Economic and Social Impacts · US History

A major economic shift during the war was the movement of the U.S. toward a 'Contractor State,' which meant:

  1. The government hired private companies to provide almost all war materials
  2. The military effectively took over all private manufacturing in the entire North
  3. All Northern workers were forced to sign new ten-year labor contracts
  4. The government stopped paying for services and relied entirely on public donations
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Correct answer: The government hired private companies to provide almost all war materials

The Union government relied on massive contracts with private firms for everything from boots to ironclad ships. This created a close relationship between business and government that would define the Gilded Age.

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