The Market Revolution is a historical model that overturned the perspective of trade for nations and the entire world. In essence, this transformation of American and global trade occurred in the 19th century between the 1820s and 1830s 1 . This revolution caused lasting effects on social and economic aspects of the US, which are still felt today.
Economic Effects
Significantly, the era can be seen as the real cause of the high-level economic developments in Southern and Northern states. For instance, there was a vicious growth of processing factories in the South, such as Cotton ginneries 2 . On the other hand, factories were built in the north, leading to more cities than in the South.
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During the market revolution, railroads and canals were constructed to aid the movement of products. In essence, with the growing businesses beyond the US, the country needed to be connected to the entire world to expand the market for cotton from the South and products from the north. With such infrastructural developments, the annual expenditure of the federal government went up to an average of USD 1323000 3 . This fact indicates the increased efforts by the government to expand the transport network.
More banks were chartered during this period to fund the high rate of growth. For example, while only one chartered bank existed in 1783, over 266 banks received charters in 1820. This trend continued even after the era 4 . For instance, in 1840, a total of 702 banks were chartered, while by 1860, there were 1371 banks 5 . This fact indicates the economic development in the USA during and after the market revolution was driven by railroads, steam navigation, canals and banks.
It is important to consider that paper currency became popular during this era. With an expanded range of business, the colonial wealth signifiers were replaced with paper bills. This fact meant that those with money in the banks were considered to have meant as opposed to the owners of lands. This change caused an increased rate of development, with investments into the transport and industrial sectors becoming easier as there was a higher level of liquidity. The rise of the paper currency enhanced employment opportunities as it became easier for employers and employees to value labor. It is important to note that the introduction of the currency was vital in motivating the development of individual development as opposed to signifiers such as land, which limited most people while advantaging colonial settlers and American farm owners 6 . With the availability of money, all other signifiers of wealth could be acquired by anyone who had the means to accumulate enough money. This fact means that more families developed economically with more ability to earn income.
Significantly, with the entry of capitalism and an expanded trade came counterfeit bills during this era. Such fake bills negatively affected business by causing unprecedented losses to traders. This fact caused the need by traders to invest in means of detecting and countering the conmen and counterfeit bills.
One of the negative effects of the era was the emergence of depressions. These depressions affected diverse commodities that had previously determined the growth of wealth. For instance, there were rampant speculations on land, slave laborer’s and railway bonds, which became scarce with an extreme growth rate 7 . These depressions not only occurred during the period but also after the market revolution.
Social Effects
The market revolution is credited for the transformation of American society from an agrarian to a capitalist one. With the rise of this revolution, the socialist society fell, giving way to a new wave of self-development and growth of factories. This change created a sense of competitive effort, which indicates a change in the behaviour of the Americans. It is important to consider that despite the role played by industrialization in the transformation of the world, individualism became widespread during the market revolution period due to the need for individuals to survive in a highly developing nation.
Significantly, with the upholding of capitalism during and after this era, the gap between the rich and the poor increased. In essence, social classes in the US and beyond became more distinguished, with some leading the means of production and others owning the means. For instance, while factory owners and proprietors in the rail and steamboat transportation business sprouted, slaves in the cotton farms and providers of cheap labour became highly important. It is significant to note that even today; the gap between the rich and the poor keeps growing with the ever-growing disparities in the distribution of government services 8 . Those considered to be of the upper class have more access to quality healthcare and education than those in the middle and lower classes due to affordability.
The growing need for mill girls, especially due to the expansion of factories, resulted in higher rates of immigration even after the era. Essentially, Americans were either engaged in slave labor, comprised exclusively of black people and in white color jobs. There was a gap for cheap labor in factories that had to be filled by immigrants, especially those from Mexico 9 . This effect can be felt even in the modern world with an ever-increasing population of immigrants. Essentially, illegal immigration resulted from the growth of factories and cities, which created an upsurge in the labor market. It is important to note that immigrant populations were in urban areas as opposed to rural areas.
Further, the era caused a differentiation in the demographic distributions creating a difference in the color of populations in the north and South of the USA. While slavery existed even before created larger populations of black slaves in the southern region, the revolution created larger populations of immigrants in the north 10 . It is important to consider that the black slave population remained dominant in the Southern plantations while Latinos settled where factories were. This point explains the uneven distribution of white, black, Asian and Latino people in the USA.
With the rise of the paper currency, more social problems were witnessed. For example, conning and prostitution became rampant due to the need to earn a living in cities where the labor supply exceeded the demand. Anxiety in society was created by the increase in fear of con artists and counterfeit bills.
In conclusion, the market revolution caused various social and economic effects, which were both negative and positive. The emergence of the paper bill led to a higher rate of development due to the change from the initial indicators of wealth. However, there was a rise in social issues such as hypocrisy, theft and prostitution. Importantly, more developments were experienced in the North of the USA with the growth of cities and factories. Significantly, the factories attracted cheap laborer’s hence the increase in the numbers of immigrants who included Latinos.
Bibliography
Cutterham, Tom. "Class, State, and Revolution in the History of American Capitalism." Journal of Historical Sociology 33, no. 1 (2020): 26-38.
Gambaccini, Alexander P. "The United States: From Its Origins to 1877." (2018).
Lekas, Michelle. "Complete and Unabridged." (2020): 189-198.
Locke, Joseph L., and Ben Wright, eds. The American Yawp: A Massively Collaborative Open US History Textbook, Vol. 1: To 1877 . Stanford University Press, 2019.
Mannard, Joseph G. "“Our Dear Houses Are Here, There+ Every Where” The Convent Revolution in Antebellum America." American Catholic Studies 128, no. 2 (2017): 1-27.
1 Locke, Joseph L., and Ben Wright, eds. The American Yawp: A Massively Collaborative Open US History Textbook, Vol. 1: To 1877 . Stanford University Press, 2019.
2 Gambaccini, Alexander P. "The United States: From Its Origins to 1877." (2018).
3 Cutterham, Tom. "Class, State, and Revolution in the History of American Capitalism." Journal of Historical Sociology 33, no. 1 (2020): 26-38.
4 Cutterham, Tom. "Class, State, and Revolution in the History of American Capitalism." Journal of Historical Sociology 33
5 Mannard, Joseph G. "“Our Dear Houses Are Here, There+ Every Where” The Convent Revolution in Antebellum America." American Catholic Studies 128, no. 2 (2017): 1-27.
6 Mannard, Joseph G. "“Our Dear Houses Are Here, There+ Every Where” The Convent Revolution in Antebellum America." American Catholic Studies 128
7 Lekas, Michelle. "Complete and Unabridged." (2020): 189-198.
8 Ibid, 32
9 Locke, Joseph L., and Ben Wright, eds. The American Yawp: A Massively Collaborative Open US History Textbook, Vol. 1: To 1877 .
10 Lekas, Michelle. "Complete and Unabridged."
