Between 1774 and 1789, the American economy (GDP per capita) shrank by close to 30 percent. Devastation of real property, a contraction of the labor force due to war deaths and injuries, the cessation of British credit, and exclusion from markets in Britain and West Indies resulted in widespread economic collapse. While the Treaty of Paris in 1783 resulted in a short boom in commercial activity, markets again quickly crashed due to a lack of cash, credit, and markets. New York City merchant Anthony L. Bleeker said in 1786, “As money [has] become exceedingly scarce and business very dull, the shopkeepers, country dealers, &c. are very cautious and backwards in buying; and it is really very difficult to make sales to any tolerable advantage, especially when immediate payment is required.”
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