USA HISTORY

Detailed explanation-1: -The Confederate States of America (1861–1865) started with an agrarian-based economy that relied heavily on slave-worked plantations for the production of cotton for export to Europe and to the northern US.

Detailed explanation-2: -The twin disadvantages of a smaller industrial economy and having so much of the war fought in the South hampered Confederate growth and development. Southern farmers (including cotton growers) were hampered in their ability to sell their goods overseas due to Union naval blockades.

Detailed explanation-3: -There was great wealth in the South, but it was primarily tied up in the slave economy. In 1860, the economic value of slaves in the United States exceeded the invested value of all of the nation’s railroads, factories, and banks combined.

Detailed explanation-4: -Answer and Explanation: The biggest economic disadvantage for the Confederacy was that it did not have the industries needed to produce items for the war or produce items that could be sold to support its economy.

Detailed explanation-5: -The two main reasons for the economic problems of the Confederacy were the printing of money and reliance on borrowing money in Europe. The Confederacy did not raise enough money in taxes to pay for their war-related expenses.