Final answer:
Financial panics such as the Panic of 1857 and the Panic of 1819 exacerbated sectional tensions between the North and South in the U.S. The South's resilience during downturns and opposition to Northern economic policies, such as protective tariffs, intensified the conflict and contributed to political contention.
Step-by-step explanation:
Economic growth and financial panics, such as the Panic of 1857 and the Panic of 1819, significantly contributed to sectional conflict and political contention in the United States. During the era of the market revolution, as commodity prices rose, there was also an increase in inflation and speculative investments. Banks issued notes beyond their reserves and made risky loans, leading to economic instability. The subsequent financial crises underscored the nation's interconnectedness with the European economy and highlighted deficiencies in the financial and transportation systems.
The panics exacerbated existing sectional tensions, particularly between the North and the South. After the Panic of 1857, which severely affected the Northern economy but largely spared the Southern plantation economy, the South boasted about its economic resiliency. This further frustrated Northerners, who also blamed the South's insistence on low tariffs for weakening their own economic position. In response, a coalition of Northern politicians advocated for protective tariffs and federal support for internal improvements, which the South viewed as promoting an anti-slavery agenda, intensifying the divide between the two regions.
This division escalated into a serious political rift, with the Southerners obstructing the Northern efforts to implement protective tariffs and other measures aimed at preventing future economic downturns. The Southerners perceived these moves as threatening to slavery, while Northerners saw Southern actions as part of a 'slave power conspiracy,' ultimately leading to increased sectionalism that contributed to the outbreak of the Civil War.