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Many regarded the insurgency as a fatal defect in the Articles of Confederation's national governance. Because Congress lacked the capacity to produce cash, it could not aid states in repaying their war debts, forcing them to tax their citizens disproportionately.
The insurgency, led by veteran Daniel Shays, highlighted the federal government's weaknesses under the Articles of Confederation since it couldn't raise the funds to pay the veterans or raise an army to put down the rebellion. The federal government could not tax citizens directly, but could only request revenue from the states.
People's opinions of the Articles of Confederation were impacted by Shay's Rebellion because it proved the need for a federal government and that the Articles would not suffice since they would not allow the nation to establish an army to put down rebellions like Shay's.
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