The term refers to a significant transformation in the American economy during the first half of the 19th century. This period witnessed a shift away from a largely subsistence economy, where goods and services were produced for personal consumption, toward a market-based system characterized by increased production for sale, widespread commerce, and the development of interconnected regional and national markets. The construction of canals and railroads, coupled with technological innovations like the cotton gin and the factory system, fueled this transition. For example, farmers in the Ohio River Valley increasingly grew crops like wheat and corn to sell in distant markets, rather than solely for their own sustenance, demonstrating the growing commercialization of agriculture.
This transformation had profound consequences for American society. It fostered economic growth and opportunity, creating new jobs and raising the standard of living for some. It also led to increased social stratification, as some individuals and businesses thrived while others struggled. The expanding market system also fueled westward expansion, as settlers sought new land to cultivate and access to expanding markets. Furthermore, the changes spurred debates about government regulation, tariffs, and the role of banks in the economy, setting the stage for future political conflicts. The increased interconnectedness fostered by these market changes also contributed to the growth of national identity and culture.
