Final answer:
The Continental Congress struggled to fund the Revolutionary War due to their avoidance of taxing citizens, excessive printing of money, and reliance on state contributions, leading to rampant inflation and financial disarray. Organizational issues within the Continental Army further complicated the war effort. The need to regulate commerce and address fiscal challenges led to the Constitutional Convention and the formation of the U.S. Constitution.
Step-by-step explanation:
Challenges Faced by the Continental Congress
The Continental Congress faced significant obstacles organizing and paying for the Revolutionary War effort. This was largely due to their resistance to taxing citizens which stemmed from ideals of independence focused on the issue of 'no taxation without representation'. Consequently, the Congress lacked a solid financial foundation. The expenses of arming and provisioning soldiers increased over time, escalating the financial burden. This led the Congress to print excessive amounts of money, which rapidly depreciated, resulting in the currency known as 'continental' becoming virtually worthless. Furthermore, the Congress was unable to compel states to meet their financial obligations and relied on borrowing from other nations and wealthy patriots. These funding challenges were compounded by organizational difficulties within the Continental Army, such as shortages of equipment and varied uniforms, highlighting the lack of resources and proper systematization in their war effort.
To manage these various issues, the Continental Congress borrowed money and printed large quantities of currency, but this caused rampant inflation and diminished the value of the 'continental'. States also began to issue their own currency, further complicating the financial landscape. Economic difficulties extended post-war as the Confederation Congress struggled to meet its obligations, given that it could not levy taxes directly and had to rely on state contributions. High taxes at the state level led to widespread discontent among citizens, exacerbating the financial and social strife.
The inability to regulate commerce and the resultant fiscal chaos eventually spurred leaders to seek reform, culminating in the Constitutional Convention where a more robust federal system, capable of addressing these issues, was devised, leading to the creation of the United States Constitution.