US Economy During Industrial and Information Revolutions Essay

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Updated: Mar 12th, 2024

Introduction

At the time of independence in 1776, the U.S was primarily an agrarian society, with farmers and artisans tilling land and conducting their businesses from home or small local shops. However, the industrial revolution brought tremendous and everlasting changes to the U.S economy and society; with major changes taking place in the agricultural, industrial as well as communication sectors. These changes have continued to take place within the U.S society over the centuries, giving rise to an information revolution that has helped to bring tremendous change to the way American people think and conduct their businesses (Brezina 8-9).

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How the industrial revolution changed the U.S economy

In the years following the American Civil War, industries and modern businesses grew enormously. The U.S was among other global economies that were transformed from agrarian societies into modern economies driven by industry and the manufacture of goods. Machinery replaced manual and animal labor in agriculture and other sectors and various innovations produced better methods of manufacturing goods from the vast wealth of natural resources.

From the setting up of America’s first factory in 1790 to the production of the first average American’s car by Henry Ford in 1908, the U.S.A had experienced tremendous changes which transformed the country from a very sparsely populated agrarian society into a highly industrialized and urbanized nation (Hillstrom 37-38; Brezina 5-6).

The new industrialized society saw a tremendous growth in the number of factories and industries which in turn attracted jobless artisans and farmers into the new industrial centers to provide much needed labor. Massive movement of people from rural areas led to urbanization as existing urban centers expanded to accommodate the growing immigrant populations. Goods were produced in large quantities and growing populations provided ready markets for the goods; leading to a remarkable growth of the manufacturing sector.

Industrialization necessitated the growth of the transport sector to enable easier movement of people and goods between various places leading to construction of railroads, roads, canals and shipping yards. A new network of railroads helped to transport people to work in industrial cities, transport raw materials to factories; as well as in the distribution of manufactured goods. The manufacturing sector provided new jobs for the immigrant populations besides introducing them to better living standards through the supply of cheap and affordable manufactured goods (Hillstrom 22, 196; Brezina 4-10).

The industrial revolution also brought about a revolution in the communication sector with the innovation of such modes of communication as the wire telegraph, wire telephone, and radio or wireless telegraph. Better communication meant better trade because ideas could now reach business people over vast regions. Miles of telegraph wires were constructed along railroads and the later used the telegraph to improve scheduling and shipping efficiency. Steam power led to the growth of the printing industries, creating massive publishing of newspapers and books that not only reinforced the growing literacy needs among the masses but also supplied essential materials for their growing political interests. America became well connected with the outside world (Brezina 31-32, 34; Hillstrom 39-41, 89).

How the information revolution continues to change the U.S economy

While the U.S and other world economies have continued to experience tremendous industrial growth since the industrial revolution, the last few decades have witnessed an unprecedented progress of communications and computer technology in U.S society. Economic growth and output as well as the employment sector are now highly dependant on the information sector; replacing the role that capital, land, labor and transportation played in determining production in the industrial society.

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American industries, businesses and homes have been undergoing rapid computerization and networking in what is popularly referred to as the microprocessor revolution. The growth of the computer and telecommunications industries have given rise to the information technology (IT) industry and led to the development of an information age (United States Department of Labor 60-63).

Beginning from the 1950s, large computer companies such as IBM, Univac, Honeywell and RCA initiated the growth of a new computer industry that has led to the creation of millions of newer jobs. Computers have also improved communication by connecting people in different locations through networks. Through the internet, millions of Americans are able to communicate and in 1998 for example, revenue generated through the internet was estimated at $300 billion.

In the manufacturing sector, computerization has enabled the operation of machinery by very few technicians through the robotic systems while at the same time enhancing production. Businesses are able to meet consumers’ demands in a more efficient manner through closer monitoring of inventories which helps to reduce the time spent in delivery of goods as well as reduce the inventories. Computers now provide better link between manufacturers, their suppliers and the consumers respectively. Products can also be located in much more easily through networking (Hillstrom 89-90; United States Department of Labor 63-66).

Personal computers, telephones, mobile telephones, e-mail and internet have helped to reduce traditional time and office space requirements so that enormous business transactions can be carried out in very short time and limited space. Information for businesses and workers is also more easily accessible and commuting expenses have been reduced. Internet and telecommunication technologies have also led to increased communication between the U.S and other nations of the world; opening up foreign markets for U.S products and therefore improving her economic performance globally. Globalization has been on the increase in the information age; creating new opportunities for the U.S in international trade and subsequently leading to the growth of the export sector and creation of more jobs to service this sector (United States Department of Labor 67-73).

Conclusion

The innovations of the industrial revolution paved way for the information revolution that has brought tremendous changes to the U.S economy. Various modes of communication developed during the industrial revolution have improved over the years to give rise to the more advanced information technology we have today. Modern information systems therefore credit the industrial revolution for laying the foundation upon which they have been established.

Works Cited

Brezina, Corona. The Industrial Revolution in America: A Primary Source History of America’s Transformation Into Industrial Society. Buffalo, NY: Rosen Publishing Group, 2005.

Hillstrom, Laurie C. The Industrial Revolution in America. Santa Barbara, CA: ABC- CLIO, 2007.

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United States Department of Labor: Office of the Secretary. “Technology is Transforming the U.S Economy.” 2009. Web.

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IvyPanda. (2024) 'US Economy During Industrial and Information Revolutions'. 12 March.

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IvyPanda. 2024. "US Economy During Industrial and Information Revolutions." March 12, 2024. https://ivypanda.com/essays/us-economy-during-industrial-and-information-revolutions/.

1. IvyPanda. "US Economy During Industrial and Information Revolutions." March 12, 2024. https://ivypanda.com/essays/us-economy-during-industrial-and-information-revolutions/.


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IvyPanda. "US Economy During Industrial and Information Revolutions." March 12, 2024. https://ivypanda.com/essays/us-economy-during-industrial-and-information-revolutions/.

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