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The Articles of Confederation were basically not effective for the purposes of establishing a new nation. However, they served as a starting point in the process of compromise that was necessary to formulate a viable government.
"Confederation" means a loose grouping or association, which is what the newly independent states wanted. They did not want to yield any more power than absolutely necessary to any central governmental body or person. Creating a confederation allowed the states to maintain many separate functions. The national government was given the authority to declare war, but the individual states had responsibility for contributing financial support to pay for the war. The national government was responsible for foreign policy but had no finances to enforce military actions against foreign powers taking advantage of the new nation. Congress had no authority to regulate business between the states, which led to conflicts and uprisings.
As a result of living under the Articles of Confederation, representatives of the states realized the need to find a way to create a stronger central government that would have the authority needed to control and unify the new nation.
The Articles of Confederation were really ineffective as it pertains to the new nation. The Articles of Confederation failed because they did not give Congress and the national government enough power. The new United States just fought a war to end what they considered tyrannical rule of a strong government that overpowered local government and the leaders of the U.S. feared a powerful central government. Because of this, they did not give the central government the power it needed to rule effectively. It did not give Congress the power to tax, so the government ended up printing money which caused inflation. It did not give Congress the power to draft troops, so the U.S. military was small leaving the U.S. weak. Congress did not have the power to control interstate commerce or stop states from printing their own money, causing economic chaos within the U.S. The Articles did not give Congress the power to place tariffs on foreign goods, hurting American businesses that could not compete with cheaper British goods. The U.S. government had no chief executive so there was no one to enforce the laws that were passed. The list can go on. With the rebellion led by Daniel Shays in Massachusetts, the leaders of the U.S. realized the Articles were not working which led to the Constitutional Convention where the Articles were abandoned and the new U.S. Constitution was written, which addressed many of the problems found with the Articles.
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