What was a major effect of slavery on the economy of the Southern states?

The major effect of slavery on the economy of the Southern states was a reliance on agricultural production. Southern economies heavily depended on agriculture, particularly the cultivation of cash crops such as cotton, tobacco, and sugar. The use of enslaved labor allowed plantation owners to maximize their production outputs with minimal labor costs. This agricultural focus not only shaped the economy but also influenced the social structure and culture of the South, creating a vast economic disparity between the agrarian South and the more industrialized North.

In contrast, the introduction of industrial factories was more characteristic of the Northern states, which were moving towards industrialization. Development of urban areas also correlated more with the Northern economy, where factories and urban centers thrived due to industrial growth. Increased trade with Europe was certainly a factor for the Southern economy, particularly due to cotton exports, but it primarily stemmed from the reliance on agricultural production rather than being a direct consequence of slavery itself.