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When slave labor decreased in the Upper south, diversification of agriculture was accompanied by a more rapid rate of urban and industrial development. This resulted in Virginia, Maryland, and Kentucky residents divided on the decision of the Deep South's plantation economy or industrializing the free labor system in the Upper South. In the ideal "free labor" system, working for wages was seen as only a temporary step towards owning one's own workshop or farm. Economic growth seemed to offer everyone a chance to become his own boss. This "republican" vision of a community of productive, independent families inspired many Americans, especially in the North and the growing Midwest. During the Civil War, farmers, workers and businessmen united to protect the "free labor" system against the threat posed by slavery. This free labor coalition built the Republican party and filled the ranks of the Union Army.

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