Economic features of North and South prior to the Civil War

Running Head : Pre-Civil War Economy

Economic Features of the North and South prior to the American Civil War

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Abstract

Economic disparities between the North and the South was one of the factors behind the occurrence of the American Civil War . Even if there are other factors responsible for the said hostility , such as political and social factors , the wide economic gap between the North and the South affected their political and social ties to the extent that they had no choice but

to go to war against each other

Economic Features of the North and South prior to the American Civil War

The social , economic and political differences between the North and the South were said to have been the causes of the American Civil War The two regions competed with each other by trying to impose their respective beliefs on the country as a whole . Despite several compromises in the years before the Civil War , the animosity between the North and the South was already uncontainable (MSN Encarta , 2007 . Among the contrasting economic conditions present in the North and South before the Civil War were

Slave Agriculture versus Industrialization

Cotton (also known as King Cotton ) was the major crop of the South by 1860 , representing 57 of all US exports (MSN Encarta , 2007 . The cotton industry in the South was so profitable that it resulted in the region 's dependence on the plantation system , which , in turn , was reliant on slave labor . The North , on the other hand , was a well-established industrial society . Laborers (not slaves ) were needed to sustain the region 's industrialization . Consequently , immigration was encouraged - immigrants from Europe worked in the North 's railroads and factories and settled in the West (MSN Encarta , 2007

The South manufactured little , opting instead to import almost all manufactured goods and to cash in on the profitability of its cotton industry . As a result , Southerners strongly opposed high tariffs (taxes imposed on imported articles that raised their prices in the process However , the North had to exact tariffs on its products as a form of protection against cheap goods from foreign competitors . Furthermore the North used the income it generated from tariffs to build roads turnpikes and canals (MSN Encarta , 2007

The Market Revolution

Since the North had an industrialized economy , its farmers and businessmen produced surplus goods that were sold to both local and international markets . Most Northern farms were business operations as well , producing marketable crops such as grain , meat and dairy products that were sold to Americans living in towns , cities and industrial villages . In exchange for these agricultural products , Northerners from the urban areas provided farmers with finished products such as hats shoes and furniture that were either locally-made or imported from Europe . The self-sustainability of the North 's internal market turned it into one of the industrial and financial centers of the world . Advances in transportation such as steamboats and railways allowed the North to engage in international trade...