Economic Impetus of the Civil War
Directly after the Civil War, industry was small and agriculture was still the primary occupation of the U.S. population. The South remained relatively agriculture based during the 1870s-1920s, but the North experienced a lot of industrialization.
The Civil War brought a need for more industrial power in the North. They needed to produce ammunition and supplies for the soldiers. Escaped and later freed could fill more factory jobs in the North. These jobs allowed them to get alternative means of income than working on a farm in the South.
Northern economy boomed. Northern business people made money selling war supplies to the government which they used to invest in businesses. The population decline caused by casualties in the Civil War created a labor shortage. As a result, agricultural tools increased in sale and commercial agriculture became popular. The National Bank Act (1863) allowed investing to become safer by making bank behavior more regulated.
In comparison, the South was hit hard economically by the war. Their cheap labor--slaves--were gone and the South's primary industry--agriculture--was damaged as a result. An economic gap widened between the North and South. By 1870, Southerners earned less than 40 percent of what Northerners earned.
Liza French
The Civil War brought a need for more industrial power in the North. They needed to produce ammunition and supplies for the soldiers. Escaped and later freed could fill more factory jobs in the North. These jobs allowed them to get alternative means of income than working on a farm in the South.
Northern economy boomed. Northern business people made money selling war supplies to the government which they used to invest in businesses. The population decline caused by casualties in the Civil War created a labor shortage. As a result, agricultural tools increased in sale and commercial agriculture became popular. The National Bank Act (1863) allowed investing to become safer by making bank behavior more regulated.
In comparison, the South was hit hard economically by the war. Their cheap labor--slaves--were gone and the South's primary industry--agriculture--was damaged as a result. An economic gap widened between the North and South. By 1870, Southerners earned less than 40 percent of what Northerners earned.
Liza French