Market Revolution

Definition

The Market Revolution was a profound transformation of the American economy and society that occurred in the early-to-mid 19th century. It involved the shift from a primarily agrarian, self-sufficient economy to a more industrialized, market-based economy driven by the production and exchange of goods and services.

5 Must Know Facts For Your Next Test

1. The Market Revolution was fueled by the rise of new technologies, such as the cotton gin, water-powered factories, and the steamboat, which increased productivity and allowed for mass production of goods.
2. The development of a national transportation network, including canals, railroads, and roads, connected previously isolated regions and facilitated the exchange of goods across the country.
3. The growth of banks, stock exchanges, and other financial institutions supported the expansion of the market economy by providing capital and credit to entrepreneurs and businesses.
4. The Market Revolution led to the rise of a new middle class of merchants, manufacturers, and professionals, who benefited from the economic opportunities created by the market economy.
5. The Market Revolution had significant social and political impacts, contributing to the rise of Jacksonian democracy and the increasing power of the federal government in regulating the economy.

Review Questions

• Explain how the Market Revolution was connected to the process of early industrialization in the Northeast.
  • The Market Revolution was closely tied to the process of early industrialization in the Northeast. The rise of new technologies, such as the cotton gin and water-powered factories, enabled the mass production of goods, which in turn fueled the growth of a national market for these products. The development of a transportation network, including canals and railroads, facilitated the movement of these goods across the country, connecting previously isolated regions and allowing for the exchange of goods on a larger scale. This increased productivity and the availability of goods drove the growth of a market-based economy, which was a key feature of the Market Revolution.
• Describe how the Market Revolution contributed to the development of a vibrant capitalist republic in the United States.
  • The Market Revolution was a driving force behind the emergence of a vibrant capitalist republic in the United States. The growth of banks, stock exchanges, and other financial institutions provided the capital and credit necessary for entrepreneurs and businesses to expand and invest in new technologies and production methods. This, in turn, led to the rise of a new middle class of merchants, manufacturers, and professionals who benefited from the economic opportunities created by the market economy. The increased economic activity and wealth generated by the Market Revolution also contributed to the growing power and influence of the federal government, as it sought to regulate the economy and support the expansion of the market.
• Analyze how the Market Revolution influenced the political style and the rise of American democracy during the Jacksonian era.
  • The Market Revolution had a significant impact on the political style and the rise of American democracy during the Jacksonian era. The growth of a market-based economy and the emergence of a new middle class challenged the traditional political power structures dominated by the elite. This, in turn, contributed to the rise of Jacksonian democracy, which emphasized the rights and interests of the common people over the privileged few. The Market Revolution also increased the power and influence of the federal government, as it sought to regulate the economy and support the expansion of the market. This led to a shift in the political style, with the federal government playing a more active role in shaping the economic and social landscape of the country, and the rise of a more populist and democratic political culture.

Related terms

Industrialization: The process of developing manufacturing and mechanized production, which was a key driver of the Market Revolution.

Capitalism: An economic system based on the private ownership of the means of production and the creation of goods or services for profit in a largely market economy.

Transportation Revolution: The rapid expansion of roads, canals, and railroads that facilitated the movement of goods and people, enabling the growth of a national market.