Economic Effects of the Civil War (War Debt (After the war(1866), the…
Economic Effects of the Civil War
North/Union's Increase in economy
By 1860, 90 percent of the nation's manufacturing output came from northern states.
The North produced 17 times more cotton and woolen textiles than the South, 30 times more leather goods, 20 times more pig iron, and 32 times more firearms.
The North produced 3,200 firearms to every 100 produced in the South.
Northern states produced half of the nation's corn, four-fifths of its wheat, and seven-eighths of its oats.
War related Industries grew exponentially.
Railroad Boom- allowed for the faster distribution of goods and most of the railroads were in the North.
Almost Destroyed Completely
When the slaves were freed, $1.5 billion of the South's capital was ruined.
States such as Georgia, South Carolina, Tennessee, Virginia, and Mississippi were devastated by the effects of the war meaning they had a detrimental amount of finances to pay off to rebuild their states.
Southern farmers were hampered in their ability to sell their goods overseas due to Union naval blockades.
Without the slaves the South had to completely readjust their workforce which would change their economy.
After the war(1866), the national debt stood at $2.76 billion.
Before the war (1860), the national debt was $65 million.