Prior to the US Civil War, the South already was at adisadvantage regarding its economic base as compared to theeconomic base of the more powerful Union industrial andagricultural elements. With that said, it was during the war thatseveral key elements caused problems for the Confederacy. One wasits production of too much cotton instead of food products thatcould be used by the Southern armies. Also, the decline in itsrailway system combined with the Union blockades were also factorsto be considered. The other sometimes overlooked problem was thehigh inflation rates in the Confederate dollar.