Shrey Shah APUSH 11/1/17 Jigsaw Section C Commerce and Industry The Expansion of Business, 1820-1840 Business grew because of increase in population, transportation revolution, and new practices How did business change in America relating to each of the following? Retail Distribution Retail distribution became more efficient with specialty stores in cities Organization of business Individual and small merchant capitalist companies still dominated, but some larger businesses gave way to corporations Corporations - combined resources of large number of shareholders. Government involvement in business Businesses grew in the 1830s because states passed easy incorporation laws. Limited liability - stockholder risked only value of investment if …show more content…
Technology and demand (War of 1812) led to factories First factories began in New England textile industry with large water-driven machines that increased production of textiles. By the 1820s the factory system transformed the shoe industry, and ,by 1830s, the factory system spread throughout Northeast. By 1860, the value of manufactured goods were so cheap that they were roughly equal to that of agricultural goods. The largest manufacturers were located in the Northeast thus they had a large number of employees. Advances in Technology What were the various inventions and innovations that would assist in allowing America's economy to book? With developed industries relatively immature stateside, fine items came from England. But by 1840s rapid machine technology advances, sophisticated textile industry changed all of that Manufacture of machine tools, such as tools used to make machinery, were improved by the government Government supported research for military (early 19th century) turret lathe universal milling machine Better machine tools allowed for wide use of interchangeable parts Industrialization aided by new energy sources such as coal replaced wood and hydraulic