Economic Effects Of The American Revolution

The American Revolution had significant economic effects on the newly formed America. It led to changes in the farming industry, foreign trade, taxes, and what congress now controlled. While the American Revolution initially had negative effects on America, it ultimately paved the way for the establishment of a new government and economic system that allowed for the growth and expansion of the American economy.

Many different things changed in America during the American Revolution and created the country we see today. What were the economic burdens for New America after the war? From the Huntington Library Quarterly Vol. 20, No. 4, Early American History Number, the author goes over many different topics about the war and expresses different

Some of these changes can be found in the Articles of Confederation. The American Revolution gave more freedom to America concerning how they regulate their economy. A big change stated is that “The united states in congress assembled shall also have the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority, or by that of the respective states regulating the trade and managing all affairs with the Indians”(Articles of Confederation). This shows that Britain no longer had control over what the colonies were receiving and what they were exporting and trading. Another economic change had to deal with taxes. As stated in the Articles of Confederation, “The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several states within the time agreed upon by the united states in congress assembled”(Articles of Confederation). Taxes are a major part of any economy, and now those taxes will be dealt with by legislators of the colonies and give power to states as well. This is important because it is written to show what the colonies have power over now. They are able to regulate how they want to trade and who they want to trade with. The states also now have the power to regulate taxes. These changes give immense freedom to the colonies from Britain and help to grow their

Evidence of this can be found in an article from The Collector to tell us just what changes occurred. In this article, the main point is clear the American Revolution gave the government more economic power. Many changes in the way the economy was run changed. For example, the government got the power to borrow money. The American government was also now able to regulate all foreign trade. Finally, the government was allowed to impose its own taxes. All these changes now shifted the power completely to New America’s government. One of the biggest pieces of the economy is taxes, and now the government had the power to regulate this. This proves that the government had more power because they weren’t relying on how Britain wanted the taxes to be. Instead, we got to choose. This is a necessity to foreign trade and now the government had the power to trade around the world and create money and allies for the young country. Borrowing money also gave the government lots of power. This change allowed the government to take money for whatever it wanted and could take the money from any part of the economy giving them more power over anyone. With the separation from Britain, New America now had its own government and didn’t have to be regulated by Britain. This change gave the government more economic power. This is important because