Donate Today

The Articles of Confederation Shows the Need for Direct Taxation? It Just Ain’t So!

By

Originally published in Economic Affairs

Historians and economists often refer to the United States experience under the Articles of Confederation as evidence against decentralized government finance. While it is true that the US government had difficulty raising money from the states during this period, we argue that these facts are a benefit of the system, not a flaw.

Historians and economists often refer to the United States experience under the Articles of Confederation as evidence against decentralized government finance. While it is true that the US government had difficulty raising money from the states during this period, we argue that these facts are a benefit of the system, not a flaw. A ‘bottom-up’ system of finance, such as the one that existd under the Articles of Confederation, is an important check on Leviathan and has implications for United Nations fund-raising efforts and development economics.

Find article at Wiley Online Library.

To speak with a scholar or learn more on this topic, visit our contact page.