Without financial support, there was also no improvement in the public goods. Concerning the public goods, even modern nations still have a problem with this aspect, and that is the free-rider crisis. Similarly, the states did not want to spend their money on the national treasury but still wanted to have national government funds. As a result, it was even more impossible for any single individual state to share its own revenue with Congress’s.
To solve the problem, in 1787, the Framers finally created the Constitution that gave Congress the permission to levy taxes directly on people. This taxation authority created a stable source of revenue for the legislative branch to allocate and support federal programs. The money gained could be used …show more content…
States’ delegates acted according to their own plans and interests, and the inefficient national government could only watch that happen. Without the power of imposing tariffs, the Congress lost several considerable benefits from the trade admission of Great Britain into West Indies, which was very profitable contribution into the needy Treasury.
As Madison realized this issue, the Constitution created in 1787 allowed Congress to put imposts and duties when trading with foreign nations and Indian tribes. In addition to federal taxes, tariffs were an adequate source of revenue as well. At the end of the eighteenth century, the industrial revolution had not occurred yet in the United States, so the agriculture and commerce were still the essences of the economy. Manufactured goods could only be from the other side of the Atlantic Ocean. As a result, trading with Great Britain and other European nations was inevitable, and this source would never …show more content…
The Shays’ Rebellion in Massachusetts was a good example for this. There were also groups of 12,000 to 15,000 men constituted in other states such as Rhode Island, Connecticut, and New Hampshire. When the crisis happened, there were not enough federal soldiers to prevent the problems. Fortunately, the private armies provided by private wealthy sponsors were still able to suppress these actions. This was not the only example indicating how weak and uncertain the power of the Confederation was. For not only domestic but also foreign affairs, the need of the army had never been greater. Indians, the enemies of Americans, were attacking persistently because of American encroachment of land in the frontiers. Most of the Americans did not want to get into a war with any foreign nations; the costs of American Revolutionary War were enough. Otherwise, there was no guarantee that the nation would be safe if an actual problem