The Confederacy decided to withhold its cotton from overseas countries, in order to pressure them into siding with the South and sending aid.
Unfortunately for them, there happened to be a glut of cotton on the world market, so nobody felt the pressure.
Meanwhile the South was not able to import war supplies in exchange for its cotton.
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One major issue that caused the Confederate economy to suffer so badly during the Civil War in the United States was the fact that supply routes were cut off by Union troops. The burning of several cities in the South only added to the strife in the South.
The Federal blockade prevented them from carrying out trade, particularly in cotton, overseas. Cotton was the South's main source of income, so to lose that was an incredible blow to the economy.
just in general, the north was in debt from providing all of the supplies for the war
North
Because of the Civil War in the North, income tax was invented.
Blockade
The north
The Civil War was extremely unpopular war at the outset. A mandatory draft was considered unnecessary. The risk of death was high. It caused riots and other protests.