Problems in the New Nation Chapter 8 - Section 2

Define Tariffs - Taxes on imports or exports Interstate commerce - trade between two or more states Inflation - increased prices for goods and services combined with the reduced value of money

Definitions continued Debtors - people who owe money Creditors - people who lend money Depression - a period of low economic activity combined with a rise in unemployment

Lack of Respect Congress could not force the states to provide? Army This made it difficult to? Enforce terms of international treaties Britain was slow to? leave their forts after the Revolutionary war Spain? closed the lower Mississippi River to U.S. ships This hurt? trade

Trouble with Trade British economic policy Closed? - many of its ports to American ships Forced American merchants? to pay high duties (taxes) on U.S. exports

Effects on American economy American exports? Dropped British imports? Flowed freely into the U.S British Merchants? Could sell products at lower prices than locally made goods

Responses Confederation Congress COULD NOT? pass tariffs - did not have the power States could not help because? they wanted to trade with England so they did not pass tariffs Britain was the most important trade partner of the U.S

Economic Problems at Home Confederation Congress had no power to? regulate interstate commerce-trade was difficult across state lines Inflation Some states printed? their own paper money This led to? inflation

Inflation Continued Inflation helped? increase the prices for goods and services Because? the value of money was reduced What group was upset over inflation? creditors (people who are owed money) they were being paid back with worthless money

Debt in Massachusetts Some farmers had to sell themselves as? Massachusetts tried to pay debt by? collecting taxes This especially hurt? farmers Punishments for not paying taxes 1. forced them to sell their property to pay taxes 2. Served time in debtors prisons Some farmers had to sell themselves as? indentured servants

Shay’s Rebellion Massachusetts’s farmer rebellion led by? Daniel Shays - farmer revolt against govt. Outcome? Revolt was ended and fourteen people were sentenced to death Revolt showed? the weakness of the confederation govt.

Push for Change 5 states sent delegated to discuss? changing the Articles of Confederation Delegates planned? A Constitutional Convention for May of 1787 and wanted all 13 colonies to send delegates

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