Early Development of the Colonial and Early U.S. Economy

Colonial struggle - economic transformation as a theme of history
Material Life - technology and goods
Economic Life - market activity
Capitalism - accumulation of Capital

European heritage - feudalism and mercantilism

In the colonial phase - Northern and Southern colonies

North Middle Southern

tech - new tools capitalism - income
clothing wheat, lumber, meat tobacco - rice - indigo
fish/lumber

Mercantile Experience - trade not production

Population Explosion (phases)

1.) immigration 1700-1776 ; 400,000, UK, Scottish, Irish - slaves

2.) social classes
agricultural workers -25%slaves or indentured servants
planters - huge estates
merchants - dominated affairs in northern colonies

Indentured servants - 1/2 southern population
Redemptionitists - Germans
Saves (tripled - 1600) -90,000 1630 to 500,000 in 1776

Commerce - ships owned by UK

1651 - 1753 colonies in mercantilism

Navigation Acts

1. Ship on UK boats
2. All imports except wine and salt from U.K
3. Basic exports shipped to UK
4. Woolens Couldn't be sipped beyond border of colony
5. 1750 - illegal to construct mill for making iron or steel

Articles of confederation - no central authority

Napole

Preparation for the Age of Manufacturer

1815 rural - transportation - turnpikes and canals (Erie 1817-25)

Labor Force - 1800 - 10% were employers - lots of land

Technology

Structural transformation 1815 - 1860

Population increase 5 - 31 mil.

Economic growth rate (1790- 1860 1.3%)

Change in material life ( pace increases)

Distribution of Wealth

Lynne MA - The Case of Lynne and its Shoemakers ( Adam Smith Revisited)
Reproduces effect of the industrial revolution on a small scale (2nd most impt.
manufacturing in the country.)

1st to manufacture large quantities of wholesale shoes - shift from agriculture to industry.

1. Artisans - crafts - 1750's

2. marketplace - merchants - 1800+

3. manufacturers - 1820s

4. factories - 1860s

The Crafts Industry

1. Colonial nonimportation acts 1760s - 1760s decreased UK shoes
2. Before 1760 Lynne produced a few thousand shoes
3. By 1768 - 80,000 town of 2,000
4. 1776 - hurt by post war depression - gluts of French shoes

Stages

I. Most shoes not for market but for individual customers -1750 - 3 Masters1800 - 200 Masters

II. Entrepreneurs pushed away independent shoemakers

The Shopkeeper -

Retail shops accepted products of local shoemakers as payment for provisions and then found a purchaser.

BANKS helped with the financing 1814ish - small masters joined

Early Manufacturers -

1814 - Banks - a social synthesis

Search for profits drove traders more into production
Groups emerged buying labor as a commodity and sold labor to the highest bidder

No new masters after 1800 - Journeymen replaced.

Shopkeepers were the agents of the masters demise - weapons cunning for favorable price - personal credit - wealth

Investment - have a steady employment for 30 to 40 people to make shoes.

III. Manufacturers to Factories - not shopkeepers

1850s 500 men -

not enough shoemakers -labor - farmers, fishermen, etc to complete work

Entrepreneurs - owned raw materials - hired labor to factory work