Analysis of economic growth in the US 1815-1860
The period between the American Revolution and the Civil War had great significance for the United States' economy. Although initially the economy seemed unstable at first, after the second war that America fought with England, the economy began to show considerable growth thereafter. This can be seen as the result of the cotton trade in the South and the eventual industrialisation of America, especially in the Northeast and later the West. From the invention of cotton gins to the adaptation of railways one can see how the United States used their opportunities and resources to their full advantage, transforming their economy to be able to compete among the worlds leading economical countries.
'The year 1793 was a doubly significant one in American economic history.' This statement by the historian D. C. North illustrates the favourable conditions the United States experienced. This was the year in which Britain went to war with France, a war that lasted until1815. Moreover in the same year Eli Whitney invented the cotton gin allowing America to promote their cotton trade and increase their economic activity. This fact and the existence of the war meant that the United States could carry on with world trade as the shipping of France and England had consequently been tied up. Indeed the United States took full advantage of this scenario in order to promote productivity. Domestic exports greatly increased as the cotton trade spread rapidly over the South in response to the growing demand from English textile mills. In addition the United States was able to purchase more imports for itself from the received revenue of its mass exports.
However as is usually the case in an economy, the situation did not last for very long and when France and Britain reached temporary peace from 1801-1803, the United States experienced a significant decline in trade. Having said this, as peace was broken, another period of expansion took place until 1807. This economic development and
'The year 1793 was a doubly significant one in American economic history.' This statement by the historian D. C. North illustrates the favourable conditions the United States experienced. This was the year in which Britain went to war with France, a war that lasted until1815. Moreover in the same year Eli Whitney invented the cotton gin allowing America to promote their cotton trade and increase their economic activity. This fact and the existence of the war meant that the United States could carry on with world trade as the shipping of France and England had consequently been tied up. Indeed the United States took full advantage of this scenario in order to promote productivity. Domestic exports greatly increased as the cotton trade spread rapidly over the South in response to the growing demand from English textile mills. In addition the United States was able to purchase more imports for itself from the received revenue of its mass exports.
However as is usually the case in an economy, the situation did not last for very long and when France and Britain reached temporary peace from 1801-1803, the United States experienced a significant decline in trade. Having said this, as peace was broken, another period of expansion took place until 1807. This economic development and