Lesson 11: Lowell Workers and Producers Respond to Incentives
An Internet application of Unit Six: Lesson Three from Eyes on the Economy, Part I
Teacher Edition
Go to the Student Version

Introduction

The Industrial Revolution was brought about by development of the factory system. This system displaced manufacturing formerly carried on in shops and households. In the United States textile mills in New England were finding it difficult to compete with mills in Great Britain. However by 1807 American businesses could compete with mills in Great Britain. They opened numerous textile mills. What caused this change?

The factory system as exemplified by the textile mills of Lowell, Massachusetts, increased productivity and increased income for its workers. Many young farm girls left their families to go work in these mills. In this lesson you will learn why there were so many jobs waiting for these young women and why they gave up life on the farm in exchange for long hours working in a factory at relatively low wages?

Grades: 8-11

Prerequisite: An understanding of supply and demand is necessary to complete this lesson.

Content Standard: 8

Concepts:

• Supply
• Demand

Objectives:

• Students will be able to graphically represent how an embargo will affect supply, demand, price, and quantity of goods.
• Students will be able to explain the affect an embargo might have on consumers.

Lesson Description

In this lesson students learn about supply and demand and how changes in supply affect price and quantity of goods.

In part 1 of this lesson, students will first be presented with a hypothetical story about a high school's policy on concession sales. Once students have read the story, they'll be asked to determine how supply will be afffected as well as price.

In part 2, students will learn about the dynamic nature of the young American economy in the early 1800s. By visiting various web sites and answering several questions, students will learn that business leaders and workers responded quickly when economic opportunities were presented. They were sensitive to new incentives. However, occasionally these incentives were artificial in the sense that they were brought about by protection from competition.

Materials

• Internet access
• Each student will need a copy of the Assessment worksheet.
  Assessment - (PDF 88k - 1 page)

Procedure

Part 1

The freshman class at Hometown High School sells popcorn at all school functions. Students can purchase popcorn from the class’ concession stand or purchase it from a number of sellers outside of school such as a grocery store or convenience store and bring it to a school function.

Unexpectedly, the principal announces that students will no longer be allowed to bring popcorn that has been purchased outside of school to school events. Anyone wanting popcorn must now buy it at the concession stand run by the freshman class.

The market for popcorn can be shown as a graph.

Part 2

In this lesson you will learn about the dynamic nature of the young American economy in the early 1800s. Business leaders and workers responded quickly when economic opportunities were presented. They were sensitive to new incentives. However, occasionally these incentives were artificial in the sense that they were brought about by protection from competition.

Go to: http://www.jmu.edu/madison/secretary/embargocommentary.htm. Read "Embargo Act Commentary" and answer the questions below.

1. What was the Embargo Act of 1807? [It was a law that prohibited all international trade to and from American ports.]

2. How was the embargo similar to the principal's rule dealing with the sale of popcorn? [Both the embargo and the principal's rule prohibit free trade. Students couldn't import popcorn from outside the school. United States consumers couldn't purchase imports and producers couldn't import or export goods.]

3. Why did Jefferson impose an embargo? [To force England and France to stop attacks on American ships and to stop them from seizing American sailors off merchant ships.]

4. Why were President Jefferson and Secretary of State James Madison hesitant to go to war with England and France? [They felt the United States army and navy were not ready.]

5. Who was hurt by the embargo? [Businesses in New England who couldn't trade with foreign nations, southern farmers who lost markets for their goods, consumers who had to pay higher prices for goods]

The severe drop in trade reduced the supply of products imported to the United States. One good that American consumers purchased from Great Britain was textiles. Before the embargo, families either bought cloth manufactured in Britain or they produced their own cloth at home.

How was this impact on America consumers of textiles similar to the example of the freshman class selling popcorn after the principal ruled that imported popcorn was not allowed? [Both situations caused a decrease in supply which resulted in an increase in price. Both consumers of textiles and of popcorn were hurt.]

Go to http://www.gliah.uh.edu/database/article_display.cfm?HHID=597

How did the embargo affect Francis Cabot Lowell's importing business? [Due to the embargo, his importing business was in ruins.]

How did Lowell's trip to Great Britain change his life? [He saw textile factories and decided to open a factory in the United States.]

How was the embargo an incentive for Lowell to create a factory in the United States? [The embargo resulted in higher prices for textile. Lowell saw an opportunity to make a profit from the higher textile prices.]

