Economy as the Major Factor of Development of Early American Republic - Essay Example

Economy as the Major Factor of Development of Early American Republic Economy as the Major Factor of Development of Early American Republic Introduction Economy was the key development platform for the early America republic. During this period the economy expanded greatly, especially with the nation turning from being agrarian into industrial. In 1790s, Washington and Hamilton were building a foundation for a strong national government, which was having a broad financial base1. The merchants and other financers were supportive and they were all over the country. There was vast development in agriculture too, the fertile land was brought to use especially in the vast western region. The population of the famers expanded as a result. In the 1840s, there was an explosive development in technology and networks infrastructures and communication, the telegrams, post offices and the printing industry. This paper provides an insightful analysis of the key economic and their significance in the early America republic. Role of the economy in the development of early American Republic Economic modernization gained momentum with the increase in cotton crop, which was very profitable in the south region, as well as the textile, and machine making industry to the north region2. The transport infrastructure developed greatly which facilitate the development of other sector especially the economy. There were also many visitors who came from the Europe, which increased the number of the immigrants who settled in the country. The immigrants also played a major role in the economy establishment of the Early America. There was a civil war in the 1850s because of crisis over slavery despite the Whigs warning that annexation of Texas would lead to this. Evidently, the economy was the key factor in the development of the early American republic, in this paper the key trading activities have been highlighted and how they benefited the republic. Economic development is always one of the major factors for the growth of any nation. Even in the early nations, this factor played an important role in one way or another to the development of the nation. This is the major source of revenue for most countries, the revenue is in turn used to develop other sectors especially the infrastructure. The early America republic had really suffered after the war, with so many of its infrastructure destroyed during the war. In 1789, George Washington was elected the first president set a government structure which had various departments like treasury, treasury and war3. The government was very quick to reestablish its financial state and rapidly all the war debts that it had. It did this trough the new tariffs and taxes. Economic activities throughout the American nation played a major role in the development of the nation as a whole. There were so many economic activities that took place in the city and the other part of the republic. The economic activities played a major role in boosting the country through payment of taxes. Merchants’ who were so many in the nation supported the government and its activities. The republic underwent so many economic changes which really helped the nation to set on foot. The industries were constructed as a result of this; they played an important role in the production of various goods for the population and the ready market. With these many economic activities the republic was able develop politically and its infrastructure The roots of the economic growth The economy of the America grew greatly after the civil war that happened in 1812. Robert Fulton invented a steam boat; this boat revolutionized the water transport4. The canals were built as a result, example the Erie Canal construction boosted the economic activities of the west since the southern and northern markets could be accessed. The eastern cities began using the railway which later became the major mode of transport in the region. The development of the transport facilities helped in reducing the cost of transportation of the good s to the market, the goods from the industry and agriculture reached the market on time. The telegraph also played an important role in the communication sector, there was ease and fast communication and the markets could be accessed with ease. The transport system enhanced an increase in the production of the cash crops cultivation; the crops could be transported to the market with ease. Iron plow and mechanical thresher also transformed the agricultural sector. The urban population grew because of the economic activities by 60% between the year 1812 and 18405. These developments set up a platform for other sectors to grow. The change in some of the government policies also boosted the development of the economic growth. The government by allowing the capitalism helped the merchants and other private owner do their trading captivities very effectively. Major economic activities in the early America The early American economy was dominated by the following: The rise of capitalism Capitalism was introduced in the early America republic with the private owners allowed to control the trade, industry and other means of production. The main goal was to allow them make profit. There were 2000 banks which were spread all over the republic6. These banks were allowed to create their own note. The printed currency was invested in land, mercantile activities, transport, and the production sectors. Hamilton started a program which allowed the federal government has a direct relationship with the banks. The government owned only 1/5 of the banks and the rest were owned by the private owners, all the banks were subjected to the same terms. The rise of corporations owned by private owners really helps in boosting the investments. Capitalism reached other sectors like the farms and workshops. Capitalism really played an important role in the production of capital for the nation. It also allowed foreign investors come in and invest. Capitalism gave the merchants and other private people do the business with ease and well. Banking State banks were allowed to print their own currency; although they printed different currency commerce was made difficult. There was monopoly as the state chartered banks operated until the private banks were allowed to operate. These banks played a very crucial role in the market they also lend out money to the famers and other citizens who used the money to carry out economic activities. They had to repay the loans with some interest. There were about two thousand banks across the American republic and a fifth was owned by the government7. The banks also feed the government with tax. These banks also were a source of employment for the people of America, those who were educated would get employment in the banks. They also acted as institution for investment by the private persons. Agriculture There were many agricultural activities that took place during the establishment of the Early American republic especially in the northern region. There was massive production of grains, livestock, tobacco cotton, fruits, and wools. These products were to be used by the industries which had been established. It was easier for the famers to produce and transport these products as the transport system had been improved. The canals which were served by the steam boats connected the southern and northern regions. The railway system which was at its infancy enhanced the production of cash crops especially the cotton8. The products of agriculture had a ready market; the urban population depended on the agricultural products. The banks helped in financing the farmers; with the money they could purchase better machinery for better production. The western land which was very fertile was brought to use, the population of the famers increased in the region as a result of agricultural activities. The various change in this sectors helped the farming better, mechanization enhanced production. Agriculture as an economic activity helped this nation develop to a great extends. There were a lot of revenues generated from this sector. The federal government was able to get tax through taxation, it was able to settle the war debts and develop the country’s infrastructure. Industrial production The Early America republic underwent great industrial revolution. Many changes occurred in the manufacturing industry unlike during the colonial era when the British had to take the produce back to their mother country. There were many industries all over the republic, for example the textile industry and machine producing industry. The industries received raw materials from the farms and other sources9. They produced products which were sold in the market. There was both small scale and large scale production by these factories, somewhere owned by the private owners while the rest the government. They were a good source of revenue and employment for the early America republic population. The industries really received a great boost with the establishment of better transport system; the goods could reach the market on time. Trade Trading was one of the major key activities in the republic; there were many trading activities in the cities. The agricultural products were sold in the market by these traders, the industrial products too. As a result of trading the population of the cities grew by 60%, there were many rich merchants in America who sold their product10. The traders sold off their products like farm implements, food, grains, clothes and other goods and services. The government obtained its tax from the traders; these taxes helped the government pay off its depts. The merchants support to the government give the government a chance to develop and invent its policies. The farms supplied the merchants with the products; the merchants sold them in the cities. This activity employed so many citizen of the republic, many citizens settled in the cities especially New York to trade. Conclusion The economy played a very crucial role in the development of the early America republic. It was the major source of revenue. The revenue that was obtained from this sector was responsible for the development of various especially the infrastructure. The merchants support to the government set it on foot after the civil war. It was through the economic activities that the transport system improved in the republic. The republic industries wouldn’t have grown without out agriculture. The federal government obtained most of its tax through the economic activities. Bibliography Stone, Oliver & Peter Kuznick. The Untold History of the United States . Gallery Books: New York, 2013. Seavoy, Ronald. An economic history of the United States: From 1607 to the present. New York: Routledge. Hughes, Jonathan & Cain, Louis. American Economic History. Upper Saddle River: Prentice Hall. 2010. Read More