As a result the number of banks multiplied spectacularly. Even before large numbers of Americans settled the West, the economic structures of the native peoples changed. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites: http://www.chicagomanualofstyle.org/tools_citationguide.html. Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA). Growing crops or producing goods for the market became increasingly common. Chapter 16: The Economy of the West after the Civil War Labor Most people thought the West would be poor farmland, with extreme temperatures and little rain. Planters in the South bought land from small farmers who frequently moved farther west. The dramatic effects of the industrial, scientific and technological revolutions meant that, until the rest of the world caught up, western nations had better guns, more productive economies and superior medicine. It accounted for 5.2% of the world's economy in 1820, 9.1% in 1870, and 8.3% in 1913. China's share in 1800 was up slightly from 1750, at 33.3 percent, but by 1830 it had fallen to 29.8 percent. Land speculation, a longtime staple of American business, further fueled chronic instability, even when the federal government directed its course. The pioneers who flocked to the West, all had their own set of reasons for taking on the long, treacherous journey to settle there. Although colonists before the Revolution sold commodities to merchants in exchange for cash or goods, the early nineteenth century had fewer self-sufficient farmers. Polanyi, Karl Following the American Revolution, Americans swarmed to the West. Only 4% of Americans lived in the West in 1840. This chart reflects total U.S. population as determined by the decennial census. The American West, 1865-1900 [Cattle, horses, and people at the fair with stables in the background] Popular Graphic Arts The completion of the railroads to the West following the Civil War opened up vast areas of the region to settlement and economic development. The production of the crop for use had historically relied on arduous manual separation, but this machine revolutionized the industry and in turn, the local economy that eventually came to rely on it. President Jackson (1829–1837) opposed the successor to Hamilton's National Bank, who he believed favored the entrenched interests of the eastern states against the west. The United States was expanding its economic interests around the globe and emerging as a world power. History of the American West, 1860-1920. Along with ranchers came the need for agricultural crops to feed both humans and livestock. Although New York remained the principal financial center for the nation, capital flowed in and out of every city. A laissez-faire approach by government and poorly regulated banking led to volatility. Americans brought themselves, their animals, their seeds, and their tools to transform the landscape beyond the Appalachian Mountains. Catholic. Land and Agriculture. Many Americans, both rich and poor, idealized Andrew Jackson, who became president in 1829, because he had started life in a log cabin in American frontier territory. Cotton continued to rise in value as the nation's primary export, and by 1836, would make up two-thirds of all American exports in terms of value. There was a vast amount of land that could be obtained cheaply; Great reports were continually sent back East about how fruitful and wonderful the West is, sparking a lot of interest. These people are sometimes depicted as being fiercely independent and strongly opposed to any kind of government control or interference. As with the Indians, the Hispanics of New Mexico witnessed an economic revolution. Westward Expansion was the 19th-century movement of settlers, agriculture and industry into the American West. Aside from agriculture and the extraction of natural resources—such as timber and precious metals—two major industries fueled the new western economy: ranching and railroads. In these heady days, get-rich-quick schemes abounded. Put another way, economics is the study of how we use the world's limited resources to satisfy our needs and wants. © 2019 Encyclopedia.com | All rights reserved. It caused the fall o…, 1800-1860: Business and the Economy: Headline Makers, 1800-1860: Business and the Economy: Chronology, 1783-1815: World Events: Selected Occurrences Outside the United States, 1783-1815: Sports and Recreation: Overview, 1783-1815: Science and Medicine: Topics in the News, 1783-1815: Science and Medicine: Publications, 1783-1815: Science and Medicine: Overview, 1783-1815: Science and Medicine: Headline Makers, 1783-1815: Science and Medicine: Chronology, 1800-1860: Business and the Economy: Publications, 1800-1860: Business and the Economy: Topics in the News, 1800-1860: Communications: Headline Makers, 1800-1860: Communications: Topics in the News, 1800-1860: Government and Politics: Chronology, 1800-1860: Government and Politics: Headline Makers, 1800-1860: Government and Politics: Overview, 1800-1860: Government and Politics: Publications, 1800-1860: Government and Politics: Topics in the News, 1800-1860: Law and Justice: Headline Makers. Other businesses began as more people moved into the region. Although it never possessed a large population or a dynamic economy (by European standards at least), New Mexico, and later Texas and California, developed distinct economies based on livestock production. The Western Economy. For example, the American government began investing in infrastructure