Question

How did slavery affect the Southern economy?

Answer 1

Hint:Slavery was extremely profitable. Cash crops like sugarcane, cotton and tobacco, going hand in hand with slavery allowed the prospect of a greater monetary benefits. It grew to become very entrenched in the Southern economy. It had both negative and positive impacts to the economy, and welcomed opposition from numerous sources due to the inhuman treatment of the slaves.

Complete answer:
During the 1600s, American colonies operated as agricultural economies, driven largely by the servitude of uneducated, poor, and unemployed labourers from Europe looking for employment opportunities. In exchange for their work, they received food and shelter.During 1680s, slavery became morally and ethically acceptable, and there was a tiny switch from European labourers to the enslaved Africans.
To meet the need of growing cash crops, large labour or human capital was acquired by wealthy planters from west Africa. The slave auctions were developed as the demands of enslaved Africans grew.

With the invention of cotton gin, increased processing capacity and larger cargo ships, the economy of the South expanded its cotton based economy. Between 1801 and 1835 alone, the U.S. cotton exports comprised half of all U.S.A’s exports which allowed slavery to bring lots of profits. Enslaved people became a legal form of property which could be used as collateral in business transactions, to pay off debt, and a source of tax revenue for state and local governments.

Note:The Abolitionist movement began in 1830s which demanded abolition of slavery. It was finally abolished in 1865. The negative impact slavery had on Southern economy included high debts, soil exhaustion, lack of technological innovation and decreasing development of industries. It transformed into a nearly single crop production.