Why was it difficult or impossible for the government of the United States under the Articles, to raise money to pay its expenses? *

One of the biggest problems was that the national government had no power to impose taxes. To avoid any perception of “taxation without representation,” the Articles of Confederation allowed only state governments to levy taxes. To pay for its expenses, the national government had to request money from the states. The states, however, were often negligent in this duty, and so the national government was underfunded.

Without money, the US government could not pay debts owed from the Revolution or easily secure new funds. Foreign governments were reluctant to loan money to a nation that might never repay it. The fiscal problems of the central government meant that the currency it issued, called the Continental, was largely worthless.

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