
The US Constitution, ratified in 1788, was designed to address the weaknesses of the Articles of Confederation and establish a stronger federal government. The Articles had created a confederal government with limited authority, and the new Constitution aimed to address issues of representation, individual rights, and power distribution. It established a bicameral Congress with two representative houses, the Senate and the House of Representatives, balancing the needs of large and small states. The Constitution also included a Bill of Rights to protect individual liberties, shared power between federal and state governments, and the Three-Fifths Compromise for representation, addressing previous governmental shortcomings and balancing competing interests.
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What You'll Learn

The central government couldn't collect taxes to fund its operations
America's first constitution, the Articles of Confederation, gave the Confederation Congress the authority to request funds from the states, but it lacked enforcement powers. The central government couldn't collect taxes to fund its operations, as it relied on the voluntary efforts of the states to send tax money. This led to a lack of funds, hindering the government's ability to maintain a strong military or support its currency.
The lack of a common currency further exacerbated the issue, as individual states had their own money systems, making trade within the Confederation era challenging. The central government struggled to regulate commerce and print money, which were essential for economic stability and growth.
The Articles of Confederation provided for a highly limited central government with little power to enforce its authority. This weakness allowed states to act independently, conducting their own foreign policies and making laws that penalized out-of-state businesses and citizens. The central government's inability to collect taxes and its limited power threatened to tear the young country apart, as disputes over territory, war pensions, and trade intensified.
The delegates at the Constitutional Convention of 1787 recognized the need for a stronger central government. They crafted a new constitution, bypassing the state legislatures and creating a powerful central government with enforcement powers. This shift addressed the issue of tax collection, granting the central government the authority to regulate commerce, collect taxes, and maintain a unified currency.
The new constitution's approach to centralizing power and taxation aimed to resolve the issues faced under the Articles of Confederation. It provided the necessary tools for the central government to effectively manage its finances, conduct trade, and support its currency, ensuring the country's stability and economic growth.
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States could conduct their own foreign policies
The Articles of Confederation, America's first constitution, gave individual states the power to conduct their own foreign policies. This was problematic because it was technically the role of the central government to conduct foreign policy, but the Confederation government lacked the power and ability to enforce this. The central government was already extremely limited, and without domestic and international powers, it was unable to prevent states from conducting their own foreign policies.
The Articles of Confederation also gave the Confederation Congress the power to make rules and request funds from the states, but it had no enforcement powers, and it couldn't regulate commerce or print money. This meant that the central government couldn't collect taxes to fund its operations, and it relied on the voluntary efforts of the states to send tax money.
The lack of a common currency made trade between the states and other countries extremely difficult. Each state had its own money system, which created barriers to trade and commerce. The central government lacked the funds to maintain an effective military or back its own currency.
The new Constitution created a powerful central government with enforcement powers. It gave the laws passed by Congress superiority over state laws, ensuring that states could no longer ignore them. This shift in power dynamics addressed the issue of states conducting their own foreign policies by establishing the central government as the sole entity responsible for foreign affairs and diplomacy.
The founders of the new Constitution were wary of centralized power and loyal to their states, so they crafted compromises and bypassed state legislatures when establishing the new government. They recognized the limitations of the Articles of Confederation and sought to create a more durable and effective system of government.
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States had their own money systems
America's first constitution, the Articles of Confederation, gave the Confederation Congress the power to make rules and request funds from the states, but it had no enforcement powers and couldn't regulate commerce or print money. The states had their own money systems, which made trade between states and other countries extremely difficult.
Before the implementation of the new Constitution, the central government and the states each had separate money systems, hindering interstate and international trade. This was a significant issue that the new Constitution aimed to address.
The lack of a unified currency system in the Confederation era stemmed from the limited power of the central government, which relied on voluntary contributions from the states for funding. Without a common currency, the challenges of interstate and international trade were exacerbated.
The new Constitution addressed this issue by granting Congress exclusive power over coinage and currency regulation. Article I, Section 10, Clause 1 of the Constitution explicitly prohibits states from coining money. This centralized control over currency production and circulation helped standardize the monetary system across the nation, facilitating smoother trade and economic transactions.
The establishment of a national currency system was a significant step toward creating a unified and efficient economic framework for the country. It eliminated the barriers posed by varying state currencies and enabled the country to present a unified front in international trade. This aspect of the new Constitution contributed to the country's economic stability and growth by streamlining interstate and international commerce.
