Factories were being built in the South, which were financed in the North. They made less valuable products but the Noth gained more money by doing this because they hired newly freed slaves, who took less pay.
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Major economic problems began to take hold in the 1870s.
The main roles of the state of New York in the development in the United States were an economic leader and a major political force. New York has always been a major economic leader for the US, ever since Britain obtained the middle colonies in the mid 1700s and it produced the majority of the grain in America and had one of three major ports (Massachusetts and Virginia having the other 2) in the colonies. During the Industrial Revolution, it became the economic power house it is today through major growths in production, trade, and population. Other instances such as the construction of the World Trade Center (they were attacked for a reason) show New York's presence as the largest economic center in the country and arguably the world. New York established itself politically with the Constitutional Convention because of its large population and land claims. After the Civil War, it became the largest political force as Virginia was crippled in reconstruction. To this day it still is one of the largest states (in population) in the country and this makes it the third largest state for elections. If not for the support of New York, 11 of America's presidents would have lost their elections. It and California now serve as a major part of the Democratic party.
The internet was a major technological development in the 1990s
Two types of national issues and attitudes led to the end of Reconstruction in 1877: political and racial. By 1877, the nation and especially the North had issues unrelated to Reconstruction on its mind. The scandals of the Grant administration, including the "Whiskey Ring" caused good government to be a major issue for many. The Panic of 1873 was still causing economic disruption in 1877, and this economic crash took the focus off Reconstruction. Racial issues and attitudes also helped bring an end to Reconstruction. Many Northern whites were not committed to black equality or rights. By 1877 they were simply tired of taking self-government from Southern whites for the benefit of African Americans.
The internet was a major technological development in the 1990s