Short Answer 
The Articles of Confederation, adopted in 1777, were the first U.S. Constitution aiming to unify the states but had significant limitations, including the inability to impose taxes. This weakness led to financial instability and competing interests among states, highlighting the need for a stronger central government, ultimately resulting in the U.S. Constitution of 1789.
Step 1: Understanding the Articles of Confederation
The Articles of Confederation, adopted on November 15, 1777, by the Second Continental Congress, served as the first Constitution for the United States. This framework was intended to unify the thirteen states into a loose Confederation. The Articles were meant to establish a system of governance until the current Constitution came into effect in 1789, which sought to create a more structured central authority.
Step 2: Powers and Limitations of the Confederation
Under the Articles of Confederation, the government was granted certain powers, but it faced significant limitations. It could:
- Wage war
- Negotiate treaties
- Resolve issues related to western territories
- Issue currency and secure loans
However, the government had no authority to raise taxes, leading to crucial financial weaknesses and reliance on state contributions, impacting its effectiveness.
Step 3: Consequences of a Weak Central Government
The weaknesses inherent in the Articles led to various challenges for the Confederation. The inability to impose taxes created:
- Financial instability
- Competing interests among states
- Rivalries that hindered cooperative governance
These issues highlighted the need for a stronger central government, paving the way for the development of the U.S. Constitution to rectify these deficiencies and unify the states more effectively.