The Industrial Revolution
L
ET
’
S
R
EVIEW
1. Give amodern day example of what economicsmeans. Use any example of a good or service.
2. Give amodern day example of what it means to have a competitivemarket.
3. Give amodern day example of amonopolisticmarket.
4. Explain how the principles of supply and demand work using any product.
5. List the four conditions needed in order for an Industrial Revolution to occur.
6. When the Industrial Revolution occurred in Pennsylvania, what major change wasmade in the way many
people earned a living?
7. How did JamesWatt contribute to the Industrial Revolution?
How is the industrial revolution related to
Pennsylvania’s story? Until the American Civil War
(1861-1865), most people in our state earned their
living as farmers,
craftsmen,
or
merchants
. At that
time, Pennsylvania still had an
agricultural
economy.
That is, amajority of people farmed for their
livelihood. Most people lived in a log cabin on a few
acres of land. On this land, they raised nearly all the
food their families required. They grew cereal grains
such as rye, oats, barley, and buckwheat. Livestock
such as pigs, sheep, cows, chickens, and horses
providedmeat, wool, milk, eggs, and transportation.
Wood products from trees were used to create their
shelters and to burn as fuel. Furniture wasmade from
trees, but by skilled craftsmen. Womenmade clothing
fromwool, linen, and animal hides.
Immigration rapidly increased Pennsylvania’s
population. During themid-1800s, there was a
tremendous population explosion in our state. As a
result, there was a greater demand for products by
people. It became industry’s job to create a greater
supply of products tomeet this growing demand.
Slowly, during themid-1800s, business people
began to form companies and build factories tomass
produce their goods. This was the seed of the
Industrial Revolution. It was the beginning of a change
froman agricultural economy, where people provided
for themselves, to an industrial economy, where goods
weremanufactured for people to purchase. Hiring
factory workers also changed the way people earned a
living.
In Pennsylvania, certain conditions were
necessary in order for an industrial revolution to
occur. These factors were:
1. Adequate labor and natural resources.
2. Efficient transportation systems.
3. Sufficient capital (money) to build the
factories where goods are produced.
4. A sufficient market in which to sell the
goods or services.
It takes time andmoney for ideas to spread from
place to place. Recall that England had already
undergone an Industrial Revolution in the late 1700s
and early 1800s. JamesWatt paved the way for this
revolution in 1769 when he patented a greatly
improved steamengine that was quickly adapted to
many industrial uses in England. It tookmore than 20
years for the steamengine innovation to be adapted
to steamboats and steam locomotives in Pennsylvania
and the United States. Once this was done, industry
was revolutionized. The next lesson will explain how
Pennsylvania entered the Age of Big Business.
One of our
country’s greatest
waves of immigration
came during the
Industrial Revolution.
People fromall over the
world came to America to
work in our factories such
as the watch factory pictured
above. Some came for the
higher-paying wages in our
country. Others came to escape
the famine, persecution, and
other hardships they were
experiencing overseas.
The Economics of the Industrial Revolution
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