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Economic Impact of the Civil War - Coggle Diagram
Economic Impact of the Civil War
Economic situation of the North in the 1850s
Developed substantial industry in urban areas by the mid-1800s
Able to industrialise thanks to steady immigration from Europe
Low-cost immigrant labour from Ireland & Germany
Increased the north’s population
¼ of all Northerners lived in cities
Involved in industry or commerce rather than agriculture
Vast majority of immigrants remained in the North
Industry expanded much more rapidly in the North
Economic situation of the South in the 1850s
Remained almost entirely agrarian
Relied on slavery to provide unpaid labour
South had little incentive to devote resources to industrial development
Handful of southern cities had enough people to support factories
War time economy in the North
North benefitted from wartime spending
Massive profits for northern factories
Per capita, wartime spending was lower so didn’t burden taxpayers as much
War time economy in the South
South was economically devastated
What economic factors caused the Civil War?
Slavery was indispensable for agricultural labour
Replacing slave labour with wage labour would be a financial catastrophe for wealthy farmers
American South was producing ¾ of the world’s cotton by 1860
Tariffs were imposed on imports disproportionately effecting the South
South relied more on European imports than the North
What was the North’s economy at the end of the Civil War?
Developed industries
1869 Transcontinental Railroad completed in Utah
What was the South’s economy at the end of the Civil War?
Loss of cotton exportation supremacy
Abolition of slavery further eroded their economy
Long Term economic impact of the Civil War?
Many former slaves had to return to ‘slavery’ as sharecroppers
South remained primarily agrarian until WWII
Black farmers took on debt
Infrastructure to settle in the West
Military occupation of the South led to a massive US army
Army helped to pacify Native Americans in the West
Railroads built
Native American tribes had no choice but to accept being moved to reservations