Labor Scarcity Drove U.S. Mechanization

The paper argues American firms systematically replaced scarce skilled labor with machines and new factory organization, developing high‑pressure steam, vertical mills, and precision manufacturing distinct from Britain. Policy shocks (e.g., the 1807 Embargo) and federal armory programs catalyzed this path, while broad incentives democratized invention beyond elites. — This reframes modern reshoring and automation policy by showing the U.S. has historically leveraged labor scarcity via mechanization and institutions, not just cheap labor or tariffs.