1. 8-3: National Supremacy

2. Big Idea: Constitutionalism
Enduring Understanding:
Federalism reflects the dynamic distribution of power between national and state governments.
Learning Objectives:
Explain how societal needs affect the constitutional allocation of power between the national and state governments.
Explain how the appropriate balance of power between national and state governments has been interpreted differently over time.

3. National and State Powers
Expressed Powers
Enumerated to national government
In the Constitution
Implied Powers
Derived from enumerated powers
Elastic clause
Inherent Powers
Held by all nations
Key enumerated powers include the right to regulate interstate and foreign commerce, the power to tax and spend, and the power to declare war.
Implied powers are derived from the elastic clause of the Constitution, which gives Congress the power “to make all laws which shall be necessary and proper for carrying into execution the forgoing powers and all other powers vested by the Constitution in the Government of the United States, or in any department or officer thereof.” The necessary and proper clause enables the national government to meet problems the Framers could not anticipate. It thus ensured the growth of national power by enabling the federal government to extend its powers beyond those enumerated in the Constitution. This clause also authorizes Congress to enact legislation necessary to carry out the powers of the other branches, for example to organize and reorganize the bureaucratic agencies of the executive branch.
Inherent powers derive from the fact that the United States is a sovereign nation. Under international law, all nation-states have the right to make treaties, wage war, and acquire territory.

4. National and State Powers
Reserved Powers
Held solely by states
Concurrent Powers
Exercised by both national and state governments
Prohibited Powers
Denied to either national or state government, or both
Concurrent powers include the power to tax, borrow money, and establish courts.
Examples of prohibited powers include the federal government not being able to tax exports and the states not being able to make treaties with foreign countries.

5. Constitutional Clauses
Supremacy Clause
Asserts authority of national government over the states
In discrepancies, federal laws supersede state laws
Commerce Clause
Plays a key role in the expansion of federal power
The following are regulated under interstate commerce powers
Radio signals
Telephone messages
The Internet
Roads
Financial transactions
The necessary and proper clause, commerce clause, the Civil Rights Act of 1964, categorical grants, and federal mandates have all increased the power of the federal government relative to the states.

6. Supreme Court Decisions
McCulloch v. Maryland (1819)
Background
Branch of national bank in Baltimore
Maryland imposed tax
Questions
Can Congress charter a bank?
YES—“necessary and proper” in order to collect revenue
Does a state have a right to tax an agency of the federal government?
NO—violates supremacy clause
Confirms implied powers
In 1816, Congress chartered the 2nd National Bank. In 1818, the Maryland legislature passed a law imposing a substantial tax on the operation of the Baltimore branch of the bank. James McCulloch, cashier of the Baltimore branch, refused to pay the tax. When the Maryland state courts ruled against him, McCulloch appealed to the U.S. Supreme Court.
Led by Chief Justice John Marshall, the Supreme Court ruled that creating a national bank was within the implied powers of Congress. Marshall acknowledged that the word “bank” is not in the Constitution. However, the Constitution does specifically grant Congress the power to impose taxes, issue a currency, and borrow money. Congress may then reasonably decide that chartering a national bank is a “necessary and proper” way to carry out those aforementioned expressed powers.
The Supreme Court also held that the Maryland law was unconstitutional because it violated the principle of the supremacy of the national government over the states. Marshall ruled that “the government of the United States, though limited in its power, is supreme within its sphere of action.” The Court also ruled that “the power to tax is the power to destroy.” In theory, a state could otherwise impose a 100% tax on a federal agency, essentially eliminating its function.
Federal programs to build interstate highways, regulate labor-management relations, and inspect food and drugs are all justified as implied powers of Congress.

7. Supreme Court Decisions
Gibbons v. Ogden (1824)
Background
NY grants Ogden monopoly
Gibbons receives license from federal government
Questions
Did the NY law violate the Constitution by attempting to regulate interstate commerce?
YES—commerce broadly defined
Does Congress have exclusive right to regulate interstate commerce?
YES
Broad definition of commerce enabled Congress to promote economic growth by supporting construction of roads, canals, railroads, etc.
The New York legislature granted Aaron Ogden an “exclusive license” to run a ferry service on the Hudson River between New York and New Jersey. Thomas Gibbons obtained a license from the federal government to operate a competing New York-New Jersey ferry service. Ogden claimed that Gibbons infringed on the monopoly rights granted to him by the state of New York.
Led by Chief Justice John Marshall, the Supreme Court defined commerce as all commercial business dealings. Commerce thus includes the production, buying, selling, renting, and transporting of goods, services, and properties. Because Congress regulates all interstate commerce, the Court upheld Gibbons’ right to operate a ferry service in competition with Ogden, as they were transporting people and goods between two states.

8. Supreme Court Decisions
Fourteenth Amendment
Protections of Bill of Rights extended to state governments
Increased federal authority
Brown v. Board of Education (1954)
School segregation unconstitutional
“Massive resistance”
Federal troops used to enforce desegregation
National standards on racial equality prevailed
Civil Rights Act of 1964 always upheld by the courts
Ability to regulate places of public accommodation, even if privately owned

9. States’ Rights
Does the 10th amendment mean the federal government ONLY has enumerated powers?
Nullification argument
Civil War as dispute over the relationship between states and the national government
Nullification refuted
Union indivisible
Devolution
Transfer of responsibilities back to states
Welfare Reform Act (1996)
States have discretion in allocation of funds
U.S. v. Lopez (1995)
Can the federal government pass a gun-free school zone law?
No—recognized state sovereignty and local control
John C. Calhoun of South Carolina argued that a state can nullify or refuse to recognize an act of Congress that it considered unconstitutional. The states enter into a voluntary pact with the Union, and when the national government violates the pact by passing an unconstitutional law, the states have the right to renounce it.