The 1780’s were a tough time for the America’s. America had recently declared itself independent from the British and were ending the Revolutionary War in the early 1780’s. The Articles of Confederation was drafted and put into effect in 1781. The Articles of Confederation was created due to the war going on because they needed unity between all the states in order to fend off the foreign forces. Upon the creation of the Articles of Confederation, there were many upsides to it but there were struggles with this type of weak government that led to its failure and the creation of a new document that we are all familiar with today, the Constitution. The federal governments under the Articles of Confederation and the Constitution have drastic measures on how they controlled the economy in the Americas.
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Once being British before declaring independence from them, a major source of trade was still going to and from England, but also there was also a lot of trade going on with the remaining British sugar colonies in the Caribbean. Unfortunately for the Americas, these two main commerce sources were pretty much gone after the war. Not only was the trade bad for the America’s with the British, but the American made products would not sell as cheap as the British made products, leading to money leaving the American country. The money that was continuously leaving the country did not help them with the very high level of debt that both the federal and state governments had acquired because of the war. Paper money was flooding the Americas and inflation was soaring, the support for the federal government was dwindling. Congress needed a way to help bring the economy back and move the country in the right direction to
Once being British before declaring independence from them, a major source of trade was still going to and from England, but also there was also a lot of trade going on with the remaining British sugar colonies in the Caribbean. Unfortunately for the Americas, these two main commerce sources were pretty much gone after the war. Not only was the trade bad for the America’s with the British, but the American made products would not sell as cheap as the British made products, leading to money leaving the American country. The money that was continuously leaving the country did not help them with the very high level of debt that both the federal and state governments had acquired because of the war. Paper money was flooding the Americas and inflation was soaring, the support for the federal government was dwindling. Congress needed a way to help bring the economy back and move the country in the right direction to