How Economy was impacted during the Civil War?

NORTH

SOUTH

During War

During war

No factories couldn't make guns or ammunition.

Didn't have interconnected reailroad tracks so they had trouble transporting food, weapons, and men quickly and over long distances

Focused of cash crops like tobacco and cotton so they didn't have enough food

had enough food and enough factories to make weapons for all of its soldiers

extensive rail network that could transport men and weapons rapidly and cheaply

Lost most most income because the north blockaded the souths ports

Lost its banking system which was in New York

Huge population increase in the North between 1800 and 1860, mostly through immigration.

The economy of the North was based on manufacturing.

The economy of the South was based on agriculture.

Cotton became the most important crop after Ely Whitney’s invention of the cotton gin.

Civil War benefited the Northern economy

left the Southern economy in absolutely terrible condition

with its agricultural economy, lost its ability to exploit slave labor for greater profits, and also most battles occurred in Southern territory, leaving huge spans of agricultural land destroyed

was a significantly more industrialized economy, so it benefited from the railroad boom and manufacturing wartime products