In the nineteenth century, the United States underwent a remarkable transformation from an economy based on the production of raw materials and subsistence agriculture to an expanding market economy. In this transformation, handicraft production was replaced by factory production; an elaborate canal system and, later, railroads supplanted a poor transportation system based on rivers and seasonal roads; and rural life began to give way to urban life. By the end of the nineteenth century, the United States had outdistanced England, France, and Germany in the rate of economic growth, per capita wealth, and general prosperity.

These changes were more than just material; they included a shift in mentality. Tried and true patterns of behavior no longer appeared to provide a true compass for responding to this market revolution. Social and cultural life had been reconfigured and continued to undergo startling changes. The only constant seemed to be change itself.

This tremendous growth presents to the student of history important and fascinating questions: How exactly did this happen? What explains American economic success? These questions have intrinsic value for understanding American history. The obvious explanation is that the United States was uniquely blessed with an abundance of natural resources, industrious and innovative people, and a political and legal system that encouraged economic growth, but there is more to the story.