Economic history of United States

Introduction

Historians have evaluated the economic history of American from different perspectives; sometimes they argue that the economic problems dominated the developments of American politics, even to the constitution writing. Those types of claims that the historian normally make get influenced by the theories of Marxist and have been to a huge extent been discredited. However, there can be no doubt the Americas economic development is in several ways main to people’s general evolution as a country. Even though, the first locomotive, steam engine and many among this textile machinery appeared first I England, the enhancement of technological advances on the huge scale happened in America.

The canal boom- American contained huge waterways, however, they did not cover for everything, and at the beginning of the 19th century people’s states started the projects of building canal that were designed to link various water bodies. The one that is the most known was the Erie Canal which was located in the New York. It got built under Governor Dewitt Clinton leadership. Plans were made, and the project started in the year 1917. Thos particular canal reached Albany to Buffalo and linked the great lakes with Atlantic through river Hudson.  The Erie Canal changed New York into the “Emporium of the western world”.  The famous metropolis turned into the center of America and ultimately the global commerce and remains so up to date. The Erie Canal coasted around $7 million, and it had branches built off the main canal. And the canal is still in use. The canal boom challenged the rest of the states and particularly the east and the north. Several canals were constructed in Ohio, however not every canal that was built brought profit.  Even after the railway roads started to complete, it was easy to move large goods using the canals than by use of any other means.

Financing system- the private investors contributed money, especially when the communities they came from were in a position of benefiting from the profits.  The long east-west rail lines and the canal construction normally needed some funding from the public that is the investments, exemption from tax and loans. Farmers got affected by the canals and the railway roads in that they opened new regions and that gave them the access to the global market. The canals and the railway lines location assisted in determining which land would get cultivated profitably. The companies of the railroad formed farms by selling their grants of farms as the sites for the farms. The cost of farm produce was high. However, the labor for the farms was scarce. The machinery seemed to relieve the shortage of labor. The mechanical reapers and the steel plows decreased the time and the labor needed in planting and harvesting.

In the years between 1820 and 1860, the slavery in America was seen as a benevolent system. Even though the masters of the slaves change, the employees of America reacted to the technology with ambivalence, fear of their salary getting cut and loss of status and independence. The American industry growth needed particular advances in technology which included the cotton gin, factory system and the steam power. After the technology evolution, the workload of the slaves was reduced. Their salary was reduced, and they did not react well to that, their relationship with their master changed to a bit better, but they did not like the fact that the reduction of workload reduced their wages.