1. Problems in the New Nation
Chapter 8 - Section 2

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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

13. THE END