the confederation government of america. essential question: what were the achievements and problems...
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THE CONFEDERATION GOVERNMENT OF AMERICA
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ESSENTIAL QUESTION:
What were the achievements and problems with the Confederation government after the American Revolution?
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CONFEDERATION:
Definition: A group of states, more or less permanently united for common purposes.
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NEW BORDERS:
Beyond the frontier, The Confederation government still had to deal with foreign powers.
Great Britain:
-Had 7 military strongholds in and around present day Western New York and Michigan.
-Big fur traders, extremely nationalistic.
Spain:
-reclaimed Florida and the Gulf Coast around New Orleans.
-Cut off American trade in the lower Mississippi River. (1784)
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FOREIGN TRADE:
-Britain still exported cheap goods to the U.S.A.
-The new Congress was unable to pay off debts incurred from the war.
-this led to Americans buying the British goods because they were cheaper,
-Veterans were not paid the money they were owed.
-economic depression resulted from these actions.
**THESE ACTIVITIES UNDERMINE THE NEW GOVERNMENT’S POWER AND CONTROL.**
How could a government deal with
these issues?
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IMPOSE TARIFFS
Taxes placed on imported goods became the attempted solution.
-However, each state decided to tax or not tax imports, NOT The Confederation.
-Britain circumvented tariffs by only exporting to states without tariffs.
How do you think Britain reacted?
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ADAM SMITH, ENLIGHTENMENT, AND LAISSEZ FAIRE ECONOMICS…
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FOREIGN TRADE CONTINUED…
The Confederation decided to try and impose a 5% tax on all imports…
-12 states agreed…
-Rhode Island did not…
-therefore the measure failed.
*The Confederation required unanimous consent for approval, so the tariff was defeated.
So what could be done to fix this problem?
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FOREIGN TRADE CONTINUED…
Realization by many that a stronger central government may be needed to be truly “free.”
Seriously?! But what about states rights? What about
NOT being under the control of centralized
government?!!!!!!
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STATES RIGHTS VS. FEDERAL GOV: WHATS THE BEST WAY?
List as many pros for both states rights and federal rights:
STATES RIGHTS: FEDERAL GOV:
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THE ISSUE OF INFLATION:
Inflation is the economic term characterized by high prices due to excess currency in use.
the end result is less valuable money.
Prior to the war, there was a shortage of money which led to fur, tobacco, and even Indian wampum being used as currency.
this happened because paper money became useless.
Guess which state had severe inflation problems?
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RHODE ISLAND
PAGE 144…
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SHAYS REBELLION:
-Massachusetts was trying to pay of their state debt.
-high taxes ended up putting many middle income farmers and workers in jail between 1780-1786
-average farmer in Mass. Was paying 1/3 their income in taxes.
-many farmers had to foreclose on their property…
until the summer of 1786…
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SHAYS REBELLION CONTINUED…-Daniel Shays, veteran of the Revolution led a mob of farmers upon the courts in Massachusetts.
-The state sent in troops, put down the “little rebellion” and Shays fled to Vermont.
-The Mass. Legislature did make some concessions to the mob’sdemands.
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IMPACT OF SHAYS REBELLION:
-Sympathizers with Shay were disgruntled due to an unresponsive government to their problems.
-Wealthy Americans viewed the rebellion as an example of what too much freedom can lead to, and acknowledged that more power in centralized government may be necessary.
-farmers across the states worried that similar problems would develop in their land as well.
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NEXT STEPS…