By eve of civil war us ahead of every nation in the

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by eve of Civil War, US ahead of every nation in the world in the ratio of students to total population (excluding slaves)focus heavily on how to improve technologyInterchangeable parts - make thousands of pieces and then buildA.3.Growing Markets and Economies of Scale:if you have a large market to sell to, you have productive advantageConsequence: underselling of small manufacturers hurt by industrial revolutionA.4.Capital and Future Preference:productive capital: things that produce other things are the real economyinvestment comes from foreign loans but investors want to get away from thatEntrepreneurs dont always live high life, instead think research and development/later gratificationA.5.Role of the Government: crucial in helping out. Hamiltons idea - need tariff protection if ever have chance to be successful. Also need a way to funnel savings into constructive capital investmentA.5.a)Banks and General Incorporation Laws:provided by states and federal govtAmerican law increasingly supported efforts of entrepreneurs to participate successfully in market by having corporate charters given to companiesinvestor in stock offerings can buy as much initial offerings as they want, and liability will be limited to extent of their investmentCEOs and investors not personally liablegovt will contribute to capital formation, good investments more directly - providing many goods and services that entrepreneurs arent interested inA.5.b)Patent Laws and Social Overhead Capitalkeep FIRE under checktollbooths on everything
HIST 105 - Baumenterprise alone cant accomplish growth and prosperity we need without savings and investmentgovt taking tax money and investing in roads, canals, even railroadsB.The Inter-Regional Pattern of Trade: trade links arose between the three regionsB.1.SOUTHERN (Slave) States: King CottonB.1.a)Demand for Cotton Cloth & Eli Whitneys Cotton Gin:removes sticky seeds from cottonrevolutionizes and gives boost to slave labordominates lower South nowthousands of slave holders migrate from Western Georgiatremendous increase in production of cotton1859 - 5 million bales of cotton producedSouth becomes food deficientbest investment free white man can make if inherits moneyB.1.b)Cotton as the Major Expansive Force in the U.S. Economymakes up over 50 percent of all American exports in value - all this money comes back into the SouthB.2.WESTERN (Midwestern) States: Grainfields and Foodstuffs: as Old Northwest became more settled society, farmers found themselves drawn into new market economygrowing cities = market for produce and source of creditloans originating w/ eastern banks and insurance companies financed acquisition of land and supplies, and later the purchase of fertilizer and new machinery to expand production1840-1860 - Americas output of wheat nearly tripledbulk of crop consumed within countryB.2.a)Cyrus McCormicks Reaper:

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