The economies of northern and southern states and the US Civil War - Essay Example

Economies of northern s and southern s and the Civil War The era of civil war had lefta lot of lessons for the Americans to learn. Majorly, the economy of United States of America was divided into its regional schema of working in terms of politics and laws. Many laws were created right after the civil war as it had put both positive and negative impact on the economy of United States, in general. The aim of this paper is to understand the difference within the economies of Northern and Southern states of America. In general, it can be said that the economic condition of both northern and western states during the civil war was better in many ways. The American economy was once considered as an agricultural economy. It was noted that during the civil war, it transitioned to an industrial economy of the world. By 1900s, it was marked that America became one of the leading economies of the world. However, it should be well-stated that the industrial revolution was not observed in the Southern states. The development and revolution was only noticed in the northern states or the area near the Mason-Dixon Line (Davenport 78). Talking about the Southern states during 1900s, they majorly depended on the selling of the staples international market. It was a constant flow of supply within the international market by the Southern states that ended up making cotton as the most valued export from the United States. The constant flow also allowed cotton to overshadow other exports that were providing a lot of advantage to the country. It was the same era when United States proved itself as the supplier of 29% cotton’s overall demand in the world. Despite increased export measure, it was observed that the Southern States had a poor transportation network. Another issue was concerning the banks that were mostly present in the Northern states of the country. Economists state and review that if there was an access to banks as well as proper transportation system then it would have been easier for the Southern states to excel in the export of cotton in the international market (Khramov and Lee 22). On the other hand, the progress of the American economy within its northern states showed a different scenario. Increased stress was laid on the industrial revolution. In that manner, American economy already showed a hike in its working schema. It will not be incorrect to state that United States became a full-fledged economy within its Northern states. Many researchers have claimed that the Northern States vested a lot of confidence within the American defense system (Northrup 268). For instance, the industrial revolution helped America in meeting its demand for the war ability. It is also considered that with a small pace, Northern states were able to produce a high number of cotton textiles, wool as well as leather goods. In comparison with the Southern states, the difference was more than thirty percent. It will be easier to understand that the number of people who were associated with agriculture within the Northern states were limited to 40 percent. The similar ratio was observed to be 84 percent in the Southern states of America (Northrup). Limited number of farmers who were associated within the Northern states was outnumbering those in the Southern states in terms of production. As evident from the discussion in above, the major reason behind such a wide difference in the percentage was mechanics. The agricultural process in the Northern areas was dependent upon the mechanized ways. However, in terms of the Southern states, it was majorly different in approach. The method of agriculture that was observed in the Southern states was labor-intensive. With the help of the modernized ways of farming, it was observed that Northern states were able to produce half of the nation’s corn, as well as oats (Odekon 4). It is an evident fact that if the economic situation of any country becomes positive then the process of urbanization is likely to take place. It is the similar stance that took place in the case of Northern and Southern states. Since revolution took place in the Northern states of America, the process of urbanization became high paced in the north. It was noted that the number of people who came to urban areas for far more than that of in the Southern states. The cities that grew in the Northern areas as a process of urbanization included Chicago, Cincinnati, Detroit etc. (Martin). The impact of the economic boom affected many other aspects as well. For instance, such a high paced process of urbanization in the Northern states resulted in attracting Europeans who opted for immigration in the US. A rough estimate marked that 7th-8th of the immigrants settled down in the Northern states of America. There were many other aspects that were noted to have a direct impact on United States. The number of males that joined military from the Northern states is noted to be approximately 3.5 million, while on the other hand Southern states marked only one million of men being a part of the American military (Odekon 861). Herein, an important fact that is needed to be understood is that the condition of the Southern States in terms of economic contribution was not a result of any economic disadvantage. It was rather noted that Southern States had a lot of wealth in many ways. The only factor that kept the economic contribution of the Southern States to the minimal was slave economy. With the passage of time, the overall economic value of the slaves in US was observed to be higher than that of factories, banks etc. As per the historic records, the rate of cotton was noted to be all-time high during the civil war. At this time, Southern states believed that internationally, they will be given support for the reason of diplomatic assistance (Khramov and Lee 17). The economic strength of both Northern and Southern states of United States were clear in the same era. It was stated that increased ability of the Northern states was observed during the sustainable time of the war. It was noted that the Southern states were not able to sustain a war economy. The economy of the Southern states was noted to become soar while the Northern state continued to rapidly increase its supply to the open market. The working schema of the economy of Northern states of America was not different than that of the rebellion during the wartime. In a very short span of time, it was noted that the Northern states completely overshadowed the economy of the Southern states (Reid 175). The mechanized agricultural support from the Northern