ECONOMICS OF THE CIVIL WAR

1. ECONOMICS OFTHE CIVIL WAR Julia Feldman, Kaitlin Homberg, Jeremy Sussman, Luke Bergamasco, and Deana Salvadore

2. ECONOMY OF THE U.S.DURING THE ANTEBELLUM • Industrialized • Factories • Woolen Mills • Steel Factories • Coal Mines • Reliance on commerce and trade • About ¾ of the population lived in rural areas, including farms and small towns • Cotton was exported to England

3. Economic Growth • In 1607, Virginia developed a colonial economy highly dependent on the sale of wheat, corn, and especially tobacco in British markets • The economy of the South changed dramatically between 1790 and 1850, caused by the growth of cotton, the deep South was especially suited to the cultivation of cotton • The fertile soil and ideal climate provided security for the mass production of the crop.

4. TARIFFS The other critical economic issue that divided the North from the South was that of tariffs •  Southern Congressmen generally opposed it and Northern Congressmen generally supported it • Southerners generally favored low tariffs because this kept the cost of imported goods low • Northerners preferred tariffs because it encourage consumers to buy American made products BUT they became too expensive for southerners to afford.

5. The chart illustrates the increase in American cotton exports from 1820 to 1860. • In 1820, the United States exported about $25 million worth a cotton. • Between 1845 and 1860, the United States saw a sharp increase in exports of cotton. • By 1860, the United States was exporting $175 million worth of cotton. • The total number of all U.S. exports in 1860 was $350 million. • Cotton made up ½ the number of U.S. exports from 1820 to 1860.

6. The charts show a disparity between the North and the South. The North had many more resources than the South

7. It’s the Economy Stupid… • The economy of the United States was a major cause of the Civil War • The economy of the South was based on slave labor that grew cash crops and exported cotton, rice, and tobacco to England • The South’s economic way of life was in jeopardy • Poor leadership was not to blame because congressional leaders were hard at work trying to find a compromise, which goes back to the economy • Westward expansion was not to blame because finding new territory would only help the economy of the U.S. • According to the 5th Amendment, slaves were property and did not cause the Civil War. • Violent episodes such as Bleeding Kansas and Harper’s Ferry were caused by citizens. • The states were working diligently to find a solution to the slavery issue.