Final answer:
The Articles of Confederation gave the state governments the power to tax, while the national government had to request funds from the states. Consequently, the national government was underfunded, and Congress lacked the financial power to deal with the national debt effectively and to conduct foreign affairs.
Step-by-step explanation:
The primary reason Congress was powerless to deal with the growing national debt under the Articles of Confederation was due to its limited power to tax. The Articles of Confederation were designed to ensure that the state governments held more power than the national government. In an attempt to avoid 'taxation without representation,' only state governments were given the authority to levy taxes. The national government, on the other hand, had to ask for money from the states to fund its expenses, creating an imbalance of financial power.
This inequity led to a serious financial crisis as states were regularly negligent in providing funds, leading to an underfunded national government. This inability to raise taxes and therefore, secure funds, left the U.S. unable to pay back debts from the American Revolution and restricted its ability to handle foreign affairs.
As a result, Congress lacked the financial power and authority to deal effectively with the national debt. This situation ultimately led to a push for a stronger federal government and the revision of the original Articles into the current U.S. Constitution.
Learn more about Articles of Confederation