A political system where there are national and local units of government that can make decisions on some governmental activities.

Federalist 39 The Constitution “is in strictness, neither a national nor a federal constitution, but a composition of both” Federalist 46 Both the state and federal governments “are in fact but different agents and trustees of the people” Federalist 28 “…if their (the people) rights are invaded by either, they can make use of the other as an instrument of redress”

National Government States The People of the State Sovereignty is shared Both national & state gov have power over the people

States Central Government The People of the state States sovereign States enter for defense / trade

Sovereignty wholly in the hands of the national government Local government can be altered/abolished by national government

“…a Federal Republic” No historical precedent Both levels of government would have certain powers, but neither would have supreme power Different agents/trustees of the people If people’s rights are invaded by either, they can make use of the other as the instrument of redress 10 th Amendment – an afterthought Different interpretations by different Framers

Two Views… “Parasitic and Poisonous” Harold Laski “Main effect of federalism since the Civil War has been to perpetuate racism ” William Riker “virtue of the federal system lies in its ability to develop and maintain mechanisms vital to the perpetuation of the unique combination of government strength, political flexibility, and individual liberty…” –Daniel Elazer

FEDERALISM Protects powerful local interests Caters to self-interest of corrupt politicians Maintains racial segregation Protects vested interests Facilitates corruption Mobilizes political activity Promotes individual liberty Attacks segregation Regulates harmful economic practices Purifies politics before ideas gain national support

Effects of Federalism… Mobilizes political activity More people will become involved in political activity Decentralizes authority Lowers the cost of organized political activity

McCulloch v. Maryland (1819) Does Congress have the power to establish a bank? –Is it an enumerated power? –Article 1, sec 8 –Is it a delegated power? If Congress does have the right to establish a bank, can a federal bank be taxed by a state?

State / Federal Conflicts »Nullification »Dual Federalism »Interstate v. Intrastate Commerce »State Sovereignty

Social Economic 20 TH Century Imbalance of power between national and state governments National gov. assumed more responsibility/autho rity to deal with issues

GRANTS IN AID Land grants by government to finance education State universities built with land grant money Congress gave $200,000to pay for militia 1925 $114 million 1937 $300 million 1985 over $100 billion % of total federal spending/ 25-30% of state budgets from feds.

5 Largest Programs Low income housing Medicaid Highway construction Services to unemployed Welfare for disabled & mothers dependent children

REASONS WHY FEDERAL MONEY WAS ATTRACTIVE TO STATE OFFICIALS Practical Reasons: Helped state and local governments solve problems Gave states access to tax money of the fed. Gov. Washington pays bills / states run programs

Economic Reasons: Federal gov. had surplus of money in budget Federal income tax Federal control of money supply Federal authority to print more money if needed

Political Reasons: Free money for state projects a. whole country pays, not just the state b. money to one state literally guaranteed money to all states

1960’s Shift From what states demanded… To what feds considered national need Combat crime Reduce pollution Deal with drug abuse Aid to the poor

CATEGORICAL GRANTS For a specific purpose “strings attached” States must match some of grant $ Conditions –in - aid BLOCK GRANTS General rather specific purpose