1. Traditional System From 1789-1933 when the style of governing from the state and national level closely reflects the intentions of the framers of the Constitution The national government was pretty small and most of the power was with the states The national government built or sponsored the construction of roads, canals, and bridges It provided cash subsidies to shippers and shipbuilders and distributed free low-priced public land to encourage western settlement It placed heavy taxes on imported goods It protected patents and provided for a common currency

2. Virtually all of the national government’s functions were aimed at assisting commerce (trade, business) None of the national government’s programs pressured or coerced citizens The emphasis on government programs was on assistance, promotion, and encouragement

3. So what about the states? State legislatures were actively involved in economic regulation during the 1800s In the US, private property exists only in state laws and state court decisions regarding property, trespass, and real estate Laws concerning slavery were a subdivision of property law in states where slavery existed The practice of important professions, such as law and medicine, was and is illegal except as provided for by state law Marriage, divorce, birth or adoption of kids – all regulated by state law Education (public schools) is controlled by the state Most of the fundamental governing in the US was done by the states

4. The Framers Knew What They Were Doing By giving so much power to the states, the Constitution saved the national government from many policy decisions that might have proved too divisive for a large and very young country Federalism contributed significantly to the political stability of the young nation

5. Establishing National Supremacy Chapter 3

6. Establishing National Supremacy Four key events have been largely responsible for the federal government gaining power relative to the states: ◦ McCulloch v. Maryland (1819) ◦ Gibbons v. Ogden (1824) ◦ The Civil War (1861-1865) ◦ Brown v. Board of Education (1954) 6

7. McCulloch v. Maryland McCulloch v. Maryland (1819): the Supreme Court ruled that: ◦ Congress has the expressed powers to lay and collect taxes, as well as borrow money. ◦ In order to carry out (execute) its expressed powers, Congress has the implied power under the necessary and proper clause to pass a federal law establishing a national bank. ◦ Thus, the Maryland state law taxing the national bank was preempted under the supremacy clause since it conflicted with a federal law. 7

8. McCulloch v. Maryland The overall importance of McCulloch v. Maryland was: ◦ The Supreme Court interpreted the necessary and proper clause very broadly thereby creating the potential for Congress to have increased national powers. 8

9. Gibbons v. Ogden Commerce Clause: Article I, Section 8 of the Constitution gives Congress the power to regulate interstate (between the states) commerce. Gibbons: had a federal license to operate steam boats on interstate waters between New York and New Jersey. Ogden: had a state license to operate steam boats on interstate waters between New York and New Jersey. 9

10. Gibbons v. Ogden Gibbons v. Ogden (1824): A landmark case in which the Supreme Court: ◦ Interpreted very broadly the commerce clause giving Congress the power to regulate interstate commerce. ◦ Ruled that the federal license given to Gibbons preempted the state license given to Ogden. 10

11. Gibbons v. Ogden Gibbons v. Ogden (1824) was important because: ◦ established the supremacy of the national government in all matters affecting interstate commerce. 11

12. The Civil War The Civil War (1861-1865): ◦ often thought of mainly as a struggle over slavery ◦ was also a supremacy struggle between the national government and the states 12

13. Brown v. Board of Education Brown v. Board of Education (1954): the Supreme Court held that school segregation was unconstitutional. The federal government then enacted national laws and policies: ◦ to end segregation in schools, housing, public accommodations, voting, and jobs. 13

14. The Struggle for Racial Equality Became a States’ rights (10 th Amendment) issue: states do not have to submit to national laws when they believe the national government exceeds its authorities. The conflict over equality issues was decided in favor of the national government. 14