What was one major consequence of the Civil War on the Southern economy?

The Civil War had profound effects on the Southern economy, one of which was the experience of high inflation rates and currency devaluation. During the war, the Confederacy printed large amounts of paper money to finance their military efforts, leading to runaway inflation as the value of this currency dropped significantly. As the South's economy was largely agrarian and heavily dependent on slave labor, the devastation brought about by the war—such as the destruction of infrastructure, loss of labor force, and disruption of trade—further exacerbated economic difficulties.

The result was that Southern currency experienced severe devaluation, undermining the purchasing power of individuals and businesses. By the end of the war, many Southern citizens were left financially crippled, lacking stable investments or reliable currency, paving the way for long-term economic challenges during the Reconstruction era. This context illustrates how deeply intertwined the financial struggles were with the outcomes of the Civil War, contributing to a significantly altered economic landscape in the South.