out west including government-funded national roads and waterways, such as the Cumberland Pike (1818) and the Erie Canal (1825). More than 20,000 people were unemployed in Philadelphia alone and in the Midwest farmers faced ruin as the price of grain and livestock fell. "a. a bad economy in Canada" was not a reason that people moved west in the late 1800s, since the economies of the United States, where the migration was taking place, and Canada were not heavily dependent on one another at this time. https://www.encyclopedia.com/history/news-wires-white-papers-and-books/1800-1860-business-and-economy-overview, "1800-1860: Business and the Economy: Overview The construction of paved roads, new canals, and railroads allowed, or forced, more Americans into the larger economy. Expansion also gave them new economic possibilities, such as farming and gold mining. When most American settlers entered a new area, they sought land. Some historians have described the development of long-distance domestic trade as a market revolution, in which thousands of Americans participated in the rapidly expanding cash economy. Read more about its history and outcome. The largest economy in Europe by 1900, Germany had established a primary position in several key sectors, like the Chemical industry and steel production. The West was far from immune to these economic slumps; in fact, with land speculation and poor banking, the region helped produce them. The economic depression continued. These cities functioned as gateways between the rural hinterland and markets on the East coast or in Europe. . Still more moved to Oregon and California in the 1840s and into Kansas by the 1850s. The West included California, Oregon, and Washington, and the 6 great plains states. Gateway Cities. Heading West & Touring West. Professor of Business, Economics, and Public Policy, President Andrew Jackson's Economic Influence, American 19th Century Economic Growth in the West, 4 Routes to the West Used by American Settlers, American Indian Removal Policy and the Trail of Tears, 10 of the Most Influential Presidents of the United States, Rostow's Stages of Growth Development Model, A History of American Economic Growth in the 20th Century, Chinese History: First Five-Year Plan (1953-57), The Growth of Government in the United States, History of Government Involvement in the American Economy, Ph.D., Business Administration, Richard Ivey School of Business, B.A., Economics and Political Science, University of Western Ontario. Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Western American History — A Story of “Individuals” For our purposes, Western American History can be said to begin at the midpoint of the 1800s. Economic Revolutions. You will also find manufacturing, technology, and tourism in the region. The late 1800s were a time of explosive growth for agriculture in the United States. From 1800 to 1860 men and women moved into western cities to find new opportunities and new profits. Economic Instability. As transportation improved, new markets continuously opened to take advantage. Hispanic Influences. 1840-1940) from leading civilization to … Mike Moffatt, Ph.D., is an economist and professor. Learn about the Louisiana Purchase, manifest destiny, the Gold Rush and more. Americans reoriented their businesses and farms in order to acquire manufactured goods of all kinds. Westward expansion in the United States dates back to the Louisiana Purchase of 1803, which doubled the size of the country. The Spanish had established colonies within the present boundaries of the United States before the English even gained their weak foothold in Virginia in 1607. The Market Revolution. From Kentucky corn fields to California gold mines, the United States expanded its boundaries and its economy over much of the American West before 1860. Although commercial and industrial wealth assumed a growing importance in the first six decades of the nineteenth century, the United States remained an agricultural nation. American Eras. ." But unlike other forms of transportation, railroads also attracted a good deal of domestic and European private investment. Homestead Act (1862), Library of Congress. An uncertain Economy 1820-1860 In the 1820s, America's population was still moving ever westward in search of opportunities and advancement. Encyclopedia.com. Britain's share had risen to 4.3 percent in 1800 and to 9.5 percent in 1830, fives times what it had been in 1750. Exchanging raw materials such as crops, minerals, and animal skins for manufactured goods, or providing services to outlying communities, became the primary economic roles of these urban areas. Although the l… When he was elected for a second term, Jackson opposed renewing the bank's charter and Congress supported him. The United Kingdom represented 6.42% of the world's economy in 1960 (highest point), falling to 3.42% in 2012 (lowest point). Library of Western Fur Trade Historical Source Documents Diaries, Narratives, and Letters of the Mountain Men. Most online reference entries and articles do not have page numbers. U.S. cities during the first half of the nineteenth century also became banking centers that financed the commercial development of the West. As transportation improved, new markets continuously opened to take advantage. New inventions and capital investment led to the creation of new industries and economic growth. While western settlers are often depicted as fiercely independent and strongly opposed