has been coined to reflect the large-scale nature of agricultural enterprise in the modern U.S. economy.

12. Benefits Both American and foreign consumers benefit from the American farmers, low-cost output. The standard of living of American farmers is generally high. The readiness of many farmers to adopt new technology has been one of the strengths of American agriculture.

13. Problems While the high productivity of American agriculture has kept food prices low for consumers, farmers have been perhaps too successful. A period of economic difficulty began in the early 1980s. Agricultural exports declined, partly due to the high value of the United States dollar (which raised the cost of American products to foreign buyers). Crops prices fell and interest rates rose.

14. Problems In 1987, there were slightly more than 2 million farms in the United States�down by about 7 percent from the number just five year earlier. Many farm owners, especially owners of smaller farms, do not work on the farms full time. Critics accuse both corporate and family farmers damaging the environment.

15. Discussion 1.Do you agree that � cultivators of the earth are the most valuable citizens�? Give your reasons. 2. It is known to all that buying and selling stocks is a risky business. Why do you think there are still many people involved in it? 3. Give examples of industries which are declining, and industries which are fast developing in the United States.