THE ARTICLES OF CONFEDERATION SHOW THE NEED FOR DIRECT TAXATION? IT JUST AIN'T SO!

Scott Beaulier (), Joshua Hall and Ben VanMetre

Economic Affairs, 2009, vol. 29, issue 3, 93-94

Abstract: Historians and economists often refer to the United States experience under the Articles of Confederation as evidence against decentralised 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 existed under the Articles of Confederation, is an important check on Leviathan and has implications for United Nations fund‐raising efforts and development economics.

Date: 2009
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