Economic Impact of the Civil War

The Civil War left our nation in ruins in several areas. The many mixed feelings of what it did to us as a people and our nation have been felt for many years since its end in 1865. It not only abolished slavery but also effected the industries, exports, and technology throughout the country. Although the Civil War was primarily a conflict fought between the North and South over slavery, it was a turning point that greatly influenced the economy of both regions- both then and today. The Northern economy was based on industries, shipping, ship making, manufacturing, and fur trade. Because there were many industries in the North, the people started using them to produce their supplies that they needed for the war and to produce food for the people and military. Another important industry was the iron and steel industry. This vast production helped increase the supply of ships, swords, and guns.(North and South: Different Cultures, Same Country) The railroads were used greatly in the North by transporting their men and weapons quickly.(Economy In The Civil War) This helped them save money on transportation giving them more money to spend on other supplies that would help them during the war. When the war was over and slavery had started to die out, workers in the industries were replaced with immigrants. Since there were few industries in the South, many of the immigrants would settle in the North and work in those industries. This caused a shortage of people in the southern industries and farms, but increased the population in the northern region.(North and South: Different Cultures, Same Country) The South was an agricultural economy with a few industries, and started out as the wealthiest region in the country. But as the Civil War continued the southern economy was destroyed. Before the war, the South had a high export on tobacco and cotton until the Union blockaded all of the Souths ports which slowed all their exports and ended the banking system. This was a big loss for the South(Economy In The Civil War). The South had one thing that the northerners did not have which were large farms for growing Cash Crops and Stable Crops.(North and South: Different Cultures, Same Country) This still was not enough to feed all of their people and military, resulting in starvation and death. When the men found out that their families were starving to death, they would leave the army and go home to help. A major disadvantage for the South was the short supply of guns and ammunition. Men had to bring their own weapons or search through the battlefields and take the Unions military supplies. Another disadvantage was that the South had small interconnected railroads which made it hard to transport food, men, and weapons to long distances quickly.(Economy In The Civil War) Eli Whitney was a big advantage in the South. He created the Cotton Engine which increased slave population, but it still was not enough to help them in the end. The economic problems between the North and South had a big impact on making the South the poorest region of the country. The South had so many disadvantages that it costed them the war. Even after the war the South continued to stay poor and the North continued to stay very wealthy. Today the North includes all the major ports, industries, trades, and manufacturing that is needed to help keep this country going.