history notes 12 - History Notes: October 17, 2007 Lecture...

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History Notes: October 17, 2007 Lecture #12 1790’s In north began to develop industries: move out of country side and into cities; in 1800’s most work done at or near home and goods exchanged by barter system Were not proactive but reactive: fixed problems as they came, didn’t have a day planner to plan things out. If building things, then you did not build them until they were ordered. If money was exchanged then price was determined by one person sitting down with the other and agreeing to the transaction, no posted price list; market as understood today didn’t exist (Industrial Revolution changes this) The Market Revolution : 1776, writer named Adam Smith publishes Wealth of Nations. In a pure market economy-buyers and sellers let supply and demand determine the price, the govt. has nothing to do with the transaction. Some believe in a mixed economy where the govt. should step in so that prices can’t get too high (ex. Gallon of milk for $100) For the market to work at maximum efficiency (1790-1830) requires 3 things: transportation improvements: 1825, Erie Canal opens which allows Great Lakes to trade with E. Coast [trade funnels toward NY] requires water which was available in North building of railroads which were much more flexible than canals-couldn’t carry the volume-easy to operate, but expensive to build and allows to move away from water; people can’t overcome geographic restrictions in the area; true national economy forms Commercialization: the production of goods for a particular market (what do people want? We build it.) Problem is that you have to produce more goods so causes centralization of production in one location, you come to work and make product at the factory QUALITY BEOCOMES IMPORTANT CONSUMER DEMAND ALONG WITH CONSISTENCY Industrialization: power driven and then steam power replaces hand power (textile mills in PA) Lull mills become bigger in 1820’s Adam Smith : wrote Wealth of Nations The Wealth of Nations : book published by Adam Smith where describes market where prices set by invisible hand Invisible vs. visible hand : invisible hand is the market while the visible hand is when 2 people agree on a price James Watt : British subject who is considered the father of the Industrial Revolution (began 1st revolution while U.S. was about 80 years behind); invented the steam engine from idea Newcomen engine (primitive steam engine that pumps water our of coal mines) in 1763, Watt given Newcomen engine and was supposed to fix it-discovered how to build something more efficient, about 10x more
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This note was uploaded on 03/27/2008 for the course BIO 1407 taught by Professor Grise during the Spring '08 term at Texas A&M University, Corpus Christi.

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history notes 12 - History Notes: October 17, 2007 Lecture...

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