States was evident of the fact that they were able to save a lot of time for a single farmer. The process of agriculture that included sowing, harvesting etc. was being undertaken by only one farmer because of the machines that were made available to them. The need of the mechanized tools was observed for another reason as well. It was noted that majority of the men were being admitted to the military. Therefore, a limited number of farmers were left who had to support the international as well domestic demands of goods. Therefore, mechanized agricultural methods had to be installed at any cost (Martin). The need for effective economic interaction domestically and internationally, United States needed an excellent transportation system. As a result, it was noted that the Northern States of the United States were able to draw an effective railroad system that was also claimed to be the best railroad system of its time. The movement of goods as well as the military troops with the help of railroad network was possible. On the other hand, it was an opposite situation in the Southern part of the United States. Thus, it can be stated that the economy of the Northern States of America was so strong in general and in the time of war that it was able to maintain its railroad system. The transportation industry, in general, boomed in the Northern states of the US (Odekon 4). It was noted that the economic progress of the Southern states of the US almost halted during the war. The era right after the civil war brought a lot of damage to be cleared and mended. People in the Southern states become homeless and it affected the production of agricultural goods largely. The Southern states showed a completely different picture than before. The states were noted to be one of the most effective and major contributors in the overall economy of the US. However, the resistance of the farmers and politicians of the South resulted in bare lands. Little factors or railroad system that was present in the Southern states were majorly affected. The slaves who were brought to the Southern states were now homeless and the economic production almost became zero. The white population that brought slaves from African states were either wiped off or vanished from the United States as the impact of the civil war became harsh in all aspects. In order to bring stability, certain initiatives were undertaken. For instance, farmers in the Southern states who had the means to undertake farming were given the title of the tenant farmers on the available land that once belonged to their respective owners who were not there to take their ownership anymore. However, many things had changed after the civil war. The farmers in the Southern states were actually renting out the fields and they were able to give the rent whenever they could at the time of harvest or before sowing. It was also noted that they were not made limited in terms of farming the product that they wanted to get. They were free to grow the crops as per their own demand rather than the stress from the landowners. Sharecroppers’ was the new aspect in the Southern states as the people who wanted to make money took tools of farming from the landowner and started to do farming at a given or settled amount. However, economists believe that it was still a way for the white to feel supremacy as they were renting their land and tools that made the farmers liable to them in many ways. Nevertheless, it was considered to be the best solution at the time of chaos and farming that was under great impact of the war (Northrup 258). Through the above analysis, it can be well stated that the era during the civil war worked in favor of the Northern states of the US. It was because of the free manner of running the economy. On the other hand, the Southern States of the US were labor-centric which made its progress limited to the agricultural sector only. At the time when Northern states of the US were in the fold of the industrial revolution, Southern states were still investing in the labor power to run its agricultural support. At the same time, many economists have stated that the industrial revolution within the Northern States had actually worked as a disadvantage to the Southern States. As a response for defense, it is stated that it was merely because of the war that affected many people trying to produce goods for trade. In return, the examples from the Northern States of America is given that were able to undertake economic progress during the war era as well. There were a lot of consequences that were observed in the Southern states after the civil war. The lands were rented and in this way, the affected farming of the Southern states became in a working state. Thus, overall it can be stated that the free farming and economy had remained the locus for the Northern states of United States that allowed better and effective growth. The difference between the Northern and Southern states of America was major and one of the reasons behind economic theory that was contributed soon after the civil war era. Works Cited Davenport, John. The Mason-Dixon Line. New York: Infobase Publishing, 2004. Khramov, Vadim and John. Lee. The Economic Performance Index (EPI): an Intuitive Indicator for Assessing a Countrys Economic Performance Dynamics in an Historical Perspective. San Francisco: International Monetary Fund, 2013. Print Martin, Paul. "Economic Differences Between the Northern & Southern Colonies." 2015. Ehow.com. 09 December 2015 . Northrup, Cynthia Clark. The American Economy: Essays and primary source documents. New York: ABC-CLIO, 2003. Print Odekon, Mehmet. Booms and Busts: An Encyclopedia of Economic History from the First Stock Market Crash of 1792 to the Current Global Economic Crisis 3rd Edition. New York: Routledge, 2010. Print Reid, Brian Holden. The Origins of the American Civil War. New York: Routledge, 2014. Print Works Cited Khramov, Vadim and John. Lee. The Economic Performance Index (EPI): an Intuitive Indicator for Assessing a Countrys Economic Performance Dynamics in an Historical Perspective. San Francisco: International Monetary Fund, 2013. Northrup, Cynthia Clark. The American Economy: Essays and primary source documents. New York: ABC-CLIO, 2003. Martin, Paul. "Economic Differences Between the Northern & Southern Colonies." 2015. Ehow.com. 09 December 2015 . Odekon, Mehmet. Booms and Busts: An Encyclopedia of Economic History from the First Stock Market Crash of 1792 to the Current Global Economic Crisis 3rd Edition. New York: Routledge, 2010. Reid, Brian Holden. The Origins of the American Civil War. New York: Routledge, 2014. Read More