Slaveowner's Economic Failure

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When President Lincoln declared the slaves in the rebelling states free in his Emancipation Proclamation in 1863, and the freeing of slaves ensued, the South was thrown into a period of economic difficulty (Slavin, 2001). Due to their agriculturally centralized, slavery-dependent economic system, the South experienced economic downfalls as they lost their workers and the production of crops in turn declined (Engerman, 1982). In addition to their decreased production, slaveowners’ economic issues were furthered by the lack of compensation for the slaves that they had lost because of the emancipation (Engerman, 1982). In a society of free laborers in an agricultural system and no large manufacturing capabilities, the Southern economy was troubled

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