Section 1
Overview: The North and South Develop Diverging Economies
Key Idea
In the decades before the Civil War, the North built an economy based on industry. Factories in growing cities produced goods, and new railroads connected these areas to farms in the West. Many factory workers were recent immigrants.
The South’s economy, however, remained focused on agriculture. Its wealth came from huge plantations growing cash crops like cotton. This entire system depended on the forced labor of enslaved people.