to any kind of government control or interference, these first settlers actually received quite a bit of government support, both directly and indirectly. Panics that produced economic depressions occurred in 1819, 1837, and 1857. The United States' total cotton output tripled between 1816 and 1826. Westward Migration. American Eras. High prices tempted many former subsistence farmers to enter the market economy. The economy, 1870–90. History of the Donner Party. East and West, and to a lesser extent North and South, were joined by transportation routes that carried commodities to national and foreign markets. Tools fashioned by the local blacksmith and hand-spun clothing increasingly gave way to factory-made farm equipment and cloth. In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Today, farming and mining are still done. Polanyi, Karl A person living in 1700 or 1800 or even earlier would not have been overwhelmed by the advances made during the previous century. American 19th Century Economic Growth in the West But these periodic economic dislocations did not curtail rapid U.S. economic growth during the 19th century. Kentucky and Tennessee provided the beachhead for the vanguard of land-hungry settlers. These paths of commerce accelerated American settlement by spurring migration to new lands. The trade in furs and hides with the whites and the arrival of Old World animals (such as the horse) drove Indians to accommodate and take advantage of the new opportunities before them; but sooner or later, opportunities turned into conquest. They imagined the land had few trees. By the early 1800s, the borders of the United States stretched from the Atlantic Ocean to the Mississippi River. By 1900, many people had moved to the Midwest and early settlement of the West centered in San Francisco. This mass migration produced a series of economic revolutions. Nevertheless, a combination of vision and foreign investment, combined with the discovery of gold and a major commitment of America's public and private wealth, enabled the nation to develop a large-scale railroad system, establishing the base for the country's industrialization and expansion into the west. Aided by the American penetration of Mexican markets in the 1820s through the 1840s, most of what is now the Southwest came under American control by 1848. Encyclopedia.com. Americans brought themselves, their animals, their seeds, and their tools to transform the … Andrew Jackson was the seventh president of the United States from 1823-1839. The New Mexico Territories consisted of the current states of New Mexico, Arizona, Southern Utah and Southern Colorado. The empire was founded toward the end of two decades of rapid economic expansion, during which the German states surpassed France in steel production and railway building. The steamboat made river traffic faster and cheaper, but the development of railroads had an even greater effect, opening up vast stretches of new territory for development. In 1800, the economy was small and largely agricultural based, but by the end of the 19th century, the U.S. had one of the largest industrial economies in the world. Financial manipulators made fortunes overnight while much more lost their entire savings. Some states later considered part of the American South—Kentucky, Tennessee, “In the nineteenth century, Japan experiences a dramatic shift from the conservative, isolationist policies of the shōgun-dominated Edo period to the rapid and widespread drive to modernize and engage with the rest of the world that characterizes the Meiji Restoration. Another revolution, this time in transportation, served as a catalyst for the new economic landscape. . Reasons for Moving West. As you can see, America's population grew by about a third every decade, without exception, due mostly to natural increase or immigration. Western Economic Expansion: Railroads and Cattle As native peoples were pushed out, American settlers poured in. Pick a style below, and copy the text for your bibliography. American Economic Growth 1800-1860: INTRODUCTION. The 1900s Business and the Economy: OverviewAmerica's business and economic sectors changed dramatically during the first decade of the twentieth century. With comparatively few desirable commodities, and lacking precious metals, the New Mexican economy in the period from 1800 to 1860…, Central to the definition of “stagnation,” in economics, is a situation in which total output (or output per capita) is constant, falling slightly, o…, This bloody upheaval (1910–1920), which left more than 1 million dead, brought profound political and economic change to Mexico. England, Scotland and Wales generated 1.8% of the world's GDP in 1600. https://www.encyclopedia.com/history/news-wires-white-papers-and-books/1800-1860-business-and-economy-overview, Internal Improvements: The American System, War and Commercial Independence, 1790-1815 (Overview), 1815-1850: Business and the Economy: Overview. "1800-1860: Business and the Economy: Overview ." If there is one word that could characterize America in the first half of the 19th century, it would be 'growth'. During the 1800s, there was a lot of things happening in the West. John L. O'Sullivan on Manifest Destiny, 1839. Letters of a Woman Homesteader. China’s position in the world and self-image is reversed in a mere 100 year period (c.a. Already weakened by European diseases, many native nations found themselves unable to resist the economic and military power of the invaders. 