Economy in the Antebellum Period

Economy in the antebellum period rapidly increased as the economy became more industrial and technological based, rather than it had agriculture based as it had been for the couple centuries passed. The per capita doubled as various significant factors propelled economic growth. Such causes range from an abundance in natural resources, substantial population growth, transportation revolution, capital investment, government support and industrialization. Though America had not been well respected in previous years, they accumulated respect from prominent events such as the War of 1812 and Monroe Doctrine. As respect increased, thus did the investors as they saw the potential of this young country. Not only did they receive support from investors, but also underwritten loans from state governments helped to fund transformations in infrastructure and transportation who favored the enterprise. Such transformations improved the transportation system by instituting railroads and canals, making it a great deal easier to transport goods, allowing prices of these goods to drop. As the prices dropped, the poorer citizens were able to now purchase such good and the rich were able to become richer; augmenting both classes. This transportation revolution additionally led to the market revolution which created national markets, in comparison to local, and regional specialization. Regional specialization allowed farmers and such to be able to devote their time to other things, directing to the path of industrialization. Since there was an abundance of natural resources from acquisition of certain territories such as that from the Louisiana Purchase and Florida, industrialists were able to obtain these raw materials and energy to produce their inventions and goods. The population growth, from both natural increase and an influx in immigrants, supplied these industrial factories with the employers necessary to keep the companies flourishing.