After the constitution The new United States economy was…
Group of answer choices strong.
in a depression.
growing.
based on a sound monetary supply.
The correct answer and explanation is:
The correct answer is in a depression.
After the ratification of the U.S. Constitution in 1787, the new nation’s economy was largely in a state of depression. This economic downturn was a direct result of the chaos caused by the Revolutionary War, which had disrupted trade, drained financial resources, and left the U.S. government in significant debt. The war had also caused the collapse of many state governments, and the Articles of Confederation, which had been in place prior to the Constitution, had proven ineffective in regulating commerce and economic stability.
At the time, the country did not have a national currency or a uniform system of taxation. This made it difficult for the government to pay off its war debts or fund essential services. States issued their own currencies, and there was a lack of centralized control over economic matters, leading to inflation and the devaluation of money. Furthermore, the country’s economy was largely agrarian, and the lack of a strong industrial base limited the nation’s economic growth.
Additionally, the U.S. faced difficulties in international trade. The country was not yet on firm economic footing to negotiate favorable trade agreements with foreign powers. The end of the war had also removed the protection that British trade policies had once offered.
During this period of economic instability, the government under the Constitution began to take steps to strengthen the economy, such as creating a national bank, regulating interstate commerce, and establishing a more cohesive economic policy. However, the full recovery from the economic depression of the post-Revolutionary War period would take time, and it wasn’t until the administration of Alexander Hamilton that significant improvements were made.