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During the Civil War, the Southern economy faced severe disruptions due to the conflict, leading to widespread inflation and shortages of essential goods. The Union's naval blockade significantly hindered trade, crippling the South's ability to export cotton and import necessary supplies. Additionally, the reliance on slave labor became increasingly problematic as enslaved individuals fled or resisted, further straining agricultural production. Overall, these factors combined to create a dire economic situation for the Confederacy.

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