Putting-out system

Definition

The putting-out system was a pre-industrial production method where materials were distributed to individuals or families who would then produce goods at home and return the finished products to a central merchant. This system allowed for decentralized manufacturing, enabling merchants to capitalize on the labor of rural workers while avoiding the costs associated with maintaining large factories.

5 Must Know Facts For Your Next Test

1. The putting-out system emerged as a response to the limitations of guild systems, allowing for more flexible and scalable production methods.
2. Merchants would provide raw materials to rural workers, who would then create finished goods like textiles and crafts, significantly boosting local economies.
3. This system facilitated a shift from agrarian economies to early forms of industrial production by increasing access to manufactured goods.
4. The putting-out system often led to social changes as it provided rural families with supplementary income, impacting labor dynamics and community structures.
5. Over time, the putting-out system was gradually replaced by factory-based production as industrialization progressed, leading to more centralized and mechanized manufacturing.

Review Questions

• How did the putting-out system contribute to changes in labor dynamics in early colonial America?
  • The putting-out system changed labor dynamics by allowing families in rural areas to participate in manufacturing while still engaged in agriculture. It provided an additional income source and shifted some economic power away from urban artisans and guilds, fostering a new class of rural producers. This shift encouraged self-sufficiency in communities and created a more diverse economy as people could now engage in both farming and craft production.
• Evaluate the impact of the putting-out system on the development of early industries in colonial America compared to European models.
  • The putting-out system in colonial America mirrored European practices but was uniquely adapted to local conditions. Unlike Europe, where guilds controlled production tightly, American merchants utilized this decentralized method to tap into rural labor forces effectively. This flexibility allowed for rapid growth in specific industries like textiles, setting the stage for an early form of industrialization that would differ significantly from European centralized factory systems.
• Analyze how the transition from the putting-out system to industrialization affected social structures within communities during this period.
  • As the economy transitioned from the putting-out system to industrialization, social structures within communities underwent significant transformations. The rise of factories drew people into urban areas for wage labor, disrupting traditional family-based production systems. This shift led to increased social stratification as factory owners gained wealth and power, while workers faced harsh conditions. Consequently, communities experienced a decline in communal ties and an increase in class consciousness, setting the groundwork for future labor movements and social reforms.

Related terms

cottage industry: A small-scale, home-based manufacturing system where individuals produce goods in their own homes, often using hand tools and simple machinery.

mercantilism: An economic theory that emphasizes the role of the state in managing international trade and accumulating wealth through a favorable balance of trade.

industrialization: The process of transforming economies from primarily agrarian to industrial, marked by the growth of factories, mechanized production, and urbanization.