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During the confederation period, what problems did the American economy face?

seikochung's profile pic

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During the confederation period, what problems did the American economy face?

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iwanttolearnsobad's profile pic

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poverty

 

What's more, under the Articles of Confederation, states were more or less in competition with each other to keep their revenue and resources within their own states.  The more disunited and competitive the states became, the less functional our economy was.

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The American economy at this time was very fragile, and in its infancy.  Barter economies still existed on the frontier, there was no system of national revenue, as the federal government had no authority to tax, our trade ships were subject to seizure at the hands of the British Royal Navy and the entire economy was under the weight and shadow of a $4 million debt owed to France, Spain and the Netherlands, and the individual states themselves also had debts they could not pay.

What's more, under the Articles of Confederation, states were more or less in competition with each other to keep their revenue and resources within their own states.  The more disunited and competitive the states became, the less functional our economy was.

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