What were the economic failures of the Articles of Confederation?

The Articles did not refer to the provision for a national tax, as central government power was kept quite limited. Congress was not given the power to tax and could only request money from the states which meant that it and the army were often short of money. In order to attempt to overcome this, Congress printed more money, which in turn led to high inflation and loss of creditor confidence. Moreover, Congress had also been denied the power to regulate international and inter-state trade and as a result each state retained control over its own trade policies. This led to high inter-state trade tariffs that damaged the economy of the newly independent USA. These issues created serious problems for the new Confederacy and this was made worse because of the economic legacy of the War of Independence. Not only did war damage affect the economy, but also the loss of preferential trade with Britain following the end of the war closed off the Thirteen States' main export market.

Answered by Philip F. History tutor

5913 Views

See similar History A Level tutors

Related History A Level answers

All answers ▸

How far do you agree that the limited appeal of Mazzini’s ideas was the main reason for the slow progress of national unity in Italy in the years 1830-49?


How can I improve my ability to write a good quality essay in the short time frame of my exam?


Why did the Romanov dynasty collapse in 1917?


In the years 1961 to 1968 the campaigns to advance the civil rights of African Americans made only limited progress in the face of bitter opposition. [25 marks]


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences