Southern Economy
After the war the southern economy was left in ruins. It was estimated that over $100 million in damage had been done to the infrastructure of the southern states. The government had to invest in new roads, bridges, and railroads, but in order to pay for that southern governments raised taxes. These tax hikes caused the south's economic recovery to slow because the population of the south could not afford additional expenses.
After the abolition of slavery, freed African Americans sought out paid employment. Many who had experience working on plantations applied for positions with plantation owners. Certain employment arrangements involved labor contracts that would provide an African American with food, housing, and wages, in exchange for field labor. This benefited neither party involved. Plantation owners had trouble making a profit whilst paying employees, and African Americans complained that wages were still too low. A more profitable system was that of sharecropping. It allowed landowners to lend out portions of their land to freed African Americans or poor whites. The workers would then grow their own crop and would give the land owner a portion of the crop while keeping the rest. This provided more opportunities for African Americans to advance economically.
After the abolition of slavery, freed African Americans sought out paid employment. Many who had experience working on plantations applied for positions with plantation owners. Certain employment arrangements involved labor contracts that would provide an African American with food, housing, and wages, in exchange for field labor. This benefited neither party involved. Plantation owners had trouble making a profit whilst paying employees, and African Americans complained that wages were still too low. A more profitable system was that of sharecropping. It allowed landowners to lend out portions of their land to freed African Americans or poor whites. The workers would then grow their own crop and would give the land owner a portion of the crop while keeping the rest. This provided more opportunities for African Americans to advance economically.