Final answer:
The economic engine in the US by the 1840s was propelled by a transition to a market economy, technological advancements, transportation improvements, and a wave of entrepreneurship and invention. Infrastructure development and the influx of immigrants seeking industrial employment in cities also significantly contributed to this economic growth.
Step-by-step explanation:
What Fired the Economic Engine in the US by the 1840s?
By the 1840s, the economic engine in the United States was firing on all cylinders due to a mix of technological advances and entrepreneurial energy.
The country had transitioned from a primarily import-and-export economy to a market economy, characterized by unregulated production of goods and prices, leading to booming commercial centers and skyrocketing populations in cities like New York.
The period after the Panic of 1819 showed economic recovery and robust growth, with the division of labor in factories, significant land speculation, and the selling of public domain lands fueling this economic expansion.
The emergence of a transportation revolution further catalyzed this growth, as improvements in transportation like railroads allowed for quicker production and distribution of goods to a nationwide market.
The country saw a surge of innovation and invention, with products like the electric lightbulb and the telephone emerging, significant urbanization, and the rise of powerful corporations such as Standard Oil and Carnegie Steel, which harnessed capital through the sale of stocks.
The combination of these technological and economic factors not only transformed American cities but fundamentally altered the country's economy, making it less reliant on foreign imports and more focused on domestic production and industrialization. This shift towards an industrial economy saw a great influx of immigrants looking for work, further contributing to the growth of urban centers and the economy at large.