Congress Case

The inability of being able to levy taxes posed many economic problems. Congress had to ask individual states for money, instead of having the power to control the economy themselves. Many states ceded their western lands to congress, to benefit the whole nation, since the central government could sell the lands, obtain revenue, and pay of war debts. The Northwest Land Ordinance was also used here to create townships, and to attract people to buy land. Although this Ordinance would help collect revenue for the central government, a distinct flaw is expressed within the Articles of Confederation in that heavy reliance were put upon states in supporting the nation. A chart with the year, estimated market value on US imports to Great Britain, and the the estimated US population clearly shows economic problems. In the years of 1770-1775, the population consistently grew and the market value remained consistent, as well as growing in 1775. These were also the years that America was under British Imperial rule. Between 1775 and 1784 the Articles of Confederation caused the market value of US exports to dip from roughly $6,500 to $4,400, and remain stagnant at that number through 1792. This shows the lack of effectiveness America had in producing a lucrative and very stable economy under the Articles of Confederation, as the population continued to grow. Other forms of revenue were necessary to support the American economy such as taxes, but since congress didn’t have the power to levy taxes, they couldn’t manage the national economy efficiently. In 1782 when Congress attempted to levy taxes on imported goods with Rhode Island, they responded saying how it would be a violation of their rights, liberties, and constitution, by rejecting the offer. They felt that congress would be abusing their powers and it would be repugnant, as an act of tyranny since it wasn’t in the Articles. Although levying taxes is imperative to the stability of a national economy, congress couldn’t do anything since such an action wasn’t within their power. Again, the ineffectiveness of the Articles of Confederation caused a poor national economy, due to their inability to give congress the power to raise taxes.

Establishing a strong national security system was also a must for the United States of America. Since they had just finished fighting a Revolutionary War and broke free of control from Great Britain, they needed an army to defend their land and to protect the citizens from any potential threats. However, due to the lack of power to collect revenue effectively, congress didn’t have any money to fund an army. This notion is displayed when Joseph Jones of Virginia sends a letter to George Washington concerning the discontent in the army. Many soldiers hadn’t received their bonus and back pays and were very upset about that. Congress failed to support a strong national army due to their inability to raise enough revenue to fund their army. The inability