Slavery had a tremendous impact on all aspects of the South from 1810 to 1860. The effects of which can still be seen today in states like South Carolina and Georgia. In these years, Slavery was what kept the South alive and at the same time, gradually aided in its demise. The limited diversity of the Southern Economy and the slaves led to the fall of the Southern economy.
Slavery had an extensive impact on the economy of the Southern States. Because there was essentially only one main crop that the South produced, they were bound to the North. The economy evolved around cotton industry. The biggest part of the cotton industry was the slaves. They were the major investment in the South. Without them, the work could not have been done profitably. The invention of the cotton gin spurred the need for more slaves now that new cotton could be produced. Slaves proved to be the backbone of the economy.
However, at the same time they were drastically hurting the economy by limiting it. Because of slavery, there was no immigration into the Southern States. Immigrants could no compete for the lowest wage because there were no wages. Because of this, there was no circulation of capital in the South. The only markets in the South were the plantation owners. Even then, they did not buy goods from the South or North because of the low prices they got in England and the low shipping cost because items were shipped on their own returning vessels.
This also relates to the effect of the social structure at this time in the South. The slaves were obviously at the bottom but the next classes up were not much better off. The poor whites did not see their hardships as bad because they thought, “Hey, at least were not slaves”. The large slave plantations were concentrated in the Deep South. States like Georgia and South Carolina contained the largest amount and largest groups of slaves. In the upper South, slave numbers were much smaller and ...