The major downfall of the Articles of Confederation was simply weakness. The federal government, under the Articles, was too weak to enforce their laws and therefore had no power. The Continental Congress had borrowed money to fight the Revolutionary War and could not repay their debts.
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Following WWI in North America and most of Europe there was a recession that led to economic decline. The recession in the United States did not last long and was followed by nearly a decade of major economic growth that made the United States the most powerful economy in the world.