Why was the resolution of the federal government’s fiscal problems so critical to the success of the new nation?

Because the federal government was bankrupt, and without solving its fiscal problems, it could not raise an army in case of invasion from foreign powers, like Britain or Spain.

This is why the US constitution gave the federal government the faculty of raising federal taxes, in order to raise the necessary amount of money to protect the union.

president thomas jefferson hoped that the embargo act of 1807 would the united states by demonstrating to britain and france their dependence on american goods, convincing them to respect american neutrality and stop impressing american seamen. instead, the act had a devastating effect on american trade.