Free Enterprise and the Industrial Revolution In the United States, the Industrial Revolution took place in a period marked by the growth of free enterprise. British restrictions on trade had been lifted. Hamilton's reforms had strengthened the banking system, and banks were able to lend more money. New access to credit, or
borrowed money, allowed people to start mills and factories in cities and in rural places where swift streams provided power.
These and other businesses operated, for the most part, without much government control. Nor did the
government own factories or intervene heavily in the market. The government, however, protected contracts and property. People could buy, sell, or use property as they saw fit.
Most Americans wanted the freedom to try new things. They believed in competition, which encouraged new inventions. In 1792, a group of 24 investors started the New York Stock Exchange. This stock market raised private capital to pay for new ventures. Success meant profits and brought new wealth to investors. Profits led to new investment and further economic growth.
How did government policy encourage the growth of industry?