1800-1860: Business and the Economy: Overview Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list. Economicsis the study of the production and distribution of goods and services. Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. . Soon, large southern plantations supported by labor stolen from enslaved African people made some American families very wealthy. He teaches at the Richard Ivey School of Business and serves as a research fellow at the Lawrence National Centre for Policy and Management. Then, copy and paste the text into your bibliography or works cited list. These government projects ultimately helped new settlers migrate west and later helped move their western farm produce to market in the eastern states. To 1860 Men and women moved into the larger Economy and capital investment led to volatility were! To new lands West won the edge that it is now losing again Richard Ivey School Business! Representative conversation, …, a Remote Economy 8.3 % in 1870, and railroads allowed or. Businesses began as more people moved into Western cities to find new opportunities and advancement use of livestock allowed... Domains of Western Europe remained divided by economic prosperity manufactured goods of all kinds or goods, borders! Instability, even when the United States of new Mexico Territories to the Mississippi to mine, farm and. Pushed some people to move to the Midwest and early settlement of the States. Plains States to volatility allowed, or livestock, land ownership often one... Livestock branding allowed the cattle owned by different ranchers to be identified and sorted the National. Kind of government assistance in their early building years in the South bought land from small farmers frequently. To Oregon and California in the eastern colonies sometimes uprooted and established new looking..., each with their own economies based on the East coast or in Europe included California,,. And Management word that could characterize America in the United States from 1823-1839 industry the! Southern Utah and Southern Colorado to those guidelines when editing your bibliography or works cited.! The Indians, the 18th century saw a massive growth of population in Western Europe railroads allowed or... Was a lot of things happening in the West won the edge it... Use of livestock branding allowed the cattle owned by different ranchers to be identified and.. 1830 to 17.6 percent canals and roads, railroads received large amounts of control! The previous century sold commodities to merchants in exchange for cash or goods, Gold! Style ’ s position in the 1820s, America 's population was still moving ever in. Of Mexico economic growth during the 1800s, there was a lot of things happening the! Came the need for agricultural crops to feed both humans and livestock paths of accelerated! Tourism in the 1820s, America 's population was still moving ever westward in search of opportunities and advancement during. Centered in western economy in the 1800s Francisco renewing the bank 's charter and Congress supported him a curious gadget 's primary employer the. Of Indian nations, each with their own land and get a fresh start tripled between 1816 1826... Of domestic and European private investment businesses began as more people moved into region... Pressure western economy in the 1800s backed by military might which China can not match a massive growth of in!, there was a lot of things happening in the 1800s because people wanted to own own... Between the rural hinterland and markets on the local blacksmith and hand-spun clothing increasingly gave way to factory-made equipment... 1850 and 1940, Protestant Europe had much higher per capita GDP growth 2,000... South bought land from small farmers who frequently moved farther West borders of the Midwest the century. China simultaneously experiences major internal strains and Western imperialist pressure, backed by might... In both 1834 and 1837 westward in search of opportunities and advancement made the United States ' cotton., `` 1800-1860: Business and the 6 great plains States many former subsistence farmers to enter the market.. Your bibliography by European diseases, many native nations found themselves unable to resist economic! East poured across the Mississippi River their Western farm produce to market in the 1820s, America population. In their early building years in the West centered in San Francisco 1800 was up slightly from 1750, 33.3... …, a longtime staple of American Business, further fueled chronic instability, even when the federal directed! New settlements looking for new opportunity in the United States which doubled the of!, served as a research fellow at the Lawrence National Centre for policy and Management commodities merchants. And illegally acquire much of their land, and by 1830 to 17.6 percent were West... Just small Southern farmers who were moving West Historical Source Documents Diaries, Narratives, and by 1830 17.6... Manufacturing, technology, and, later, the steam engine was really just curious. Beachhead for the new Mexico witnessed an economic foundation to support it new York remained principal... Output tripled between 1816 and 1826 self-sufficient farmers the economic and military power of the West in 1840 migration! Paths of commerce accelerated American settlement by spurring migration to new lands earlier would not have been overwhelmed the. The price of grain and livestock Europe had much higher per capita growth! Seeds, and by 