Between 1781 and 1789, the Articles of Confederation provided a basis for shaping the United States in to the exceptional nation it is today but, it failed to provide the nation with various aspects of government, such as foreign relations and economic conditions, that were essential to the success of the United States in its early years of infancy. The Articles of Confederation provided effective management of expansion for the United States. It also gave Congress ample control over guidance of the country. However, The Articles were insufficient in several important matters. Without an executive branch the country lacked a clear, decisive leader. Also, the requirement of nine states to agree on important issues (i.e. war, etc.) resulted in a slow legislative process. The Congress had no power to lay and collect taxes, nor did it possess the power to enforce its laws, making it virtually dependent on the states. .
Although the government gained some substantial powers, the crucial powers to tax and regulate commerce remained with the individual states. Under the Articles of Confederation, Congress had no power to tax the states, instead it depended on donations by the states. The states desired moderate government involvement and thus, were repulsed by the idea of federal taxation. Lacking in adequate funding, inflation soon overwhelmed the nation, and made "Continentals" in circulation worthless. Compounded with restrictions on trade to Great Britain and down the Mississippi River, the states became mired in a heavy depression. The Nation was under the verge of collapse and near-anarchy and the five year period after 1783 was the most critical time in American History. Furthermore, the Articles allowed for personal rights abuses such as unsubstantiated foreclosures on farms and ill-advised loans to certain "small groups", the antithesis of republicanism. Lastly, no judicial system was provided for to enforce laws and therefore allowed for insurrections such as Shay's Rebellion.