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Totally ruined.

The Union naval blockade became increasingly effective, so they couldn't export their plentiful cotton in exchange for war supplies.

They had almost no industry, and had to build it from scratch.

Their currency was not based on any hard assets, only on a promise to pay on the achievement of Southern independence - which never happened.

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Q: How was the South's economy affected by the war?
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How was the souths economy affected by the war?

Totally ruined. The Union naval blockade became increasingly effective, so they couldn't export their plentiful cotton in exchange for war supplies. They had almost no industry, and had to build it from scratch. Their currency was not based on any hard assets, only on a promise to pay on the achievement of Southern independence - which never happened.


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How might the banning of slavery have affected the souths economy?

It forced the cotton plantation owners (the South's biggest industry and export) to pay their (from now on) employees and allow them to leave if they wanted to. The South's economy was however most affected by the Civil War that had completely stopped the South's cotton export. At the end of the war the Southern States found that India and Egypt had in the meantime largely taken over the cotton market. The banning of slavery and the resulting rising of the cost of labor thus mainly added to the many economic problems the South faced as a result of the Civil War.


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