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Chapter 7. Federalism. How would you describe the current condition of American government? Federal government? State government? Local government?. Federalism:. A system in which governmental power is divided into two or more levels. Federalism places limits on government.
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Chapter 7 Federalism
How would you describe the current condition of American government? • Federal government? • State government? • Local government?
Federalism: • A system in which governmental power is divided into two or more levels.
Federalism places limits on government. • Limited government is a restraint to tyranny. • One way to limit government is to divide and distribute power.
Ideally, the national government operates to meet national needs, whereas state and local governments serve community needs.
Delegated Powers • The national government has delegated powers that define the limits of its authority, as enumerated (spelled out) in the Constitution.
Delegated Powers • Delegated powers may be • Enumerated (ones specifically granted) or • Examples: Collect taxes, declare war, negotiate treaties • Implied (not spelled out but DERIVED from enumerated powers). • Example: Minimum wage laws, public education, welfare, social security
Many of the implied powers are derived from the “necessary & proper” clause in Article I Section 8 which provides for Congress to make all laws which are necessary and proper for carrying out its powers… • Known as the elastic clause because it has been stretched to expand the scope of national power.
State Power • The Tenth Amendment says that all powers not delegated to the national government are reserved to the states and the people. • Known as RESERVED POWERS they give states power to run their own affairs.
State Power • Examples of state power include • Public education • Speed limits & traffic laws • Minimum age limit for purchasing alcohol • The structure of the state government
State Power • Because states can choose many of their own laws, states differ. • These differences can allow for competition between states.
Limits to State Power • The Constitution also limits the powers of states. Article I Section 10. • States may NOT • Make treaties • Declare war • Print money (These powers are delegated to the national government.)
Limits placed by Bill of Rights • The Bill of Rights places restrictions on both the national and the state governments. • The Bill of Rights protects individual liberties from encroachments by government at every level.
Every new law limits personal liberty in some way. • Laws against talking on cell phones while driving restricts drivers’ freedom to use their property. • Curfew laws restrict the freedom of people to go and come as they please. • Laws outlawing certain kinds of guns limits a person’s freedom to choose what kind of gun to own.
Laws against women voting would take away the voting rights of half the population.
Local Governments • Local governments have no Constitutional identity but derive their authority from state governments. (They are not mentioned in the Constitution.) • Local governments serve to implement state laws. • State and local governments are interdependent.
Interstate Relationships • Differing interests and differing laws lead to cooperation as well as conflicts between states.
Interstate Relationships • State Relations • Full Faith & Credit (Art IV Sec I) – States must respect the laws and legal rulings of other states. • Two exceptions occur: • Only applied to civil law • Doesn’t apply in some cases of divorce
Interstate Relationships • State Relations • Privileges & Immunities – States can’t restrict a non-resident’s activities. • Work, Buying and selling, etc. • Some restrictions are allowed. • Fees for out of state students • Fees for out of state hunting/fishing licenses
Interstate Relationships • Extradition (Art IV Section 2 Clause 2) – States must return alleged criminals to the state in which the crime was committed for prosecution.
Constitutional Supremacy • The states and their laws and judicial rulings cannot contradict national law or Supreme Court rulings. • Article VI Clause 2.
Developments in Federalism • People used to view themselves as citizens of their states first and the nation second. • States’ rights and decentralization were strongly defended. • Dual federalism – National and state governments were sovereign within their own spheres.
Developments in Federalism • Growth of Interdependence • The Union victory in the WBS changed the relationship between the federal and state governments. • The national government weakened state governments and limited their power while expanding its own.
Income Tax • Central Bank • National paper currency
Growth of Interdependence • Commerce • Transportation • Need for uniformity of some laws
Another significant change came during WWI and again during the Great Depression of the 1930s. • Social and economic programs (New Deal) • National welfare programs • Once these bureaucracies were established, they were impossible to eliminate and never went away.
Financing Federalism • How does the federal government distribute the funds it collects from the people of the states?
Financing Federalism • The federal government is so big, and so much money is involved that it has become quite COMPLICATED.
Financing Federalism • Federal Grants-In-Aid are distributed to the states via • Categorical Grants • Block Grants • Revenue Sharing
Financing Federalism • Categorical Grants – given for a specific purpose and with specific guidelines. • They have STRINGS attached. To get this money, you must comply with the federal government’s goals such as hiring quotas, environmental protection, small business, etc. • States usually must provide matching funds.
Categorical Grants • Formula grants – governed by demographic formulas. (Who lives here?) Job training for area of high unemployment (ex. Detroit) • Project grants
Categorical Grants • Categorical Grants are a major way the federal government exercises extra-Constitutional powers over the states. • States get the money if they do what the federal government wants. • States rarely reject the billions in funds for their communities.
Block Grants • Block Grants combine several categorical grants under a general umbrella, giving states more flexibility and say in how the funds are used.
Revenue Sharing • The federal government would allocate a portion of its tax revenues to the states with no strings attached. • At first they paid when the U.S. treasury had a surplus. In the 1970s and 1980s they started paying even when there was a deficit. • Dismantled in 1987.
The Problems of Federalism • How are the Division of Powers between States and the National Government maintained?
National office-holders are elected from the state and local levels. (435 districts & 50 states) • Political parties are built on the state level.
Give & Take • Federal government both serves & controls. • Grants provide services & give national government greater say in state and local policies. • Formerly state issues are now entangled in a “web of federal regulations.”
Growing National Debt • Federal aid to states contributes to the national debt.
Growing National Debt As of 25 September 2011 • 14,762,450,000,000 • Est. population of U.S. = 312,291,971 • Your share = $174,921 • The U.S. debt increases an average of $4.14 billion per day (since 1997). $4,140,000,000
Growing National Debt • Why doesn’t someone stop it? • States, localities, and special interest groups lobby hard to receive funding for their areas. • If the federal government stopped granting funds which states and cities depend upon, the states and cities would have to drastically cut employees and programs. • Selfishness on an institutional level.
Competition for Funding • Some states receive more federal funds than they pay in federal taxes. • Other states pay more than they receive. • http://www.visualeconomics.com/united-states-federal-tax-dollars/
Federalism was designed to check tyranny. • It’s up to responsible citizens to maintain the balance of the federal system. • Where does the ultimate authority reside in our democratic republic?