The economies of the Northern and Southern states in the 19th century differed primarily in their reliance on agriculture versus industry. The South's economy was largely agrarian, focused on cash crops like cotton, which depended heavily on slave labor. In contrast, the North developed a more industrialized economy, with factories, trade, and infrastructure like railroads, supported by a diverse workforce.
Despite these differences, both regions engaged in trade and interdependence; for instance, the South supplied raw materials to the North, while the North provided manufactured goods. Factors contributing to their economic divergence included geography, climate, access to resources, and differing social structures, with the South emphasizing plantation systems and slavery, while the North embraced industrial capitalism and a growing urban workforce.