This still left a huge shortfall in revenue that was not covered by either taxes or the printing of money. Confederate bonds and currency were now worthless, depriving the region of a great proportion of its wealth.
The printing of money and borrowing on such a huge scale had a dramatic effect on the economic stability of the Confederacy. Staggering though these numbers are, they represent only a fraction of the full costs of the war, which lingered long after the fighting had stopped.
The financial markets of the North were strained by these demands, but they proved equal to the task.
Old South, New South: Railroad mileage in the U. What stands out in addition to the enormity of the bill is the disparity in the burden these costs represented to the people in the North and the South.
The Promise of the New South: The growing population spurred construction of housing and infrastructure, which in turn attracted more immigrants in a circular process that continued until the Panic ofwhich slowed the economy. The Compromise of which ended Reconstruction solidified Northern control of Congress.
Consequently, the Northern economy was able to finance the war without a significant reduction in private consumption. Retrieved September 22, from Encyclopedia. By the beginning of prices had already doubled; by middle of they had increased by a factor of Cite this article Pick a style below, and copy the text for your bibliography.
Each of these policies profoundly shaped the development of the American economy for the rest of the century. Even so, the direct cost of the war as calculated by Goldin and Lewis was 1. In South Carolina before the war, for instance, there werehogs. The economy after the Civil War was initially driven by the construction of railroads connecting the industrial communities of the northeast and the agricultural regions of the Midwest and plains.
First is the failure of the Richmond government to finance their war expenditures through taxation. Oxford University Press, Freight carried increased from 2. Financing the War No war in American history strained the economic resources of the economy as the Civil War did.
The difficulties of collecting taxes and floating new bond issues had become so severe that in the final year of the war the total revenues collected by the Confederate Government actually declined.
Table 4 presents data on prices and wages in the United States and the Confederacy. This control led to ever higher tariffs, reaching an average of 57 percent with the Dingle Tariff ofand a continuation of government subsidies for railroad expansion.
Behind the protective wall of these tariffs U. Indeed, several economic historians have claimed that the creation and subsequent retirement of the Civil War debt ultimately proved to be a significant impetus to post-war growth Williamson ; James The war had been mostly fought in the South and much of its wealth had been destroyed.
Another contrast was the much higher fraction of revenues accounted for by the issuance of currency on the part of the Richmond government. As cotton production increased, however, the price fell. Prices and the stock of money had risen at roughly the same rate.
Inthe railroads standardized the gauge width of the track, bringing the South into a national railway system. Not surprisingly, wage earners in the South saw the real value of their wages practically disappear by the end of the war.
There were four pieces of legislation that passed during the Civil War which were critical to Northern economic development during the decades after the War.
The expansion of steel led to comparable increases in mining and other basic industries. What Table 3 does not show is the extent to which these expenses were spread out over a long period of time.civil war, economic impact of (issue) The economic consequences of the American Civil War ( – ) are largely due to Northern control of the federal government during and for several decades after the War.
evaluate the impact of the civil war on political and economic developments in two of the following regions the south the north the west KEYWORD essays and term papers available at killarney10mile.com, the largest free essay community. ***Evaluate the impact of the Civil War on political and economic developments in TWO of the following regions.
The South The North The West Focus your answer on the period between and ***Explain why and how the role of the federal government changed as a result of the Civil War with respect to TWO of the following during the.
E Y 26 Evaluate the impact of the Civil War on political and economic developments in TWO of the following regions: South, North, West. Focus your answer on the period between E Y Q4 26 Explain why and how the role of the federal government changed as a result of the Civil War with respect to TWO of the following.
Jan 15, · Evaluate the impact of the Civil War on political and economic developments in TWO of the following regions. The North The South The West focus on the time period of to era of reconstrucionStatus: Resolved.
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