Nationally Integrated Economy

Only available on StudyMode
  • Download(s) : 82
  • Published : May 5, 2013
Open Document
Text Preview

Nationally Integrated Economy

From the years 1607 to 1776 American was merely a colonial integrated market economy. During these years, very little was developed other than the 13 colonies, and all trade involved the Mother Country England, but after the Declaration of Independence was written in 1776 the colonies united to become a country and began to move towards a nationally integrated market economy. With the change in economy came the ability to bring the country up to par with the goals in mind when the Declaration of Independence and National Constitution were written.

In the early years of the new United States of America, there was a ‘face-to-face economy.’ In other words, all production was done by artisans and they sold to people who they knew and lived in town together, buying and selling between people who did not know each other was unheard of, until factories came about and it slowly turned into an ‘economy of strangers.’ A factory is a central place where things are made; it uses machinery and enables continuous mass production. This is what moves us into a nationally integrated economy.

The main factors of a nationally integrated economy are labor, land, capital, and knowledge. This can be seen through the chain that connects the surplus of goods to a surplus of labor. The surplus of goods is sold to various buyers through the global and national economies, which leaves the farmers with extra money. This extra money can now be used to either invest money in new tools or crops, or on purchasing more consumer goods. As a result, there is a higher demand for goods, therefore, according to the laws on economics, supply must increase as well; therefore the increased demand is satisfied by mass production. So the artisans who used to be the only producers, and now destroyed and handmade items become extremely expensive and only available for the rich. Instead, factories begin popping up and technology continues to progress. For example,...
tracking img