No, I didn't say the South was the first to build submarines, I said they were the first to sink a ship in combat with a submarine. It's about technological parity, which is a different from the industrial power to back it up.
These weren't two countries in conflict, it was the same country, with the same military traditions and technology divided against itself. Fewer factories does not mean technological inferiority.
The Spaniards arriving in the New World with horses, plate armor and firearms and going up against the Aztecs... that's a case of technological inferiority. It's ridiculous to apply that phrase to the U.S. Civil War (IMO).
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