Federal Powers and Separation of Powers

Great Britain had operated the American colonies under an economic concept called mercantilism. Under mercantilism, Great Britain expected the colonies to export raw materials such as food, timber, and furs at low prices while importing finished products at higher prices. Mercantilism worked best for Great Britain if the colonies were prohibited from trading with other countries. The colonies, however, often failed to remit taxes, and tended to trade with other countries in a manner favorable to their own economic development.

After the French and Indian Wars ended in 1763, leaving Great Britain in heavy debt, the British Parliament embarked on a mission to bring the colonies under strict financial control. The result was a series of legislation that became known as the Intolerable Acts. This legislation included the Stamp Act of 1765 and led to the American rallying cry "No taxation without representation." The colonists ultimately reacted to Britain's financial campaign with revolt, and the Revolutionary War ensued.