When Was North East and Mid-Atlantic Most Industrialized

Topics: Monopoly, Economics, Monetary policy Pages: 8 (2640 words) Published: March 23, 2015
N.E & Mid-Atlantic most industrialized -> 1850s firm size increased dramatically (textiles & iron)

Only few ppl had good land due to geographical restrictions in NE also MPLand became reduced due to cheaper transportation and more productive land to the west / manufacturing easier to inject K and technology bc don’t need land as much -> ppl left farming to go west or work in industry

Factories -> large scale industrialized plants, often used powered machinery, supervision and “factory discipline” Relative Productivity Hypothesis -> textile mills employed many women/children which were underutilized sources of labor, the MP of women/children relative to men was lowest in NE bc Ne agriculture (hay / wheat) requires high physicality therefore NE industrialized 1st Americans demanded more local cotton due to embargo and high tariffs / opp. Cost of making own increased / rising incomes / reduced transport costs , elastic demand increased more than supply leading to lower prices and higher outputs ? South & Midwest -> size and # of firms both increased 1850s, had better labor productivity than other regions Iron growth slower than textile by ½ (did not adopt state of art British tech as aggressively) due to lack or resources before new tech in 1840s Water Vs Steam power: depended on mill location (equal costs) more water power sites in NE so more wheel plants also NE slowest to adopt steam / sugar and sawmills used steam due to geo restrictions and high interest rates made initial construct of wheels a heavy burden / American steam engine was cheaper, smaller, lighter and easier to use South less industry -> potential investors preferred agriculture / no mass markets in south bc unequal income distribution / slave investments more profitable / slavery -> lower pop. Density, lower internal improvements, lower property values bc slaves (K) were much more mobile than free labor

Lower birthrates -> as opportunities increased child bargaining power also increased so parents got lower return on investment in children / northern: land scarcity correlated with lower birth rates / southern: slavery created high entry barrier to agriculture 1840-1860 -> large immigration / Irish – 1846-55 bc of famine, mostly poor to the eastern cities / Germans – 1850s political upheaval and poor harvest to Midwest non-poor / Chinese – 1850s political upheaval and famine to California / Avoidance of south

Southern Succession -> abolitionist ideology threatened slave property rights which were 3 times larger investment than manufacturing / huge class inequality in the south b/w rich & poor After war the south-> could no longer force ppl to move west so land became scarce and cheap labor became a problem to acquire thus land-intensive cultivation occurred with stagnant labor productivity / leads to new tenancy arrangements / lower wages, higher interest rates, more rural Agriculture 1860-1900 -> growth in area devoted to farming / increase in # of farms / trans. Developments greatly expanded markets / tenancy of cheap land policy caused speculation / middle Atlantic farming declined / pattern of rising tenancy due to higher capital costs to entry – those costs due to higher land prices and mechanization 1865-1896 -> falling prices in agriculture due to expansion of markets and globalization / farmers didn’t understand what they couldn’t observe overseas / increasing capital costs lead farmers to borrow more / only had short term balloon mortgages / supply was growing faster than demand so prices fell while output increased (graph) / market prices were integrating b/w Chicago NY and Liverpool – farmers had more risk b/c prices responded to global conditions not local so bad crops didn’t mean higher prices like before Farmer protest movements -> rooted in response to land speculation & price gouging by lenders and RR / (Higgs View) farm real income rising slower than other sector income – farmers resented this and called for...
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