Chapter 7

 How would you describe the current condition of American government?  Federal government?  State government?  Local government?

 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.

 The national government has delegated powers that define the limits of its authority, as enumerated (spelled out) in the Constitution.

 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.

 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.

 Examples of state power include  Public education  Speed limits & traffic laws  Minimum age limit for purchasing alcohol  The structure of the state government

 Because states can choose many of their own laws, states differ.  These differences can allow for competition between states.

 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.)

 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 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.

 Differing interests and differing laws lead to cooperation as well as conflicts between states.

 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

 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

 Extradition (Art IV Section 2 Clause 2) – States must return alleged criminals to the state in which the crime was committed for prosecution.

 The states and their laws and judicial rulings cannot contradict national law or Supreme Court rulings.  Article VI Clause 2.

 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.

 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.

 How does the federal government distribute the funds it collects from the people of the states?

 The federal government is so big, and so much money is involved that it has become quite COMPLICATED.

 Federal Grants-In-Aid are distributed to the states via  Categorical Grants  Block Grants  Revenue Sharing

 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.

 Formula grants – governed by demographic formulas. (Who lives here?) Job training for area of high unemployment (ex. Detroit)  Project 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 combine several categorical grants under a general umbrella, giving states more flexibility and say in how the funds are used.

 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.

 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.

 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.”

 Federal aid to states contributes to the 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

 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.

 Some states receive more federal funds than they pay in federal taxes.  Other states pay more than they receive.  states-federal-tax-dollars/ 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?