Civil War: The Turning Point of American Economy - Essay Sample

Introduction

The American Civil War got fought against the Union or the North and the confederacy or the Southern states. It resulted from the two state's perceptions and arguments on the enslaving of blacks. The transition during the Civil War was significantly impactful to the American Economy. By the 1800s, the economy was entirely agricultural, yet an industrial evolution that got to see the country emerge as an economic power in 1900 was fast encroaching (Adams, 2019). While the North was embracing manufacturing, the South relied on the production and exportation of cotton. Cotton farming required extensive labor to materialize. Thus, slave labor provided a viable and highly cost-effective source of labor (Adams, 2019). Comparatively, the industrial revolution in the North did not necessarily require slave labor. As such, the Northerners proposed the abolishment of the slave trade and labor. The conflict in interest amongst the two states got detrimental to the South's economic activities and resulted in a rift between the two states. It was the primary reason that commenced the Civil War across the country. The American Civil war was primarily fought by

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Economic Causes of the War

Before the war, South America was highly dependent on slave labor. Between 1805 and 1860, the number of slaves increased from one million to four million (Gallagher, 2016). It accounted for value inflation of just 300 million dollars to 3 billion dollars (Gallagher, 2016). Since the state was dependent on agricultural activities, the slaves played a pivotal role in availing labor in cotton fields. Aside from the fact that the amount invested in slavery matched the value of farms and buildings in the South, the value of slaves appreciated consistently with time. The resultant income from the exportation of cotton enhanced economic growth in the South. In the 19th century, there were calls to abolish slavery in the USA (Gallagher, 2016). In order to ensure the South did not incur detrimental economic consequences, emancipation got considered over a specified number of years. The financial burden of the endeavor was more than what slave abolishers were willing to spend. As such, a regional economic split caused a market revolution. Eventually, the lack of reliable solutions caused a violent confrontation between the North and the South.

Land Policy

Regulations that stipulated settlement in the west were implicative to farming techniques in both the North and the South. While the North vouched for policies that encouraged farm settlements, the South was determined to uphold regulations that encouraged the establishment of large plantations for slave labor. In a bid to curb this dilemma, the Homestead Act of 1860 got established, which proposed that 160 acres of land get availed to individuals who wished to settle on farms (Arjona, Kasfir, & Mampilly, 2015). Although the Northern states supported the bill vehemently, the South was against it. Regardless the congress passed the bill passed with a landslide vote in its favor. Despite this, the then President Buchanan vetoed the bill, which did not settle well with the North.

Internal Improvements

In 1823, the Erie Canal got developed in the North. It resulted in enthusiastic support for transportation improvements, then referred to as internal improvements (Arjona, Kasfir, & Mampilly, 2015. Consequently, in 1840, following the establishments of railroads, it necessitated the need for subsidies in transportation (Arjona, Kasfir, & Mampilly, 2015. However, the South got not particularly moved with the need for internal improvements. It manifested during the Pacific Railway Bill in 1860 that it proposed a railway network to the West Coast (Arjona, Kasfir, & Mampilly, 2015. Congressman from the South collectively rejected the bill resulting in its further split from the rest of the states.

Tariffs

The South favored cheap imported products from the British, the North got concerned with its implications on local production, and thus they proffered the introduction of tariffs. A move that was vehemently opposed by the South. The East and West perceived it as a source of government revenue though they did not necessarily favor inflation in imports. The West and East seconded the North with the condition that tariffs get maintained at affordable levels (Arjona, Kasfir, & Mampilly, 2015). The move was perceived by the South as yet another bargain at their expense, thus exacerbating the rift.

In conclusion, The North and South economic priorities got considered highly diverged. Although the Industrial revolution was necessary for the country, it would have gotten incorporated at a cost to the west. The abolishment of the slave trade and labor meant a lack of labor cotton farms in the South. The introduction of tariffs witnessed an increase in the prices of imports that the South was highly dependent on for their economic activities. The opposition of the Homestead Act of 1860 by President Buchanan, though passed by congress, did not settle well with the North (Arjona, Kasfir, & Mampilly, 2015). It further exacerbated the antagonism between the North and the South. The two sectors had to interfere with each other's economic goals and objectives in inorder to proffer their particular interests. Eastern and western states supported Northern states, which got perceived by the South as a bargain at their expense. Most southerners who were into agriculture were against mechanization and preferred the use of cheap labor while Northerners, who were industrialists, preferred protectionism, and supported tariffs.

References

Arjona, A., Kasfir, N., & Mampilly, Z. (Eds.). (2015). Rebel governance in the civil war. Cambridge University Press.

Gallagher, G. W. (2016). The American Civil War: The War in the East 1861-May 1863. Routledge.

Adams, E. D. (2019). Great Britain and the American Civil War. BoD-Books on Demand.