The Northern and Southern economies were very different before the Civil War. Money was equivalent to power in both regions. For the North the economy was based on industry as they were more modern and self-aware. They realized that industrialization was progress and could help free the country from slave labor, because it was wrong. The people of the North had a class system, but citizens could move within the system, provided they earned the money that would allow them to move up in class. The class system was not as rigid as in the South. In comparison, the South wanted to maintain its own economic policy. In this way, the practice of slavery kept the social order firmly in place. Economic factors, social issues, and a growing animosity between the two regions contributed to the civil war. The population of the North was made up of far-sighted individuals. They realized that if they wanted to prosper they needed to move from agriculture to industry and that using free labor to achieve prosperity would mean taking a step backwards. This ushered in a small and early industrial revolution. Factories and establishments producing finished goods sprang up throughout the northern United States along major waterways. These factories produced fabrics, iron, machinery, weapons. Raw materials such as cotton were purchased from the South and then resold in the form of clothing. Ironworkers made iron railroad ties for growing railroads across the country. More machinery was being built than ever before. These machines were able to multiply the work that could be done. These industries attracted people from rural areas because they paid for the work. As more and more people arrived, they settled around factori...... middle of paper .......com the largest and most comprehensive history site on the web. Retrieved November 12, 2010, from http://www.historycentral.com/CivilWar/AMERICA/Economics.htmlKelly, M. (n.d.). Overview of the American Civil War. American History from About. Retrieved November 14, 2010, from http://americanhistory.about.com/od/civilwarmenu/a/civiloverview.htmLondon, B. (n.d.). A changing economy. Georgia and the American experience. Retrieved November 15, 2010, from www.mystatehistory.com/georgia/ga_05/ch_6_3.pdfLondon, B. (n.d.). Henry Grady: The South's Greatest Salesman. Georgia and the American experience. Retrieved November 16, 2010, from www.mystatehistory.com/georgia/ga_05/ch_9_4.pdfTariff - Definition and more from the free Merriam-Webster dictionary. (n.d.). Merriam-Webster Online. Retrieved November 14, 2010, from http://www.merriam-webster.com/dictionary/tariff