Eli Whitney and the Cotton Gin Free Essay Example, 1750 words

Immediately, Eli Whitney received a patent right (X72) on 14,March 1794.The output increased and new markets for the cotton products got harnessed in England. The ready market in Europe and continuousburgeon of the textile mill in some of the states such as New England2. The market brought a lot of profits to Eli and the entire southern national agricultural economy. According to United States economists, cotton exports in the country increased after the invention from 500,000 pounds (around 230,000Â  kilograms) in 1793 to over 93Â  million pounds (around 42,000,000Â  kilograms) by 1811.Esentially, thenon-perishability of the cotton products reduced risk in the cotton industry because it can be shipped for over long period of time for instance United States coast to Europe. By1820 to 1860, the cotton products had hit the market and became the chief south United States export courtesy of the cotton gin. Secondly, the machine boosted productivity level hence making Eli Whitney be awarded large tenders for instance that of manufacture muskets by the American army in 1798.It has been argued that this contract brought a lot of revenue to Eli although it was later swindled by endless litigations. We will write a custom essay sample on Eli Whitney and t he Cotton Gin or any topic specifically for you Only $17.96 $11.86/pageorder now This happened at a time when French revolution ignited some conflict against the Britain and United states. The new American regime decided to prepare for the war by purchasing heavy clothing equipment and American army uniforms. This meant that the war department has to issue a contract of 10,000 muskets to be manufactured by Eli Whitney Company. By the end of 1800, Whitney had delivered over 10000 muskets and the contract renewed for an additional 5000 muskets. InMay 1798, the congress voted for over eight hundred thousand dollars inorder to pay for the supplies besides purchase of some weapons and cannons. This meant that the cotton industry was high profitable and hence Eli Whitney got a lot of revenue3. Therefore, we can support the argument for Eli Whitney cotton gin lead to increased productivity, reduce labor cost and promoted more output. The high output causes high sales revenue which later led to the higherprofitswithin the cotton industry. However, Eli Whitney failed to understand her rival business and eventually engaging in other government contractual based business that called for suits and litigations. Some of these contracts include that of supplying cannons and arms which he duped the government. The government had to sue him because he breached the contract hence reduced profits.