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By the end of this section, you will be able to:
  • Explain the role of the putting-out system in the rise of industrialization
  • Understand industrialization’s impact on the nature of production and work
  • Describe the effect of industrialization on consumption
  • Identify the goals of workers’ organizations like the Working Men’s Party
A timeline shows important events of the era. In 1807, Robert Fulton builds the first successful steamboat; an illustration of a steamboat traversing a waterway is shown. In 1813, Francis Cabot Lowell founds the Boston Manufacturing Company; an engraving of the Boston Manufacturing Company buildings and environs is shown. In 1819, a bank panic leads to depression. In 1825, the Erie Canal opens; an early nineteenth-century map depicting the western United States is shown. In 1831, Cyrus McCormick invents the mechanical reaper, and the Mohawk and Hudson Railroad begins service; a drawing of McCormick’s mechanical reaper is shown. In 1838, Samuel Morse first demonstrates the telegraph; an illustration of a telegraph is shown. In 1841, P. T. Barnum’s American Museum opens in New York City.
(credit “1807 photo”: Project Gutenberg Archives)

Northern industrialization expanded rapidly following the War of 1812. Industrialized manufacturing began in New England, where wealthy merchants built water-powered textile mills (and mill towns to support them) along the rivers of the Northeast. These mills introduced new modes of production centralized within the confines of the mill itself. As never before, production relied on mechanized sources with water power, and later steam, to provide the force necessary to drive machines. In addition to the mechanization and centralization of work in the mills, specialized, repetitive tasks assigned to wage laborers replaced earlier modes of handicraft production done by artisans at home. The operations of these mills irrevocably changed the nature of work by deskilling tasks, breaking down the process of production to its most basic, elemental parts. In return for their labor, the workers, who at first were young women from rural New England farming families, received wages. From its origin in New England, manufacturing soon spread to other regions of the United States.

From artisans to wage workers

During the seventeenth and eighteenth centuries, artisans —skilled, experienced craft workers—produced goods by hand. The production of shoes provides a good example. In colonial times, people bought their shoes from master shoemakers, who achieved their status by living and working as apprentices under the rule of an older master artisan. An apprenticeship would be followed by work as a journeyman (a skilled worker without his own shop). After sufficient time as a journeyman, a shoemaker could at last set up his own shop as a master artisan. People came to the shop, usually attached to the back of the master artisan’s house, and there the shoemaker measured their feet in order to cut and stitch together an individualized product for each customer.

In the late eighteenth and early nineteenth century, merchants in the Northeast and elsewhere turned their attention as never before to the benefits of using unskilled wage labor to make a greater profit by reducing labor costs. They used the putting-out system    , which the British had employed at the beginning of their own Industrial Revolution, whereby they hired farming families to perform specific tasks in the production process for a set wage. In the case of shoes, for instance, American merchants hired one group of workers to cut soles into standardized sizes. A different group of families cut pieces of leather for the uppers, while still another was employed to stitch the standardized parts together.

This process proved attractive because it whittled production costs. The families who participated in the putting-out system were not skilled artisans. They had not spent years learning and perfecting their craft and did not have ambitious journeymen to pay. Therefore, they could not demand—and did not receive—high wages. Most of the year they tended fields and orchards, ate the food that they produced, and sold the surplus. Putting-out work proved a welcome source of extra income for New England farm families who saw their profits dwindle from new competition from midwestern farms with higher-yield lands.

Questions & Answers

What are the factors that affect demand for a commodity
Florence Reply
differentiate between demand and supply giving examples
Lambiv Reply
differentiated between demand and supply using examples
Lambiv
what is labour ?
Lambiv
how will I do?
Venny Reply
how is the graph works?I don't fully understand
Rezat Reply
information
Eliyee
devaluation
Eliyee
t
WARKISA
hi guys good evening to all
Lambiv
multiple choice question
Aster Reply
appreciation
Eliyee
explain perfect market
Lindiwe Reply
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
Ezea
What is ceteris paribus?
Shukri Reply
other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Kelo
yes,thank you
Shukri
Can I ask you other question?
Shukri
what is monopoly mean?
Habtamu Reply
What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
ok
Shukri
how do you save a country economic situation when it's falling apart
Lilia Reply
what is the difference between economic growth and development
Fiker Reply
Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
Abdisa Reply
any question about economics?
Awais Reply
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
thank you so much 👍 sir
Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
Feyisa Reply
Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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