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

Task

In this lesson, you will learn about how an embargo affects supply, demand, price and quantity goods. You'll also be able to explain how an embargo will affect consumers.

Part 1

Read the following story and see if you can answer the questions relating to the graph listed below.

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 part 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? [Answer]

2. How was the embargo similar to the principal's rule dealing with the sale of popcorn? [Answer]

3. Why did Jefferson impose an embargo?[Answer]

4. Why were President Jefferson and Secretary of State James Madison hesitant to go to war with England and France? [Answer]

5. Who was hurt by the embargo? [Answer]

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? [Answer]

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

How did the embargo affect Francis Cabot Lowell's importing business? [Answer]

How did Lowell's trip to Great Britain change his life? [Answer]

How was the embargo an incentive for Lowell to create a factory in the United States? [Answer]

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? [Answer]

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? [Answer]

How did this affect the productivity or output per worker? [Answer]

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? [Answer]

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

Had no property rights

Wanted to be seen as capable of earning and spending money.

Make more money than at alternative occupations such as a servant, tailor, or spinning and weaving in the home

Many occupations were not available to woman.

Farm families faced severe economic difficulties.

Farm girls were lonely with limited social life and were dependent on their families for their livelihood.

Gain some educational and social opportunities.

[Answer]

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? [Answer]

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?

2. What incentive did the embargo provide for manufacturers of textiles in the U.S. such as Franicis Cabot Lowell?

3. After the embargo was lifted, competition returned in the textile market. How did this affect consumers?

4. How did the lifting of the embargo affect the manufacturers?

Assessment

Assessment - (PDF 88k - 1 page)