The economic crisis under the Articles of Confederation was characterized by severe inflation, widespread debt, and a lack of effective central authority to regulate commerce or levy taxes. States issued their own currencies, leading to confusion and distrust in the financial system. Additionally, the federal government lacked the power to impose taxes, resulting in insufficient revenue to pay off war debts and fund essential services. This economic instability contributed to social unrest, exemplified by events like Shays' Rebellion.
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