The Panic of 1857 was a international economic crash and financial panic. For the United States, the panic was due to over-expansion of the national economy while the world-wide economy was declining. This was the first world-wide economic crisis. It was caused by the interconnectedness of the economies between countries. The economies where so connected in the 1850s that when one started to fall the others would follow. The Panic caused the values of stocks and bonds held in American Banks to be lowered. However, while the majority of the world was in an economic crisis, the Southern United States had an increase in cotton sales. This made many people in the South believe that they were superior to others and that that they did not need help from the government.
How did the Panic of 1857 lead to the Civil War?
ReplyDeleteWas the United States extremely affected by the Panic of 1857? Just to clarify, are you saying that around this time people lost faith in American Banks due to what happened in the Panic of 1857?
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