Focus Question: Why didn’t the South industrialize?
Hamilton’s tariff plan to protect NASCENT industry applied to the whole country. Only one section of the country took advantage of this. Why?
(Tariffs at algebraic exercise)
British and Dutch industrialize first.
The floor price at which a company can afford to sell a “WIDGET” is a combination of Raw Materials + Wages + Dept payment + Transportation cost
RW + W + D + T = floor price – add in profit.
NASCENT companies have debt payment; mature companies have paid off the debt and thus can sell at a lower price: R + W + T
When Hamilton wants America to industrialize, British companies have paid off their debt but have double the transportation cost. American companies cannot be born without a TARIFF umbrella.
Hamilton only wants tariff until start up debt is retired; does not anticipate that in a democracy, companies will still want a tariff umbrella once debt is paid off – protective tariffs start protecting profit.
(Walk through widget company example)
Draw a line through the paper. We are going to make a graphic organizer.
What does industrialization ENTAIL?
Draw factory on board.
What do we need for this factory?
Kids brainstorm with a partner and write on the board. (Controlled chaos?)
Laborers – sectional differences
Lowell system - girls who want to earn some money before marriage or are sent because of economic pressure on northern family farms. Northern farming (poor, rocky soil) cannot compete with McCormick reaper-driven NW agriculture (Touch on the other two elements of the economic innovation trilogy – cotton gin for south and interchangeable parts for north). Disparity increased with canal system development.
Highlight immigration during discussion.
Almost all immigrants go to North (Exception: 48ers to NW)Why?
Particularly the Irish (link to Columbian exchange w/potato famine)
Viscous cycle: Immigrants go for jobs, provide labor, allow more industrialization, which provides more jobs, etc.
Labor conditions also an issue: Why would a NW citizen work for someone else?
South: Expense of gears makes slave factory labor dangerous. Historiographical interpretation of slaves' "clumsiness and stupidity" in breaking agricultural tools. Slaves have to be fed whether they work or not and have no stake in the master making money. "Monkey Wrench"
Define: Money available for investment
Capital concentrated in North. Why?
Merchant tradition in North: Capital readily available
NW settler demographics
Slavery: “Land poor” Rich do not have money available: land and slaves. Cash flow issue.
Source of power in early 1800s is water power
Why is water power more available in North (Appalachian distance from coast)?
Kinetic energy released by fall of water is exponential NOT arithmetic
Show how water changes cultural geography of North. (Lowell girls)
Look ahead at how changes in power source change
Steam power makes industry independent of geography: Now cities will cluster around labor supply and goods transportation.
Overview of power technology
Horsepower (Daddy’s SUV joke)
Electricity (delivery by wires; some still generated with water or steam)
North: Cash economy, large middle class, even lower class can buy goods when paid in wages.
South: Tiny middle class. Poor can’t afford to buy: Reliance on homespun.
Link to Healy’s class and aristocracy.
Plantation owners believe commerce is somewhat dirty and beneath them. (TJ: farmer is ideal citizen).
Poor southerners APING upper class.
No Southern middle class to speak of. Gap that comes from Headright system (Ripple dance). Middle class that does exist is PROFESSIONAL, not ENTREPRENEURIAL. Best and brightest Southerners go into the clergy, law, medicine, or the military. Best and brightest Northerners start businesses.
North: Protestant work ethic – long since shifted toward commercial mindset. Innovative society as ripple effect of Puritan culture.
Northwest: Farmers (traditionally resistant to TIME DISCIPLINE). Lack of need since independence possible. Later, self-identification as NOT factory workers: Yeoman tradition. 48er influence?
Where were cities?
North: Atlantic Ports
South: Fall line
NW: Very few; transport hubs
South has initial advantage because of wide rivers and fall lines distant from the ocean.
North: Small streams, close fall lines.
Not enough to deter Northern industry or jump start Southern industry (other factors review)
And then the gap closes and the North pulls ahead
Private/public toll roads (reinforce corduroy term): Driven by Northern industrial development
Railroads (unanticipated technology bankrupts canals)
Sections drift apart.
N and NW linked by food/manufactured goods.
Shift to Sectionalism chart
Clay tried to bind sections together, but sectional political, economic, and cultural differences grow.