The period after the Civil War saw a major transformation of the American economy and society as industrialisation took place.
Although the Civil War is sometimes seen as a struggle between the industrial North and agricultural South, the North itself was still essentially an agricultural section in 1865.
- However by 1900 the USA was producing 30% of the world’s manufactured goods, this meant employment in manufacturing, mining, construction and services rose from 4 million to 18 million by 1900.
- The USA also became the centre of commercial invention: In the 1850s there were an average of 2000 patents granted each year, but by the 1890s this reached 21,000.
Background
The Civil War played a key role in economic expansion but not the greatest role.
Economic growth during the Civil War was actually lower than before or after.
Rather the significance of the war stems from the Northern victory, rather than stimulation of demand in heavy industry brought by the war.
The absence of Southern politicians in Congress after the war meant that a number of Acts could be passed that had been held up by disagreements between the areas beforehand.
For example, the Banking Acts.
- They established a system of credit that made it easier for business men to get loans, allowing industrialists to free themselves from debt.
- The Homestead Act, Land Grant College Act and the Transcontinental Railroad Act encouraged western expansion and the development of a national market.
As well as this, war-time savings and the needs of reconstruction meant that in the aftermath there would likely be an economic boom– need for workers.
The triumph of the North during the Civil War was seen as responsible for the triumph of manufacture and industry