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Articles Of Confederation Economic Flaws

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Economic issues affected the founding of the United States and revealed basic problems that led to the failure of the Articles of Confederation, were chief complaints in the Declaration of Independence, and affected the structure of the new government in the Constitution. A weak central government led to the failure of the Articles of Confederation. Under the Articles of Confederation, Congress had little money and had to request money from the states because it had no power to tax. States printed their own money and often refused to financially support the national government. Out of desperation, Congress sold western lands to prospectors, issued securities that sold for less than their value, and printed their own money that was virtually …show more content…

The economy was in disarray, the states had imposed tariffs on products from other states, paper money was virtually worthless in some states, and Congress was having trouble raising money due to a recession (Edwards, page 44). The Founders believed that the American economy was in shambles and sought to strength economic powers of the new government, thus affecting the structure of government. The Founders made sure that the Constitution clearly spelled out the economic powers of Congress. Congress was to be the chief economic policymaker, and could obtain revenues by taxing and borrowing. Congress was to encourage economic enterprise and investment, and had the power to build the nation’s infrastructure by constructing post offices and roads and establishing standard weights and measures. Congress was also charged with punishing counterfeiters and pirates, ensuring patents and copyrights, and legislating rules for bankruptcy. Congress’s new ability to regulate interstate and foreign commerce was a key congressional power. Economic concerns affected the structure of government and the Constitution granted Congress the power to create the conditions within which markets could flourish. These conditions prohibited practices in the states that they viewed as inhibiting economic development. The

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