Title: The American Economy During the 1800s | Synonym
Headings: The American Economy During the 1800s
The American Economy During the 1800s
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1 Land and Resources
2 Government and Economy
3 Manufacturing
4 Booms and Busts

Content: Others, particularly influenced by Jefferson and Jackson, saw a national bank as an unnecessary intrusion of the government, and the U.S. lacked a national bank for much of the 19th century. Banking was controlled by the states and the value of paper currency and banknotes varied greatly and were subject to corruption and speculation. It was not until the creation of the Federal Reserve in 1913 that the country possessed a permanent central bank. 3 Manufacturing
Jefferson, at the turn of the 19th century, envisioned America as an agrarian country, but instead, it became increasingly industrialized throughout the 1800s. The second half of the 19th century witnessed railroads crisscrossing the country, the development of steam engines, power-driven production equipment, and a cheap labor force infused with newly arrived immigrants. Factories began to dominate urban areas, and people flocked to the cities seeking work in new industries. Innovations in interchangeable parts, mass production and assembly lines revolutionized American industry. 4 Booms and Busts
Economies are subject to boom and bust periods, and the U.S. economy was particularly vulnerable to the business cycle in the 19th century. The relative lack of governmental influence and poorly regulated banking led to deep depressions and volatility. A monetary scheme dependent upon gold and silver to back its value caused currency to be restrictive and less able to cope with economic downturns.