How Did The Civil War Affect The Economy
Introduction
In the years that followed the end of the American Civil War, and more than a hundred years after the first industrial revolution which was centered around textiles, the economy of the United States grew considerably as the country entered in its second phase of Industrial Revolution. The visual map of the United States has therefor been transformed by unprecedented urbanization as more and more people started to emigrated from the countryside to the cities. Also the new territories recently acquired by the United States in the West part of the country allowed the United States to expand a growing supply of agriculture partly due to a larger labor immigrating from Europe. Moreover, new industries and method of productions arisen during …show more content…
The North has therefore a bigger borrowing capacity. The South has to resign to printing money, and therefore, made the inflation to increase exponentially. According to the San Jose State University Department of Economics, when the Civil War ended in April 1965; the cost of living in the South was more than 90 times higher than what it was before the beginning of the war. To have a more concrete idea of the problem, 1 Union Dollar on April 1865 was worth 100 confederate dollars at the same date.
Adding to the increasing amount of money supply in the South due to the constant creation of money to pay for the war, the fear that the confederate dollar would be totally unredeemable decreased the value of the confederate dollar by 1100% to achieve 1 Union dollar for 1200 confederate dollars in May 1865.
The actual America debt which is worth a bit less that 19 trillion dollars is the direct descendant of the debt contracted by the United States during, and right after the civil war, in order to rebuild the countries infrastructures that have been destroyed by 4 years of
In the years that followed the end of the American Civil War, and more than a hundred years after the first industrial revolution which was centered around textiles, the economy of the United States grew considerably as the country entered in its second phase of Industrial Revolution. The visual map of the United States has therefor been transformed by unprecedented urbanization as more and more people started to emigrated from the countryside to the cities. Also the new territories recently acquired by the United States in the West part of the country allowed the United States to expand a growing supply of agriculture partly due to a larger labor immigrating from Europe. Moreover, new industries and method of productions arisen during …show more content…
The North has therefore a bigger borrowing capacity. The South has to resign to printing money, and therefore, made the inflation to increase exponentially. According to the San Jose State University Department of Economics, when the Civil War ended in April 1965; the cost of living in the South was more than 90 times higher than what it was before the beginning of the war. To have a more concrete idea of the problem, 1 Union Dollar on April 1865 was worth 100 confederate dollars at the same date.
Adding to the increasing amount of money supply in the South due to the constant creation of money to pay for the war, the fear that the confederate dollar would be totally unredeemable decreased the value of the confederate dollar by 1100% to achieve 1 Union dollar for 1200 confederate dollars in May 1865.
The actual America debt which is worth a bit less that 19 trillion dollars is the direct descendant of the debt contracted by the United States during, and right after the civil war, in order to rebuild the countries infrastructures that have been destroyed by 4 years of