Why did the American economy fail after the American Revolution?

Answer 1

It failed because after America gained independence, they wanted to make sure that they didnt do things the way they were done in England. They feared centralized government because they didnt want one person to get into power and take over like the king did in England. So, they divided into states under the Articles of Confederation, each state was basically free to do whatever they wanted. But when it came to addressing the foreign powers in Europe they would have those Articles of Confederation to unite the different states somewhat. Each had it's own constitution and military and money, just everything. There was a type of Congress but this Congress had very limited power compared to that of the state. So when it came to trade in between states they had problems because each had their own money and there was no way for them to change the currency, at least not easily because the value was constantly changing. So they realized the economy, or whatever they called it then, was failiing and they went back and wrote the Constitution that we now have today.

Answer 2

Not surprising -- the economy had to resolve/overcome such things as;

1) high debts run up to finance the war

2) hyperinflation, the result of unrestricted printing of paper money to pay for the war (the currency issued was called a "Continental"... which was now nearly worthless, hence the expression "not worth a Continental")

3) major changes in trade now that the former colonies were not part of the British Empire:

a) major British markets were, for a time, closed to the U.S.

b) the U.S. now lacked the protection of the Royal Navy...and for some time did not have its own navy. This made them easy prey to privateers, and esp. to the Barbary pirates -- a problem not completely resolved until the Second Barbary War of 1815 when the navy built up during the war of 1812 flexed its muscle

c) the Articles of Confederation may not have contributed as much to the economic hardship as is commonly claimed, but the arrangement DID make it difficult to establish a treaty with England (including on maritime matters), since the federal government could not bind all the states to keep it

http://www.mises.org/story/1296
http://www.ex.ac.uk/~RDavies/arian/northamerica.html
http://www.kwaves.com/fiat.htm

Answer 3

I concur with Bruhaha, but would like to add, that the Continent was dependent upon trade with Britain, British ships transported raw materials from the continent to Britain were the were made into goods that were sold throughout Europe and the British Empire. Continental merchants, shipping companies, and plantation owners almost all had debts to British banks, and relied on British traders for the shipping, sale, manufacturing, and marketing of these goods, raw materials. Without this connection the Continent was without a way to market their goods, and finance the fledgling government.
An interesting review and comparisons of the personnel accounts of Jefferson and Washington reveal this, plus also set the stage they would later divide the nation during the American civil war. Washington recognized his dependency an debts to British trading houses and bank and managed to successful break them, Jefferson did not, and died indebt.

Answer 4

because at that time america's economy was based on trade with england after the war that trade stopped. it didnt rebound until trade with spain and france was allowed

Answer 5

There was a revolution? It wasn't televised, and why wasn't I invited?