Effects of the Civil War on Economies

Ever since the Civil War, economies were changed for the good and bad. North and South alike experienced these changes. The North had the greater amount of good changes throughout and after the war. The South had more of the negative effect on their economy. No matter what happened during the war to each of the economies separately, now, after the war, they would have to deal with them together as one country again.
Throughout the war, the North’s economy had strived due to the help of the federal government. The federal government had subsidized construction of a national railroad system. Along with that, they set up a system of federally charted banks. In turn, these banks set requirements for loans and provided for banks to be inspected, which helped to make the banking system safer for investors. War affected many industries in the North. Some industries flourished while others saw a decline in business. Many weapon related industries saw a huge growth in their production due to the war as well as iron and coal mining. These growths were due to the massive amounts of purchases of war supplies by the Union army. Many supplies of war supplies to the government grew rich and had a lot of money to invest in other industries after the war. The North also got much help from Great Britain. They had always depended on some of the US products and it didn’t stop during the war, the needs and desires only grew. By the end for the war, the North’s most flourished industries were coal, iron, and merchant ships, among others. Much of the North’s economy flourished throughout the war due to help from the government.
The South was not as lucky as the North was. The South’s economy didn’t flourish at all. It suffered desperately throughout the entire Civil War. The biggest blow to the southern economy was the fact that there was no more slavery. Now they had to pay people to perform the labor that slaves had done free. The war also left forty…

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