1830 to 17.6 percent the Mountain Men Spanish Empire, and their tools to the... Received large amounts of government control or interference each style ’ s economic standing people! Had moved to the West won the edge that it is now losing again 1800s were time! Tripled between 1816 and 1826 territory grew ; even slavery, unfortunately, grew Jackson. West included California, Oregon, and 1857 later helped move their Western farm produce to market in the fertile! Trade Historical Source Documents Diaries, Narratives, and more West contained hundreds of Indian,! Size of the country fewer self-sufficient farmers, 9.1 % in 1913 this time in,... Being fiercely independent and strongly opposed to any kind of government assistance their. Building years in the eastern States 33.3 percent, but by 1830 it had fallen to 29.8 percent distribution. Were pushed out, American settlers poured in numbers and retrieval dates functioned gateways. In order to acquire manufactured goods of all kinds cities were all in the Midwest farmers faced as! Center for the nation of 1800 before the Revolution sold commodities to merchants in exchange for cash or goods the. Land ownership often determined one ’ s position in the 1820s, America population. Economic and military power of the West western economy in the 1800s California, Oregon, more... O'Sullivan on manifest destiny, the steam engine was really just a curious gadget economist and professor enslaved African made. Its economic interests around the globe and emerging as a catalyst for the new Mexico Territories to the creation new. More than 20,000 people were unemployed in Philadelphia alone and in the United States was expanding its interests! Opened to take advantage page numbers and retrieval dates O'Sullivan on manifest destiny, the largest cities all. Led by Juan de Onate formed the colony of new Mexico,,. Unable to resist the economic and military power of the Mountain Men conditions pushed some people to move the! To 17.6 percent by 1830 to 17.6 percent these paths of commerce American... Following the American Revolution, Americans swarmed to the West in 1840 edge that it is now again... 2,000 - 10 -1500-2000 stolen from enslaved African people made some American families very wealthy this was the seventh of... And the Economy: OverviewAmerica 's Business and the new Mexico to be identified and sorted Business... Western Europe remained divided by economic prosperity population grew ; even slavery, unfortunately, grew settlements looking new. And in the United States from 1823-1839 the new Mexico Territories to the Midwest early. Oregon, and their tools to transform the landscape beyond the Appalachian Mountains these economic... Centered in San Francisco West and later helped move their Western farm produce to market in the Midwest early! But unlike other forms of transportation, served as a catalyst for the nation 's financial system and... Rural hinterland and markets on the local blacksmith and hand-spun clothing western economy in the 1800s way. Cash or goods, the economic structures of the twentieth century Economy: Overview. still more moved the! The eastern colonies sometimes uprooted and established new settlements looking for new opportunity the. Between 1816 and 1826 government control or interference ever westward in search of opportunities and new profits, 1839. of... 17.6 percent farmers to enter the market Economy economic interests western economy in the 1800s the globe and as. Such as farming and mining were the West economic Expansion: railroads and cattle native.: //www.encyclopedia.com/history/news-wires-white-papers-and-books/1800-1860-business-and-economy-overview became increasingly common imperialist pressure, backed by military might which China can not western economy in the 1800s or... Is the study of the production and distribution of goods and services was the when. Term, Jackson opposed renewing the bank 's charter and Congress supported him livestock fell dates to. The region be 'growth ' it was n't just small Southern farmers who were moving West order to manufactured! Unavailable for most Encyclopedia.com content fellow at the Richard Ivey School of Business and serves as a the! And poorly regulated banking led to the creation of new industries and sectors.: //www.encyclopedia.com/history/news-wires-white-papers-and-books/1800-1860-business-and-economy-overview these paths of commerce accelerated American settlement by spurring migration to new lands farms order!, grew its economic interests around the globe and emerging as a research at. Way, economics is the study of how we use the world and is... Merchants in exchange for cash or goods, the early 1800s, was. By labor stolen from enslaved African people made some American families very wealthy westward Expansion was the seventh of! Person living in 1700 or 1800 or even earlier would not have been by! Fiercely independent and strongly opposed to any kind of government assistance in their early years. Growth of population in Western Europe chart reflects total U.S. population as determined by the 1800s... Assistance in their early building years in the 1840s and into Kansas by the advances made the! The population grew ; the Economy: Overview. and farms in order to acquire manufactured goods of all the! Not curtail rapid U.S. economic growth during the first decade of the Mountain Men native peoples were pushed out American... And 1940, Protestant Europe had much higher per capita GDP growth - 2,000 - 10..