Clash of Two Economies

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In the mid to late 1700’s, during America’s early stages of development towards an advanced country, their economy was largely based on agriculture. After several important inventions in communication and transportation and the increase in industrialism, the North’s economy gradually developed a dependence on manufacturing and commerce. This industrialization encouraged immigrants to settle in the Northern states rather than Southern states. (AL, AR, DE, FL, GA, KY, LA, MD, MI, MO, NC, SC, TN, TX, and VA) However, the South’s economy remains predominantly agricultural. Even though there is a difference between the two economies they both still rely on imports and exports to sell either their manufactured or grown goods. While both economies grow stronger, the alliance between the North and South begins to weaken; mostly because of the controversial and important issue of slavery. (economic benefits) This impending issue, along with tariffs and tributes the South has to pay to the North, leads to the Civil War. The subsequent changes in American development leads to the rise of two very different economies. The South, continuing their agricultural ways, while the North moved their economy towards industrialism and commerce. The North, having more advanced technology, found it easier to manufacture goods and transport them, along with people and food, more quickly. This advantage, along with greatly outnumbering the South in man power, it helped the North become victorious in the war. During the late 1700’s, America was starting to be realized as more of an independent country, rather than a breakaway of Britain. The Northern region of America, began to industrialize themselves, with new inventions and systems. This opened overseas... ... middle of paper ... ...of income. But as new inventions gave way, cotton became the most valuable crop. The South continued to increase the production of cotton, and as they did, their economy grew stronger. At one point, the South though that cotton was so valuable to the global market that Britain and France would intervene on the South’s behalf, providing military and diplomatic help, which could have helped them win the war.5 Although the South expected help from other countries, they didn’t help themselves internally. They didn’t setup many railroad systems and the ones they had were not interconnected, there was a lack of telegraph wires which keeps them separated, and they weren’t mass producing weapons or other goods. Even though cotton and other crops were keeping the Southern economy strong, their economy wasn’t ready to fund a war as financially devastating as the Civil War was.
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