Since most of the Civil War was fought in the South, parts of it were ravaged, by occupying forces who did not make any particular effort to conserve resources, by burning, and by other forms of destruction. Food was scarce throughout the war and, by the end, parts of the South suffered from starvation.
That kept sectional tensions high.
Since the North won, its currency prevailed, so it did not diminish in value and was the coin of the realm. We had no income tax, no estate tax, and no excise taxes. Many towns and communities were totally destroyed. The income tax during the Civil War—the first in U. First is the failure of the Richmond government to finance their war expenditures through taxation.
Since tariffs would protect domestic industry from foreign competition, business interests and others influenced politicians to support high tariffs. Not surprisingly, wage earners in the South saw the real value of their wages practically disappear by the end of the war.
Ingenious though this methodology is, it suffers from the serious drawback that consumption lost for any reason — not just the war — is included in the figure. As in the American Revolution decades before, states collected little money and so, the Confederacy was left nearly broke.
Grant committed the United States to a sound currency and fiscal restraint. The need for manpower in the army and the demand for war production should have created a labor shortage that would drive wages higher.
Research our special sections on diverse subjects ranging from presidential elections to naval history. Without the excess labor that the slaves provided, the south was unable to rebuild in a timely manner.
In the North, consumption had regained its prewar level byhowever in the South consumption remained below its level to the end of the century.
Nevertheless, the economic tension between North and South contributed greatly to political tensions. The war was, for the most part, fought in the South, and, following the war, the South was in ruins.
The North and Midwest attracted growing numbers of immigrants, drawn by the promise of economic opportunity and inexpensive land. African Americans continued to suffer. Oxford University Press, What Table 3 does not show is the extent to which these expenses were spread out over a long period of time.
Following the war, the South had little capital and This cultural influence grew out of and was fed by the long-standing mutual economic relationship between England and the South. Southern uniforms were generally of a brownish grey homespun color.
Library of Congress The fertile soil and warm climate of the South made it ideal for large-scale farms and crops like tobacco and cotton. Southern states have higher rates of poverty, poorer educational outcomes, higher infant mortality rates, and lower life expectancy rates, all of the statistics one would expect when when a region has experienced what the South experienced.
The South had issued its own currency when it broke off from the nation, and its currency was rendered worthless because it lost the war. Lee shook hands at Appomattox Court House. The Morrill Tariff of raised rates to 20 percent on average, ending more than thirty years of declining rates.
The efforts of the Confederate government to pay for their war effort were far more chaotic than in the North, and reliable expenditure and revenue data are not available. During the s, after most veterans had died, pension payments remained a huge and corrupting item in the federal budget.
The federal arsenal at Springfield, Massachusetts alone produced over one million rifles for the army, and countless rounds of ammunition. The growing population spurred construction of housing and infrastructure, which in turn attracted more immigrants in a circular process that continued until the Panic ofwhich slowed the economy.
An index of consumer prices is plotted together with the stock on money from early to April in Figure 5.
Even so, the direct cost of the war as calculated by Goldin and Lewis was 1. But what of the other 75 percent? Thus, the UP and CP had incentives to create mileage, but not quality mileage.
Table 4 presents data on prices and wages in the United States and the Confederacy.Transcript of Effects of the Civil War on the North and South Effects of the Civil War on the North & South Ashley Stark & Sydney Mysliwiec Reconstruction: South North Amendments: Photos: Industrialization: After the Civil War the Union initiated a reconstruction phase where the.
Get an answer for 'How was the South affected by the Civil War?The effect on both the land and the people.' and find homework help for other History questions at eNotes. What effect did the war have on the economies of the North & South?
- The South had relied on slaves labor for their economy, by the time civil war had come to an end their economy had crashed. This was because there was no longer slavery and the Union soldiers had burned cotton grins and many other important things that contributed to the South's' economy.
The Economic Costs of the Civil War. Wednesday, March 23, Burton W. Folsom. What was the economic impact of the Civil War on American life?
Reconstruction governments brought bureaucrats to the South to spend money on reunion. More than that, federal pensions to Union veterans became by far the largest item in the federal budget.
The Economics of the Civil War. Roger L. Ransom, University of California, Riverside. The Civil War has been something of an enigma for scholars studying American history. During the first half of the twentieth century, historians viewed the war as a major turning point in American economic history.
In addition to being more industrialized than the South (see "Contrasting Economies" Section), the North had better infrastructure. By the time of the Civil War, an extensive railroad system had been built, with new lines through the Northwest being added.Download