Even after 150 years, the Civil War evokes memories of great men and great battles. Certainly that war was a milestone in U.S. history, and on the plus side it reunited the nation and freed the slaves.
Few historians, however, describe the costs of the war. Not just the 620,000 individuals who died, or the devastation to southern states, but the economic costs of waging total war. What was the economic impact of the Civil War on American life?
First, the aftermath of war was expensive. In 1860 the U.S was in a debt of $65 million dollars, however five years later the U.S. was in a debt of $2.7 billion dollars. The Second problem was that the taxes were very low, we had no income tax, no estate tax, and no excise tax, and even no whiskey tax. We had done exactly as Thomas Jefferson had predicted as the future for the U.S.
"What farmer, what mechanic, what laborer ever sees a tax gatherer of the United States?" Thomas Jefferson
Few historians, however, describe the costs of the war. Not just the 620,000 individuals who died, or the devastation to southern states, but the economic costs of waging total war. What was the economic impact of the Civil War on American life?
First, the aftermath of war was expensive. In 1860 the U.S was in a debt of $65 million dollars, however five years later the U.S. was in a debt of $2.7 billion dollars. The Second problem was that the taxes were very low, we had no income tax, no estate tax, and no excise tax, and even no whiskey tax. We had done exactly as Thomas Jefferson had predicted as the future for the U.S.
"What farmer, what mechanic, what laborer ever sees a tax gatherer of the United States?" Thomas Jefferson
Our currency was also tainted. The Union government also issued $430 million dollars in paper money, demanding it be legal tender to back all debts. Even worse, No gold backed the money, rendering the money as seemingly useless (inflation).
(Information from http://fee.org)