The First American Industrial Revolution.
Industrial Revolutions occur with the invention of new machinery that facilitates working conditions and in turn will change a nation's way of life. A series of sub revolutions take place and the final outcome is drastic. The first American Industrial Revolution is no different; it will forever alter the United States economy between 1815 and 1850. An economy once based solely on agriculture will totally change and become one based on industry and trade of finished goods.
Profit drives everything, so basic economic forces take place and 3 ways to increase profit appear. In order to increase profit more buyers are needed, a cheaper way to produce and a way to make more products are needed. Hamilton's economic plan, as well as the Federalist and Republican plans, is successful in generating cash for the economy. The profits are coming from bonds issued to US citizens and taxes on imported goods that are also being made on United States soil thus promoting national sales over international sales. This is the very beginning of the first of 4 sub revolutions the commercial revolution.
The war of 1812 made the nation aware of a need for better roads to transport troops and materials to defend itself. Most U.S. investors turned to international markets to invest. The idea of getting Americans to invest in America was born; this would help the economy and ensure success because effort would be placed in ventures money is involved. Madison, Henry Clay, John Calhoun had the idea of economic nationalism invest in America first and this is their plan. Institute a new National Bank the first bank was only to be in place for 20 years and after the time elapsed it was never renewed. The benefits were far too great to be overlooked. Protective tariffs were increased on more items these are taxes on imports that compete with products made in our country. To provide an improved and safer Nation, internal improvements are a must.
