impact of civil war and the ECONOMY

Question 1

give 4 impacts of the civil war on the economy

Answer 1

• stimulated demand for manufactured goods (guns)
• mass production methods developed
• introduced paper currency
• tariffs reduced influence of foreign goods

Question 2

what are the 7 ways the civil war affected the economy in 1860-70s

Answer 2

availability of land
population growth
transport
availability of capital
role of the government
corporations and trusts
technological innovation

Question 3

how did availability of land impact the economy in the 1860s/70s (2)

Answer 3

• westward expansion and increased settlement stimulated growth through new markets and development of railroads
• inc demand of food led to inc mechanisation of agriculture led to inc demand for manufactured goods

Question 4

how did the population growth affect the economy in the 1860s and 70s

Answer 4

-rapid growth provided cheap labour for economic expansion and stimulated demand fkr food

Question 5

give two statistics about population growth as an effect on the economy 1860s/70s

Answer 5

• 1860 population 31.5mill—> 50mil
• 2.8 million immigrants came to mainly cities

Question 6

how did transport effect the economy in the 1860s/70s

Answer 6

• allowed for faster transport of goods
• encouraged competition —> prices decrease and quality inc via technological developments

Question 7

give two statistics about how transport affected the economy 1860s/70s

Answer 7

• 1860-1880 railroad track mileage tripled
• employed 1 million workers by 1900

Question 8

how did availability of capital effect the economy 1860s/70s (2)

Answer 8

• entrepreneurs borrow money to develop businesses
• huge profits from civil war invested into highly developed stock market

Question 9

give a statistic about the availability of capitals effect on the economy 1860s/70s

Answer 9

1865 annual turnover for New York Stock Exchange was over $6 bil

Question 10

how did the role of government effect the economy 1860s/70s

Answer 10

federal gov was laissez faire and no regulation so businessmen had unlimited hours and no taxes on profits

Question 11

give a statistic showing the effect role of gov had on the economy 1860s/70s

Answer 11

tariffs inc to as high as 50% for imported goods so US was cheaper

Question 12

how did technological innovation effect the economy 1860s/70s

Answer 12

-businesses rapidly expanded with low prices, stopping unions and reinvesting into new manufacturing equipment eg Carnegie and steel mills

Question 13

how did corporations and trusts effect the economy 1860s/70s (2)

Answer 13

• corporations could own number of businesses, hire management to run it, buy sell and own property
• trusts were legal methods of avoiding state law by becoming ‘trustee’ for stocks/property company wasn’t allowed to run