How did the US Civil War affect the Northern and Southern economies?

The Civil War ruined the southern economy. The blockade strangled foreign trade. Sherman's March to the Sea destroyed the infrastructure of its heartland, and, by the end of the war, its currency was absolutely worthless. People burned the banknotes in their stoves and fireplaces for warmth. The industrial north churned out goods such as weapons and uniforms under government contracts, and, in some cases, expanded production to well beyond prewar levels. For the north, war was big business.


It is worth noting that, even though the War ended up being a net positive for the North, many New England factory owners were opposed to the blockade initially, as it cut off the supplies of cotton the textile mills and garment factories needed to do business. In the end, many of these mills were the ones buying Southern cotton, despite the blockade.