Aim: How did an Industrial
Revolution impact the United
States?
Coal, Steam, and The
Industrial Revolution: Crash
Course World History #32 YouTube
US Industrial Revolution
Factors of Production
 Energy – Power > Water (North- Fall Line
of the Appalachian Mts. > Coal (Cheap
and Abundant)
 Labor Cost – Small Population (high
wages) > mechanization
 Stable Gov’t – protected property rights
(Federalist Policies); Patent law;
Contracts; pro-business policies
Factors of Production: Energy
Water Power (Fall Line) > Coal > Steam
Factors of Production: Labor
US population was small – high labor
costs (wages)
 Mechanization – power driven machines
replace hand tools
 Samuel Slater – textile machinery from
Britain; New England mills
 Eli Whitney – Interchangeable Parts –
leads to mass production in the clock and
gun industries; leads to the rise of
unskilled labor

Cotton Is King in the South
Eli Whitney also invents the Cotton Gin farmers grow cotton for larger profits
 Large demand for cotton from GB & North
 Slavery entrenched
 Big Question (again) ... Different
regions – How do you unify them?

Factors of Production: Gov’t
 Henry
Clay creates the “American
System”
 Chief Justice John Marshall’s
Decisions – defend the rights of
property and commercial
interests.
Factors of Productions: Gov’t
1.
2.
3.
Clay’s American System
Protective Tariff (1816)
Resurrect the National Bank
Transportation System – infrastructure;
National Road (West) in 1811; Erie Canal
1817-1825 connected Lake Erie to the
Hudson River – (West and North)
(Serves to Unite or Divide the Country???)
Factors of Productions: Gov’t
John Marshall – Federalist Chief Justice of
the Supreme Court; defends property rights
 Fletcher v. Peck (1810)
 Dartmouth College v. Woodward (1819)
 McCulloch v. Maryland (1819)
 Gibbons v. Ogden (1824)
McCulloch v. Maryland (1819)
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The state of Maryland wanted to tax and, therefore,
destroy the Bank of the US.
He addressed two questions: "Does Congress have the
authority to charter the bank?" and "Does the state of
Maryland have the power to tax the bank?"
In a positive answer to the first question, Marshall argued
that the necessary and proper clause of the Constitution,
also known as the "elastic clause," implied that Congress
could charter a national bank in the exercise of its explicit
power to regulate interstate commerce and coin and
regulate money.
In response to the second question, Marshall affirmed that
"the power to tax is the power to destroy," and that
allowing the state to tax the national bank would therefore
violate the supremacy clause (Article VI) of the
Constitution.
Gibbons v. Ogden (1824)
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This case disputed who had exclusive rights to control
ferry operations on the Hudson River between NY and
NJ.
The state of New York had granted an exclusive license
to Aaron Ogden to operate a ferry on the Hudson.
However, Congress had licensed Thomas Gibbons to
operate on the Hudson under a 1793 act dealing with
vessels "employed in the coasting trade and fisheries."
The conflict between the two steamboat operators -- one
licensed by New York and the other by Congress -- ended
up before the Supreme Court.
Marshall declared that the ferry was engaged in interstate
commerce, and it was therefore under the jurisdiction of
the national government. The scope of what constitutes
interstate commerce was broadly defined, and Marshall
asserted that Congress had full power to regulate any
activity that fell within this definition.
US Industrial Revolution &
The War of 1812
Another factor: Embargo Act/
War of 1812: forced USA to
develop industry - New England
could not satisfy the national
demand for finished goods once
foreign trade was cut off.
Good Times?
(1816) James Monroe – “Era of Good
Feelings”
 Nationalism: place national interests over
all others (regional/foreign concerns)
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