How was the Civil War also a war of economies?

Answer 1

The Civil War was a war between two different economic STYLES, not two economies. Both the North and the South were fighting to protect aspects of their economies that they saw as necessary for their way of life to be upheld.

North

• The North was a heavily industrial economy that manufactured goods and sold them outside of the United States and across the country.
• The North operated an economy where workers were paid to do their jobs, though in some cases the working conditions and the long hours of the workers didn't equal the amount of money the workers were earning.
• The New England region of the North was made up of a number of merchants, who assisted in carrying finished manufactured products abroad in exchange for a cut of the profit.

South

• The South was an agricultural-based economy that relied on a few specific kinds of crops to survive: tobacco, cotton, and in some cases wheat.
• While the North used paid workers to fill the job roles in the factories, the South used slaves to keep their economic machine running, but in some cases the practice of using slaves cost them more money because they had to pay to maintain food and lodging for the slaves.

Answer 2

Economics played a tremendous role in the US Civil War. The Union had more economic resources than the Confederacy. The Union was able to successfully blockade major Confederate ports, thus cutting the South off on foreign trade.

The South was certain that the previously strong demand for cotton by Great Britain would bring in more money. As it was, the British were in a sluggish economy and it's demand for Southern cotton was reduced.

The industrial Union was able to produce more necessary products to fight the War than the South. The Union was able to tax a larger tax base to help it provide adequate supplies to conduct the War.