The Economic Effects of the Civil War

—Estimated loss of human capital – 1,8 billion USD on both sides
—Direct government expenditures – 2,3 billion in the North, 1 billion in the South
—Destruction of property – 1,5 billion USD (mainly in the South)

Between the end of the American Civil War and the end of the nineteenth century there was an intense industrialization. This process was conducted in a much more accelerated than in Britain. In this transformation process industrial production rose from less than 2,000 million dollars a year to more than 13,000, just as the number of employees in industry, mining, construction and services increased from less than 4 million people to 18 million. Factors were determined industrialization abundance of natural resources, population growth, capital accumulation and foreign investment, immigration also provided a wide and cheap labor force. During this period highlighted the consolidation of companies in large scale units. This consolidation was based largely on the birth of the trust agreements that were shareholders of different companies in a particular industry to unify the leadership and management of the same and reducing competition

Economic crises

—Panic of 1873
—Start of the long (or great) depression (until 1879 – 65 months)
—It began with a crash on the Vienna Stock exchange
—Panic of 1893
—It was caused by railroad overbuilding and shaky railroad financing which setoff a series of bank failures – similar to the tech bubble

In total over 15,000 companies and 500 banks

International economie

—International trade
—The share of USA was growing – 9,1 % in 1890
—Shift from agricultural products to industrial
—Trade with Europe dominated
—From the start of the 20th century the current account of the BoP recorded surpluses
—Heavy protectionism in the USA
—International capital flow
—During the turn of the centuries USA changed from international debtor to creditor

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