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The American Industrial Revolution, concentrated in the northeast, would ultimately prove to be the most significant force in the development of the modern United States. This economic innovation sprung primarily from necessity. New England's agricultural economy was the poorest in the country and that helped to spur experimentation there. Meanwhile, the far more fertile southern states remained fully committed to agriculture as the central source of its wealth, here, too, dramatic changes created a wholly new economy that would have been unrecognizable to late-18th century Americans.

The slave-based TOBACCO ECONOMY that sustained the Chesapeake region was in deep crisis in the late-18th century and some Virginia leaders even talked about ending slavery. But technological innovations to process cotton soon gave new life to slavery, which would flourish in the new nation as never before.

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