1. customer (i.e., citizen) loyalty and residence.
Permissive federalism: despite the constitution, states ultimately govern only with permission from national government.
“Our federalism”: argues that the constitution limits the power of the national government and reserves most powers to the states (10th amendment).
Alternatives to Federalism:
Unitary system – sovereign power flows from people to nat’l gov’t to state gov’ts.
Confederation – sovereign power flows from people to states to national gov’t.
Federation – sovereign power flows directly from people BOTH to national AND state gov’ts.
Why Federalism?
Check on tyranny – diffuses power vertically; prevents dominance of single-interest group.

2. Federalism allows for unity without uniformity – states able to satisfy the particular policy demands of their particular citizens (diversity).
Encourages experimentation – states are “laboratories of democracy” where policy experiments can occur and other gov’ts can evaluate their success for adoption considerations; leads to policy innovation, better policy.
Keeps gov’t closer to people – more participation in, access to, and responsiveness from government.
Constitutional Structure of Federalism
Powers delegated to national government
Express/Enumerated
Implied (necessary and proper clause)
Inherent – foreign affairs domain of national gov’t whether derived from constitution or not.

3. National Supremacy clause
War Power
Regulate interstate and foreign commerce
Tax and Spend
Powers of the States
Concurrent Powers (e.g., tax and spend)
All else not given exclusively to national gov’t.
Those state laws/powers that do not compete with national laws/powers.
Limitations or Obligations on gov’t power
Make treaties (N-only)
Coin money (N-only)
Tax imports (N-only)
Maintain an Army (N-only)
Make war (N-only)
Violated Constitutional Rights of individuals (neither)