The Development of the American Economy Worksheet

Name: HIS-144: The Development of the American Economy Worksheet 1. Explain Henry Clay’s American System. How did this promote a spirit of nationalism in America? (200-300 words) Henry Clay’s American system was inspired by nationalism and essentially was formed to promote nationalism by bringing balance to the economy and not just in terms of commerce, but agriculture and industry as well. Clay’s system was based off of three main factors which are a tariff, subsidies, and a national bank to control commerce. In an article describing Henry Clay’s system a section reads, “Henry Clay's "American System," devised in the burst of nationalism that followed the War of 1812, remains one of the most historically significant examples of a government-sponsored program to harmonize and balance the nation's agriculture, commerce, and industry. This "System" consisted of three mutually reinforcing parts: a tariff to protect and promote American industry; a national bank to foster commerce; and federal subsidies for roads, canals, and other "internal improvements" to develop profitable markets for agriculture,” (senate.gov, 2020). His idea promoted nationalism because his American System appealed to the majority and essentially adhered to everyone in the nations needs and interests. Henry Clay’s American System still to this day is considered one of the greatest government sponsored examples of an organization that would aim to balance the economy and promote nationalism to America. 2. Discuss America’s transportation revolution in the first half of the 1800s. What role did government play in the development of roads, canals, railroads, and steamboats? (200300 words) Firstly, the overall construction of roads, canals, railroads, and steamboats would not have been possible without the help of the federal government’s and all of the United States. In the beginning of the 1800s, loads of American’s were on the move but not like their ancestors before them, people were able to make the long trek from the eastern states to the newly found west that had so much to offer with roads, canals, and railroads. In the textbook a section discussing the transportation revolution reads, “Recognizing the importance of speedy transportation, in the years after 1800 some states began internal improvements. They financed, for the most part through tax dollars, the construction of toll roads, canals, and other modes of transportation. This funding sparked four eras of transportation innovation (1) the turnpike era, (2) the canal era, (3) the steamboat era, and (4) the railroad era,” (Schultz, 2018). America’s transportation revolution in the 1800s was the pinnacle of what America would eventually industrialize into. The different transportation routes opened new doors for trading goods as well 1 as a way for people to get from point A to point B without having to travel by foot like their predecessors did. 3. Identify three major industries (not including the railroad) of America’s Industrial Revolution after the Civil War. What made the men that controlled them so successful? (200-300 words) Besides railroads, cotton, steel, and petroleum were a few major industries that played a big role in the industrialization of America. Steel made it possible to construct the railroads in the first place so essentially without steel the creation of those railroads would not have been possible. Petroleum, or crude oil, was another big industry in the 1800s and it was pretty much controlled by a man named John D. Rockefeller. Rockefeller sought to control the oil industry and by doing that he had the help of all other oil companies and essentially eliminated the issue of competition. Cotton eventually became the biggest industry in the United States especially in the South, and majority of cotton was manufactured through slave labor. In an article describing the cotton boom in the 1800s, a section goes on to reads, “By 1815, cotton was the most valuable export in the United States; by 1840, it was worth more than all other exports combined. But while the southern states produced two-thirds of the world's supply of cotton, the South had little manufacturing capability, about 29 percent of the railroad tracks, and only 13 percent of the nation's banks. The South did experiment with using slave labor in manufacturing, but for the most part it was well satisfied with its agricultural economy,” (Arrington, 2020). The factor that made these men who controlled the steel oil and cotton industries was power. These men had power over the other industries almost forcing them to work with guys like Rockefeller in order to make a profit rather than compete and more than likely lose profit. The power these industry leaders had is what led them to being so successful in the end. 4. Explain the importance of the transcontinental railroad. In what ways did the transcontinental railroad change America? (200-300 words) The transcontinental railroad was extremely important to America and surrounding countries and it would prove to change America for the better for good. On May 10, 1869 a railroad baron by the name of Leland Stanford put in a ceremonial gold side to honor the completion of the transcontinental railroad which was the combination of the central park railroad the union pacific railroad. This railroad benefited America in so many ways starting from minimizing the difficulty of cross country travel to cross country trade, the transcontinental railroad made dreams possible. The west became more important once the railroad was created, it turned a state like California from an isolated state to a major political and economical force. Other than that, the major change from the fact that it was able to efficiently facilitate international trade. In an article describing the changes the transcontinental railroad made to America a section reads, “By 1880, the transcontinental railroad was transporting $50 million worth of freight each year. In addition to transporting western food crops and raw materials to East Coast markets and manufactured goods from East Coast cities to the West Coast, the railroad also facilitated international trade,” (Kiger, 2019). All in all, the transcontinental railroad was of vast importance to the industrialization of America and proved to change the country forever. 2 5. Explain the origins and growth of early labor unions in the United States. In what way did they change America? (200-300 words) Labor unions came to be back in the eighteenth century and are still around today. Labor unions are beyond crucial to workers rights and have been since the beginning. They changed America by ensuring all workers were protected by rights and had certain benefits for the work they do. Labor unions were created because back in the eighteenth century there was a huge boom in workers in the workplace most of which still needed representation, therefore, labor unions were created to compensate for this. They changed America by their ideas and never ending strut for worker equality and worker rights. In an article explaining the importance of labor unions a section reads, “In the United States history of unions, early workers and trade unions played an important part in the role for independence. Although their physical efforts for the cause of independence were ineffective, the ideas they introduced, such as protection for workers, became part of our American culture,” (unionplus.org, 2020). It is crucial to realize the importance of labor unions to workers across the country from the eighteenth century to now because without labor unions a lot of workers would not be protected by certain rights which makes the workplace a controversial place to make money. 3 https://www.senate.gov/artandhistory/history/common/generic/Speech es_ClayAmericanSystem.htm Arrington, B. (2020). Industry and economy during the Civil WAR (U.S. National PARK SERVICE). Retrieved February 27, 2021, from https://www.nps.gov/articles/industry-and-economy-during-the-civilwar.htm Kiger, P. (2019, September 04). 10 ways the transcontinental Railroad Changed America. Retrieved February 27, 2021, from https://www.history.com/news/transcontinental-railroad-changedamerica 4