Topic > The American Revolution: The Impact of the American…

The American Revolution caused the economy to suffer from inflation and large amounts of debt, as the Continental Congress was forced to print money to pay for the war. The United States faced such a large foreign debt that Spain closed the Mississippi River in 1784 and many North African states began to pirate Yankee merchant ships. To manage this debt, Hamilton introduced the Funding Act of 1790, which proposed that the U.S. government assume the debts of all states and attempt to repay them at face value. The major economic difference caused by the American Revolution was the increase in available land and trade opportunities. The Treaty of Paris of 1783 granted the United States more federally controlled land. Under the Land Ordinances of 1785 and the Northwest Ordinance of 1787, the federal government divided the land into 36 sections to be sold so that other settlers' territories could eventually become states after reaching 60,000 inhabitants. The last minor impact of the American Revolution was trade. Free from British rule, Americans were no longer subservient to mercantilist ideas aimed at limiting and controlling trade. As a result, many Yankee ships sailed far away to make trade deals with foreign countries, when previously they could only trade with Great Britain. Despite the slightly more guaranteed economic enterprise