The Cotton Gin impacted the American economy by allowing short-staple cotton to become the South's most important cash crop. The reason the cotton gin was so important to the south was because prior to it the south was only able to produce tobacco and long-staple cotton which was easier to grow and clean; however, after the invention of the cotton gin the South was able to grow and clean short-staple cotton much faster than before and thus able to turn this once unprofitable raw good into it's most import cash crop.
