Review 4

Prior to the mid-20th century, most of the South's population, and certainly its leadership, appeared to react to events as though the South was a separate country, reluctantly required to continue dealing with a northern neighbor. Since the later 1930s, however, and especially since the later 1940s, trends and pressures external to the South began to infiltrate the region and break down its isolation

The pull to the cities was stimulated by industrial growth and a diversification that promised to match that of southern agriculture and to produce a varied industrial mix. The proportion of the nonagricultural labor force in manufacturing jobs increased greatly, and in virtually every part of the region. The traditional industries - such as steel, tobacco products, and textiles - remained regionally important for a period but less dominant as other kinds of manufacturing activity appeared. Synthetic textiles and apparel industries, the former in the Carolinas and the latter primarily in northern Georgia, widened activities even within this broad industrial category. Chemical industries expanded rapidly along the Gulf Coast. Furniture production in the central Carolina Piedmont increased, and other wood-processing plants became more prominent throughout the eastern and Gulf coastal plains. Shipbuilding was continued at Norfolk, Virginia, and begun at several sites on the Gulf Coast; aircraft production at Marietta, Georgia, drew skilled labor and higher wages to the Atlanta area.
Most significantly, as the average southern consumer earned higher wages, the regional market increased enough to draw many consumer goods manufacturers into the South. This increased the demand for nonagricultural labor, spreading the income further and strengthening the local market.
The South's rapid industrial growth is a consequence of a growing regional market, gradually demanding and able to pay for more goods and services. But the question remains: Why did the market expand? One observer has proposed that the federal government's Agricultural Adjustment Acts (1935 and later) provided the main stimulus to the market growth.
Before the acts took effect, the prices that farm products could demand were set to a great extent by supply and demand in the international marketplace. To the South, this meant that prices for southern cotton, for example, fluctuated partly according to the production success or failure in other cotton-growing areas of the world. More important, farm labor in the cotton South was in competition with cotton producers in what was still largely a colonialized world economy. When agricultural wages and prices were adjusted upward under the Agricultural Adjustment Acts to reflect national industrial wage differentials, the sharply improved market in the South for manufactured goods initiated the upward development spiral still affecting the region.