Answer: In the North, the economy was based on industry. They built factories and manufactured products to sell to other countries and to the southern states. They did not do a lot of farming because the soil was rocky and the colder climate made for a shorter growing season. In the South, the economy was based on agriculture. The soil was fertile and good for farming. They grew crops like cotton, rice, and tobacco on small farms and large plantations. The many large farms and plantations required thousands of workers. Because of this great need, the farmers began to depend on slave labor instead of trying to hire people to work in their fields.
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