Final answer:
The Articles of Confederation lacked the power to collect taxes, which led to underfunding of the national government and hindered its ability to pay debts and conduct foreign affairs.
Step-by-step explanation:
The main reason why the Articles of Confederation lacked the power to collect taxes was to avoid the perception of 'taxation without representation.' The Articles allowed only state governments to levy taxes, which led to a lack of funding for the national government. Instead of directly collecting taxes, the national government had to rely on requesting money from the states, which often neglected this duty.
Without a reliable source of funds, the national government couldn't pay its debts from the Revolution or effectively conduct foreign affairs. This inability to compensate loyalists for their property losses and protect American ships from pirates caused foreign governments to be hesitant to loan money to the nation. The lack of taxation power hindered the effectiveness of the national government and became one of the major weaknesses of the Articles of Confederation.
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