The congress of the confederation could not tax. The could request tax, but they had no authority. The government went into debt.
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The articles of confederation gave power to the states and left very little power for the federal government.
The Articles of Confederation and Perpetual Union was the first constitution of the United States of America. In September 1786, commissioners from five states met in the Annapolis Convention to discuss adjustments to the Articles of Confederation that would improve commerce. They invited state representatives to convene in Philadelphia to discuss improvements to the federal government. After debate, the Congress of the Confederation endorsed the plan to revise the Articles of Confederation on February 21, 1787. Twelve states, Rhode Island being the only exception, accepted this invitation and sent delegates to convene in May 1787. The resolution calling the Convention specified that its purpose was to propose amendments to the Articles, but through discussion and debate it became clear by mid-June that, rather than amend the existing Articles, the Convention decided to propose a rewritten Constitution. The Philadelphia Convention voted to keep the debates secret, so that the delegates could speak freely. They also decided to draft a new fundamental government design. Despite Article 13 of the Articles of Confederation stating that the union created under the Articles was "perpetual" and that any alteration must be "agreed to in a Congress of the United States, and be afterwards confirmed by the legislatures of every State," Article VII of the proposed constitution stipulated that only nine of the thirteen states would have to ratify for the new government to go into effect (for the participating states). Current knowledge of the drafting and construction of the United States Constitution comes primarily from the diaries left by James Madison, who kept a complete record of the proceedings at the Constitutional Convention.
One of the primary reasons the Constitutional Convention decided they needed a document to replace the Articles of Confederation was because the Articles did not grant the federal government sufficient power to address the nation's needs. Under the Articles, the federal government had no power to levy or collect taxes, or to regulate commerce between the states. This lack of power meant that the federal government was unable to raise funds to pay off debts, or to provide for a military, which left the country vulnerable to foreign attack. Additionally, the federal government had no power to regulate trade and commerce between the states, which caused economic chaos and hindered the growth of the nation.In order to address these issues, the delegates at the Constitutional Convention decided that a new document was needed to replace the Articles of Confederation. This document, the Constitution of the United States, granted the federal government the power to:\tLevy taxes\tCollect revenue\tRaise an army\tRegulate commerce between the statesThese powers allowed the federal government to address the nation's needs, and paved the way for the growth and development of the United States.
The reason the Declaration of Independence as well as the Articles of Confederation and the U.S. Constitution do not speak of a Democracy is due to the fact that the United States of America is not a Democracy. It is in fact a Republic. This is not explained well in school or in the media, but it is the fact.
The inadequacies of the Articles of Confederation had left the United States with a weak army. As a result, the European powers were able to take advantage. Spain closed the port at New Orleans, and Britain refused to remove its presence from the Ohio Valley.