While the economic situation of laborers deteriorated during the war, one must remember that wage earners in were still a relatively small share of the total labor force.
Uniforms, tents, wagons and horses were also rare in the South, and these problems only increased toward the end of the war.
By the end of the war, inflation had reached a point where the value of the Confederate currency was virtually zero. North The northern soil and climate favored smaller farmsteads rather than large plantations. Utilizing slave labor, cotton planters and farmers could cut costs as they produced cotton for sale to other regions and for export to England.
One of the very first things the Union government did was to blockade Southern ports. The labor forces in the South and North were fundamentally different, as well.
The sharecropping system that replaced slavery had few incentives for soil conservation innovation or the cultivation of new crops. During the sectional debates over the tariff and the expansion of slavery that characterized the thirty years before the War, the North had been forced to forgo or compromise several of its national economic policy objectives because of Southern opposition and the strong position the Southern states held in the Senate.
Many towns and communities were totally destroyed. There were no large cities aside from New Orleans, and most of the ones that did exist were located on rivers and coasts as shipping ports to send agricultural produce to European or Northern destinations.
Arms and ammunition were also chronically in short supply in the South. The influx of immigrants from Europe and Asia provided competition in the labor market, however, keeping wages from growing very quickly.
By the time of the Civil War, an extensive railroad system had been built, with new lines through the Northwest being added. They had lost a cause they believed in.
Economic recovery in the South was slow. Northern victory in the War insured their continuing control of the federal government and implementation of their economic policies.
In addition to having a population that was more than twice that of the South, the North had enough food to feed all of its people, including its armies.
On the other hand, the North was a significantly more industrialized economy, so it benefited from the railroad boom and manufacturing wartime products. Indeed, several economic historians have claimed that the creation and subsequent retirement of the Civil War debt ultimately proved to be a significant impetus to post-war growth Williamson ; James The Union armies had wagons, tents, and its factory-produced blue uniforms.
Thus, when Northern politicians tried to ensure that new states admitted to the Union were "free-soil" i. By the beginning of prices had already doubled; by middle of they had increased by a factor of There were four pieces of legislation that passed during the Civil War which were critical to Northern economic development during the decades after the War.
While the increase in the national debt seemed enormous at the time, events were to prove that the economy was more than able to deal with it.
In fact, there were almost as many blacks - but slaves and free - in the South as there were whites 4 million blacks and 5. Another contrast was the much higher fraction of revenues accounted for by the issuance of currency on the part of the Richmond government.How did the war affect the economy in the South?
The economy was ravaged. Farms and plantations were destroyed about 40% of the South's of livestock. 50%. Transcript of Economic Effects of the Civil War Ecnomic Effects of the Civil War After the slaves were free in the south.
Farmers and plantation owners had to either pay people to. The Economics of the Civil War.
Roger L. Ransom, University of California, Riverside.
The Civil War has been something of an enigma for scholars studying American history. How was the South affected by the Civil War?The effect on both the land and the people. Even after years, the Civil War evokes memories of great men and great battles.
Certainly that war was a milestone in U.S.
history, and on the plus side it reunited the nation and freed the slaves. The Economics of the Civil War. Roger L. Ransom, University of California, Riverside. The Civil War has been something of an enigma for scholars studying American history.
During the first half of the twentieth century, historians viewed the war as a major turning point in American economic history.Download