There were many changes in the United States during the 19th century that impacted the economy of the United States. Events such as urbanization and war affected the economy. Changes in the government also translated to changes in the economy.

The Industrial Revolution lasted from 1820 to 1870 in the United States. The Industrial Revolution changed the economy from handmade production of items to machine and factory production.

Watch the video below and answer the questions that follow:

This activity might not be viewable on your mobile device.Video segment. Assistance may be required.The Industrial Revolution

  1. Based on the information in the video, what does agrarian mean?

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    AgriculturalClose Pop Up
  2. What invention was the most important to the Industrial Revolution?

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    The moving assembly lineClose Pop Up

Several inventions contributed to the change in the economy.

Image of a cotton gin

Source: Cotton Gin EWM2007

The invention of the cotton gin (pictured above) byInteractive popup. Assistance may be required. Eli Whitney transformed the economy of the South. It decreased the need for slave labor and increased the speed of cotton production.

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The Industrial Revolution's introduction into the United States was caused in part by the Embargo Act of 1807 and the War of 1812. Even though Great Britain was the primary target, the Embargo Act stopped all exports from America and imports from other nations. Tensions from this economic restriction eventually led to the War of 1812, a conflict between the United States and Great Britain. The war exposed America's need for a better transportation system and more economic independence. Therefore, manufacturing in railroads, shipbuilding, and other related industries began to increase.

The government responded to this industrial growth by enacting protective tariffs designed to help even the playing field between American and British manufacturers who competed in the sale of cotton and agricultural goods.

Activity: Read the following statements about the economy of the 19th century and determine if each represents an advantage or disadvantage of the free enterprise system of the 19th century. Drag each statement to the correct column.

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