1. Describe the impact of the war on the economies of the North and South.

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jrwilliams4321 eNotes educator| Certified Educator

I assume you are referring to the American civil war. If not, resubmit and disregard the following... In short, the story of the war has much to do with economics. At the beginning of the war, the south had to be aggressive against the north, as they didn't have the financial or natural resources for a long engagement against the north. The southern economy, of course, was based on agriculture (and in turn, slavery)... there were tons of huge plantations that grew cash crops such as cotton throughout the south.  That said, the south had "put all their eggs" into the plantation basket.  They had no industry to speak of, no factories to produce the necessary supplies for war.  The north, on the other hand, had an industrial economy with many factories and mills ready to create anything that the north would require for war.  Following the end of the war, the Southern economy collapsed.  Without slave labor, plantations began to fail as businesses.  However, in the north, the industry began a "golden age" of production.  Within the next twenty years, the "big business era" of history is beginning in the north, with massive amounts of industrialization and new products.  In many ways, the South is still today trying to catch up, economically speaking, to the north.