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The Confederation government couldn't settle Revolutionary War-era debts
The Articles of Confederation, America's first constitution, gave the Confederation Congress the authority to make rules and request funds from the states. However, it lacked enforcement powers, the ability to regulate commerce, and the ability to print money. As a result, the Confederation government was unable to settle debts incurred during the Revolutionary War.
The central government and the states owed substantial debts to European nations and investors. The Confederation government lacked the authority to levy taxes, which was necessary to secure revenue to repay these debts. This inability to collect taxes hindered the government's ability to fund its operations, maintain a strong military, and support its currency.
During the Revolutionary War, the Continental Congress obtained loans from France, as well as from Dutch bankers. The new U.S. government struggled to repay these debts, and by 1785, it had stopped paying interest to France and defaulted on subsequent instalments. The United States also owed money to the Spanish government and private Dutch investors, but prioritised repaying the Dutch due to the potential for future loans.
The Confederation government's inability to settle these Revolutionary War-era debts had significant economic implications. Without the ability to tax or facilitate viable trade with other states and countries, the United States faced economic turmoil by 1787. This financial instability, coupled with concerns about trade and the need for a uniform economic system, prompted delegates from five states to meet in Annapolis, Maryland, in September 1786, to discuss amendments to the Articles of Confederation.
It wasn't until 1795 that the United States finally settled its debts with the French government, thanks to the intervention of American banker James Swan. Despite resolving its debts with foreign governments, the United States still owed money to private investors in Europe and within its own borders.
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States could ignore laws passed by Congress
America's first constitution, the Articles of Confederation, was submitted to the 13 states for consideration in 1777. However, it soon became apparent that this constitution had limitations and failed to address several issues. One of the critical problems it faced was the states' non-compliance with laws passed by Congress. The Articles of Confederation gave the Confederation Congress the authority to create rules and request funds from the states, but it lacked enforcement powers. As a result, states could, and often did, disregard laws enacted by Congress.
The lack of compliance from the states created a sense of concern among prominent figures such as James Madison, Alexander Hamilton, and George Washington, who feared that the young nation was on the verge of collapse. They recognized that the inability of the central government to enforce its laws threatened the country's unity and stability. This issue was a significant driving force behind the call for a new constitution that would address the shortcomings of the Articles of Confederation.
The Constitutional Convention of 1787 marked the end of the era of the Articles of Confederation and the beginning of a new constitutional framework. The delegates at the convention, representing diverse interests and views, crafted a powerful central government with enforcement powers. They understood the importance of establishing a strong federal government that could effectively enforce its laws and maintain the country's integrity.
The new Constitution, ratified by 9 of the 13 states, explicitly stated that laws passed by Congress take precedence over state laws. This provision ensured that states could no longer ignore federal laws without consequences. By establishing the supremacy of Congress in law-making, the new Constitution resolved the issue of state non-compliance and created a more unified and cohesive nation.
The impact of this constitutional change was significant. It prevented states from acting independently and unilaterally disregarding federal laws. The central government now had the authority to enforce its laws and ensure that all states adhered to the same set of rules. This resolution addressed the cause of the problem by empowering the central government and providing a framework for effective governance. As a result, the United States moved forward as a more united and stable country, with the Constitution serving as a lasting foundation for the nation's governance.
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Frequently asked questions
The new US Constitution, ratified in 1788, aimed to solve several issues in the previous system, the Articles of Confederation. These issues included:
- Overly state-centric power distribution
- Inadequate representation, particularly for smaller states
- Lack of protection for individual rights and liberties
- Lack of a federal governance structure.
The new US Constitution implemented a federal system that shared power between the federal and state governments, addressing the issue of overly state-centric power distribution under the Articles of Confederation. It also established a bicameral Congress with two representative houses: the Senate and the House of Representatives. This structure, known as the Great Compromise, balanced the needs of both large and small states in terms of representation.
The new US Constitution included a Bill of Rights, added in 1791 as the first ten amendments. The Bill of Rights explicitly outlined and protected individual rights and liberties, such as freedom of speech and religion, against potential infringement by the powerful new federal government. This was a significant response to the concerns of Anti-Federalists, who feared that a strong national government might threaten individual liberties.

























