Between about 1815 and 1860, the US shifted from a mostly farm-and-workshop economy to a national market economy. Historians call this the market revolution. Instead of making most of what they used, families increasingly produced goods to sell and bought what they needed.
Transportation drove the change. The Erie Canal (finished 1825) linked the Great Lakes to New York City and cut the cost of shipping freight from Buffalo by roughly 90 percent. By 1860 the country had about 30,000 miles of railroad track, most of it in the North.
Factories followed. In Lowell, Massachusetts, water-powered textile mills hired young farm women and ran on strict schedules. Interchangeable parts, often credited to Eli Whitney but developed largely at federal armories like Springfield, made mass production possible. After the Irish potato famine began in 1845, Irish immigrants filled many factory, canal, and railroad jobs, and many German immigrants settled in Midwestern farms and cities.
The South grew too, but differently. Whitney's cotton gin (1793) made short-staple cotton profitable across the Deep South, and by 1860 cotton made up more than half of US exports by value. Northern and British mills depended on cotton picked by enslaved people, so the regional economies stayed linked even as their societies diverged.
- Market revolution: The shift from local, mostly self-sufficient production to a national economy where people made goods for sale and bought what they needed.
- Erie Canal: A 363-mile canal completed in 1825 that connected the Great Lakes to the Hudson River and made New York City the country's leading port.
- Lowell system: A factory model in Massachusetts textile mills that employed young unmarried women, housed them in supervised boardinghouses, and paid them wages.
- Cotton gin: Eli Whitney's 1793 machine that quickly separated cotton fibers from seeds, which made cotton growing far more profitable.
The cotton gin was a labor-saving machine, so why did slavery grow after it was invented? It saved labor in cleaning cotton. As cleaning became cheaper, planters expanded cotton production onto new land and forced more enslaved people to plant and pick it.