Economic Impact

The American economy was left with a mixed bag of gains and drawbacks following the colony's triumph in the Revolutionary War. Previously imposed trade and industrial restrictions were lifted. As a result, the United States created a merchant marine and industrial industry, particularly in armaments and consumer goods. The relaxation of limits on Western development resulted in a migration of European-Americans across the Appalachian Mountains. While this made life tough for the unlucky Native Americans whose territories were further conquered, it gave economic possibilities for European-Americans and immigrants who arrived after the war.

The war's outcomes did not all have a good influence on the American economy. American merchants were barred from the British West Indies, and their preferred status as a trading partner with Britain was gone. Furthermore, when wartime demand decreased, agricultural prices dropped, and cities had high unemployment rates. In the 1780s, American merchants continued commerce with Mediterranean nations and began trading with China. Pirate assaults, on the other hand, impeded Mediterranean trade, and American ships were no longer protected by the British Navy. In the early nineteenth century, Chinese commerce became less profitable as prices in the United States declined, the Chinese market got saturated with American products, and the supply of furs and sandalwood, the principal commodities exchanged, became scarce.

Currency and debt, on the other hand, were the war's most damaging economic consequences. The continental currency had a high rate of inflation and had depreciated significantly. To make matters worse, the federal government owed $12 million in international debt and $44 million in domestic debt, while state governments owed $25 million, largely in war bills. Postwar economic planners were primarily concerned with lowering inflation and increasing the value of the currency, as well as repaying and funding government war obligations.