Answer:
A market economy is based on money while a subsistence economy is not. In a subsistence economy, goods are produced to provide for oneself or one’s family. In other words, subsistence economies are based around self-sufficiency whereas a market economy is based around profit. In a market economy, goods are made and sold to make money. The main causes of the switch to a market economy were many technological advances in transportation and growing demand and employment in factory jobs.
This rapid change in the market system contributed to capitalist-focused ideals. This ultimately leads to economic activity throughout the nation. Although the market economy changed many things economically speaking, it also heavily affected society in America. After the war in 1812, the country wanted to expand into the western territories. A large system of railroads and canals was developed in order to distribute manufactured goods to new markets. For example, The Erie Canal was developed in 1825. This connected New York to mid-west cities by canals going through the Great Lakes. At this time, railroads were one of the fastest-growing industries in America. It become one of the largest employers and also helped support other industries such as coal, lumber, and oil.
The Market economy affected each part of the country differently. The advantages depended on location and way of transportation. For example, the Southern states were developed on big flat riverbeds and temperate winters. This resulted in great farmland and many farms spread out over the land. However, in the Northern states, there were shorter, rockier coasts. As well as less tolerant winters. There were shorter crop seasons and the soil could not grow nearly as many variations of crops. The good thing was that in the Northern and Middle states there were several strong mineral deposits. The southern region was able to support itself on agriculture but the north had to rely on imports. The trip from Europe was closer to the northern ports, so the landing points for potential immigrants from Europe were more common. Because of the European immigrants, there were many European industries that flourished in the North like furniture, glassblowing, and metallurgy. IN the south, their industries and economy greatly benefited from the climate as well as a diverse range of crops brought in from Africa.
Manufacturing, transportation, and communication all were very important when it came to uniting the country. On one hand, there are manufacturing goods from different cultures that would help support a certain environment in a different area. The ‘help your neighbor’ mentality brought many societies together. Though, not forgetting the importance of profit. Transportation did the same thing in a sense. It allowed direct forms of interaction in an easier way that brought all places in the country together. Even if those places were in completely different areas. Communication improved a lot during this time period. As transportation improved, so did ways to communicate. Innovations like the penny press and the electrical telegraph were developed during the market revolution that changed connections throughout the country.
