Reason: Economic Problems

Question 1

What was the economic situation ?

Answer 1

• Economy was generally thriving and internal markets boosted by the considerable population growth and settlements
• ending of war meant trade was revived and the Peace of Paris removed British trade restrictions

Question 2

What happened to trade ?

Answer 2

As a result of increased competition from Britain and congress lack of ability implement a policy individual states resorted to tariffs on imported goods which threatened the prosperity of the USA

Question 3

What did the tariffs cause ?

Answer 3

• debt mounted to a contemporary £11 million by 1780s
• deep divisions about economic and financial policy
• Creditors feared a loss of earnings as debtors wanted to print money and create laws agaisnt foreclosure
• Farmers resented states attempts to levy tax

Question 4

How did economic factors contribute to pressure for a stronger govenrment ?

Answer 4

• To establish a common tax, ensure printing of paper money was controlled and to negotiate trade and create a national policy of trade
• underlined major considerations for those who wanted to establish a new constitution out of fear for unrest
• contributed to social unrest, like Shays rebellion, which threatened to reignite the pre war tensions between the rich and poor elements of colonial society