Go to: http://www.si.edu/lemelson/centerpieces/whole_cloth/u2ei/
u2materials/eiTessay.html

Go to the section entitled "The North."

Division of labor means dividing up the work with each individual completing only one step or a limited number of steps in the production process. Division of labor required several individuals to complete the work.

How was division of labor used in the production of textiles in the 18th century? [Much of the work was done by farm women in their homes. Later in the century they did some of the work in their homes and some of it was taken to mills outside the home. For example women working in their homes would take the wool to a carding mill for cleaning and carding, then take it back home for spinning. They might weave the wool at home or take it to a professional weaver. They then took the cloth to a mill to be finished. For the most part the women worked alone, on their own time and at their own pace.]

Read the paragraph under the picture of Lowell in 1840 and check out the information at http://www.gltech.org/lowell.html

How did Lowell textile mills make use of division of labor? [All steps for producing cloth were in one building or mill, but no one worker would produce the final product from start to finish. In this case each young unmarried woman was taught to run a limited number of machines. Thus, they developed specialized skills needed to complete one portion of the production process.]

How did this affect the productivity or output per worker? [Workers in the factories were more productive than those working in their homes. They learned skills to run one or two machines and worked on a regimented schedule six days a week, up to 14 hours per day.]

Go to: http://www.gliah.uh.edu/database/article_display.cfm?HHID=597 , http://www.nps.gov/lowe/mill_girls.pdf, and http://www.fordham.edu/halsall/mod/robinson-lowell.html

Why did Lowell recruit young women to work in the factory? [Spinning and weaving had long been performed by women in the home and young women were willing to work for half or a third the wages of young men. The daughters of farmers had few economic opportunities. Many workers were needed to work in the factories and the young girls were willing to come and work.]

Check all the reasons or incentives the young farm girls had for leaving home and working in the mills.
Earn money to pay for the college education of a male brother or relative [Correct. To make a gentleman of a brother or a male relative by giving him a college education was one reason many mill girls came to work in Lowell.]

Had no property rights [Correct. A father could make a will and leave nothing to his daughters. If a husband died, the wife could be left without a share of her husband's property.]

Wanted to be seen as capable of earning and spending money. [Correct. Women were not seen as capable of spending their own or other people's money. In Massachusetts before 1840 they weren't allowed to be treasurer of their own sewing society.]

Make more money than at alternative occupations such as a servant, tailor, or spinning and weaving in the home [Correct. At these occupations she might earn a wages from 50 cents to $1.00 per week.]

Many occupations were not available to woman. [Correct. The arts, professions, and trades and industries were nearly all closed to women.]

Farm families faced severe economic difficulties. [Correct. Farm life was difficult and many farm girls left home because of the economic hardships the families faced.]

Farm girls were lonely with limited social life and were dependent on their families for their livelihood. [Correct. By earning their own money in the mills the girls had economic independence and they could socialize with other girls.]

Gain some educational and social opportunities.[Correct. Working in the mills provided girls with opportunities for some education, to attend social events, to shop, and attend religious institutions. When the student finishes, state that all of the reasons listed were incentives for the farm girls to leave the farm and work in the factories.]

[You should have checked all of the incentives listed. As you can see there were many reasons or incentives for young farm girls to leave home and work in the mills.]

The employment of young women in the mills was an example of voluntary exchange that benefited both employer and employee.

How did the end of the embargo affect New England factories? [More competition, lower prices for their goods, lower profits]

Mill owners responded to lower profits by speeding up production and reducing wages. Loom operators who previously handled two looms now handled three or four. In 1834 wages at the Lowell mill were cut 15%. The girls walked out in protest. Leaders were fired. Mill owners began to substitute immigrants.

Closure

Discuss:

1. What impact did Jefferson's Embargo of 1807 have on U.S. consumers of textiles? [Supply decreased because trade was prohibited. Prices of textiles rose.]

2. What incentive did the embargo provide for manufacturers of textiles in the U.S. such as Franicis Cabot Lowell? [With increased prices for textiles, he saw an opportunity to make a profit by producing textiles in New England.]

3. After the embargo was lifted, competition returned in the textile market. How did this affect consumers? [Supply increased and price decreased. This benefited the consumer.]

4. How did the lifting of the embargo affect the manufacturers? [With increased competition after the embargo ended, the price of their goods fell as did their profits.]

Assessment

Assessment - (PDF 88k - 1 page)