USA HISTORY

Detailed explanation-1: -As cash flow declined, the United States of America had to rely on European loans to maintain the war effort; France, Spain and the Netherlands lent the United States over $10 million during the war, causing major debt problems for the fledgling nation.

Detailed explanation-2: -The Growing National Debt Debts incurred during the American Revolutionary War amounted to over $75 million by January 1, 1791. Over the next 45 years, the debt continued to grow until 1835 when it notably shrank due to the sale of federally-owned lands and cuts to the federal budget.

Detailed explanation-3: -After fighting between the Americans and the British ended in 1783, the new U.S. Government established under the Articles of Confederation needed to pay off its debt, but lacked sufficient tax authority to secure any revenue.

Detailed explanation-4: -British Debt Ironically, this was one of the key factors that caused the revolution in the first place. Britain had acquired a massive debt fighting the French and Indian War. It attempted to pay down that debt by taxing colonists through the Stamp Act, generating far more resentment than revenue.