1. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. The Federal System Chapter 3

2. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. The Nature of Federalism Teen Drinking (1981-2000) Teen Drinking (1981-2000) Drinking age and legal limits Drinking age and legal limits Physician Assisted Suicide (2001) Physician Assisted Suicide (2001) Federalism is at the center of important battles over public policy. It can determine the winners and losers at the local, state, and national levels. Whoever is in charge of the presidency or congress will make crucial decision s about how we are governed and what the proper role of government will be in our lives Federalism is at the center of important battles over public policy. It can determine the winners and losers at the local, state, and national levels. Whoever is in charge of the presidency or congress will make crucial decision s about how we are governed and what the proper role of government will be in our lives

3. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Group Activity Become an expert on your objective. Communicate your objective to other groups. Become an expert on your objective. Communicate your objective to other groups.

4. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federalism: National and State Sovereignty The Argument for Federalism The Argument for Federalism Authority divided into two levels: national and regional Authority divided into two levels: national and regional Protects liberty Protects liberty Moderates government power by sharing Moderates government power by sharing Way of making both large and small states happy Way of making both large and small states happy

5. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Competing Views Hamilton (nationalist) Hamilton (nationalist) People created national government/Constitution, therefore it was supreme People created national government/Constitution, therefore it was supreme National government should take the lead in making government decisions National government should take the lead in making government decisions Broad interpretation of elastic clause Broad interpretation of elastic clause National government stands for all people; states just some people National government stands for all people; states just some people

6. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Competing Views Jefferson (state’s rights) Jefferson (state’s rights) Fear of domination of national government Fear of domination of national government Constitution is a compact among states; because created by states, national government should be subordinate Constitution is a compact among states; because created by states, national government should be subordinate Narrow interpretation of the elastic clause Narrow interpretation of the elastic clause States are closer to the people therefore know what is better for the people States are closer to the people therefore know what is better for the people

7. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Distribution of Powers Powers of Nation Powers of Nation Delegated (enumerated), Implied, Inherent) Delegated (enumerated), Implied, Inherent) Supremacy Clause (VI, sec 2) Supremacy Clause (VI, sec 2) Powers of State Powers of State Reserved Powers (10 th Amendment) Reserved Powers (10 th Amendment) Other Powers Other Powers Concurrent Powers Concurrent Powers Prohibited Prohibited

8. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federalism as a Governing System, Figure 3-1 Federalism as a Governing System, Figure 3-1

9. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federalism: National and State Sovereignty The Powers of the Nation The Powers of the Nation Enumerated (delegated) powers Enumerated (delegated) powers Those powers specifically granted to the national government by the Constitution (Art. I, sec. 8) Those powers specifically granted to the national government by the Constitution (Art. I, sec. 8) 17 powers  secure defense & stable commerce 17 powers  secure defense & stable commerce Implied powers Implied powers Those delegated powers of the national government that are not specifically stated in the Constitution, but that are implied by the interpretation of the Elastic Clause Those delegated powers of the national government that are not specifically stated in the Constitution, but that are implied by the interpretation of the Elastic Clause

10. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federalism: National and State Sovereignty The Powers of the Nation The Powers of the Nation Inherent powers  the powers, usually in foreign affairs that grow out of the very existence of the national government Inherent powers  the powers, usually in foreign affairs that grow out of the very existence of the national government Acquire territory, recognize foreign states, immigration policy Acquire territory, recognize foreign states, immigration policy

11. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federalism: National and State Sovereignty The Powers of the States (reserved powers) The Powers of the States (reserved powers) Constitution assumes that state governments should regulate their internal affairs Constitution assumes that state governments should regulate their internal affairs Oversight of public morals, education, and safety Oversight of public morals, education, and safety Establish local government, regulating trade within the states, conducting elections Establish local government, regulating trade within the states, conducting elections

12. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federalism: National and State Sovereignty Concurrent Powers Concurrent Powers Levying and collecting taxes, establishing and maintaining court systems, borrowing money Levying and collecting taxes, establishing and maintaining court systems, borrowing money Prohibited Powers Prohibited Powers National Government—taxing exports, interfere with states ability to carry out their duties National Government—taxing exports, interfere with states ability to carry out their duties States—recognizing other territories, printing money, tax imports/exports, engage in war States—recognizing other territories, printing money, tax imports/exports, engage in war National and state governments may not issue Bills of Attainder or ex post facto laws National and state governments may not issue Bills of Attainder or ex post facto laws

13. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federal and State Responsibilities Federal  States Federal  States Republican form of government Republican form of government Protection against domestic insurrection Protection against domestic insurrection Admission of new states Admission of new states States  Federal States  Federal National guard National guard Election, voter registration, polling procedures Election, voter registration, polling procedures Amending the constitution Amending the constitution Congressional districts Congressional districts

14. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Federal and State Responsibilities State  State State  State Full Faith and Credit Clause (Art. IV, sec. 1) Full Faith and Credit Clause (Art. IV, sec. 1) Acts or documents considered legal in one state must be accepted as valid by all other states Acts or documents considered legal in one state must be accepted as valid by all other states Extradition Extradition Same privileges and immunities (exceptions tuition, voting ) Same privileges and immunities (exceptions tuition, voting )

15. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Nationalism (1787-1830) Nationalism (1787-1830) Not spelled out in Constitution, balance has shifted with Supreme Court acting as referee Not spelled out in Constitution, balance has shifted with Supreme Court acting as referee McCulloch v. Maryland (1819) McCulloch v. Maryland (1819) Did Congress have the power to charter a bank? Did Congress have the power to charter a bank? Yes via the elastic clause (Constitution as living document) Yes via the elastic clause (Constitution as living document) If the bank was constitutional, could the state tax it? If the bank was constitutional, could the state tax it? No, because of the supremacy clause No, because of the supremacy clause

16. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Nationalism (cont.) Nationalism (cont.) Gibbons v. Ogden (1824) Gibbons v. Ogden (1824) New York, New Jersey, national regulation of steamboats New York, New Jersey, national regulation of steamboats What was the scope of Congress’s authority under the commerce clause? What was the scope of Congress’s authority under the commerce clause? Did Congress’s power to regulate interstate commerce extend to intrastate commerce? Did Congress’s power to regulate interstate commerce extend to intrastate commerce? Was the power to regulate commerce a concurrent power? Was the power to regulate commerce a concurrent power?

17. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Gibbons v. Ogden Gibbons v. Ogden Commerce is all commercial commerce and commerce powers had no limits except those specifically identified in the Constitution Commerce is all commercial commerce and commerce powers had no limits except those specifically identified in the Constitution By 1930s commerce clause primary constitutional basis for national regulation By 1930s commerce clause primary constitutional basis for national regulation

18. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Dual Federalism I (1830-1860s) Dual Federalism I (1830-1860s) State and federal government seen as competing power centers State and federal government seen as competing power centers Certain policy areas belonged to national government, others to states Certain policy areas belonged to national government, others to states National government supremacy versus rights of separate states National government supremacy versus rights of separate states Taney Court Taney Court

19. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Dual Federalism I (cont.) Dual Federalism I (cont.) Taney Court-narrow view of powers of national government Taney Court-narrow view of powers of national government Use of 10 th Amendment Laissez-faire economic policies Use of 10 th Amendment Laissez-faire economic policies Dred Scott v. Sanford (1857) Dred Scott v. Sanford (1857) Slaves are “property” and are barred from citizenship and could not sue for freedom in federal courts Slaves are “property” and are barred from citizenship and could not sue for freedom in federal courts

20. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Dual Federalism I (cont.) Dual Federalism I (cont.) Nullification Doctrine Nullification Doctrine John C. Calhoun John C. Calhoun Essentially the Civil War brought to an ultimate and violent end to the ideological debate that had been started by the Federalists and Anti-Federalists in 1787 Essentially the Civil War brought to an ultimate and violent end to the ideological debate that had been started by the Federalists and Anti-Federalists in 1787

21. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Dual Federalism II (1865-1933) Dual Federalism II (1865-1933) Grows out of protracted debate about commerce and who has the right to regulate it Grows out of protracted debate about commerce and who has the right to regulate it National government rules by enumerated powers only National government rules by enumerated powers only Each government is sovereign within its own sphere and these spheres should be kept separate Each government is sovereign within its own sphere and these spheres should be kept separate Tension vs. Cooperation Tension vs. Cooperation

22. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Dual Federalism II (cont.) Dual Federalism II (cont.) Supreme Court rulings allowed rights of African Americans to be limited while increasing power of the corporations (laissez-faire) Supreme Court rulings allowed rights of African Americans to be limited while increasing power of the corporations (laissez-faire) Plessy v. Ferguson (1896) Plessy v. Ferguson (1896) Court claimed that corporations were persons within the meaning of the 14 th Amendment and were protected from substantial state regulation Court claimed that corporations were persons within the meaning of the 14 th Amendment and were protected from substantial state regulation States dominant in education, civil rights, law and order States dominant in education, civil rights, law and order

23. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Cooperative Federalism (1933-1960s) Cooperative Federalism (1933-1960s) National and state levels of government should cooperate on policy and it is natural for governments to share power National and state levels of government should cooperate on policy and it is natural for governments to share power New Deal Period increased federal intervention in terms of economic, social, and political lives of states New Deal Period increased federal intervention in terms of economic, social, and political lives of states Supreme Court rules that national government could regulate manufacturing Supreme Court rules that national government could regulate manufacturing Shared costs between states and federal government Shared costs between states and federal government Federal government “attaches strings” Federal government “attaches strings”

24. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Cooperative Federalism (cont.) Cooperative Federalism (cont.) Fiscal Federalism—pattern of spending, taxing and providing grants to state governments Fiscal Federalism—pattern of spending, taxing and providing grants to state governments Most important tool to influence state level policy Most important tool to influence state level policy Congress authorizes grants and establishes rules for how money can be used Congress authorizes grants and establishes rules for how money can be used Fiscal federalism is the grants in aid system Fiscal federalism is the grants in aid system

25. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Fiscal Federalism (cont.) Fiscal Federalism (cont.) Federal aid to states has increased in most years since 1950 (459 billion in 2007) Federal aid to states has increased in most years since 1950 (459 billion in 2007) See Figure 3-2, Table 3-2 pp. 85-86 See Figure 3-2, Table 3-2 pp. 85-86 Types of Grants Types of Grants Categorical Grants Categorical Grants Block Grants Block Grants General Purpose Grants (revenue sharing) General Purpose Grants (revenue sharing)

26. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Creative Federalism (1960s-1970s) Creative Federalism (1960s-1970s) Expansion of national power Expansion of national power Great Society programs of Johnson administration Great Society programs of Johnson administration States circumvented States circumvented

27. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Competitive Federalism (1969-1974) Competitive Federalism (1969-1974) Nixon and revenue sharing (1969-1986) Nixon and revenue sharing (1969-1986) Reduced federal “strings”/conditions on money Reduced federal “strings”/conditions on money Increased amount of money available to states and localities Increased amount of money available to states and localities Idea that federal government sets goals and states implement Idea that federal government sets goals and states implement Restores some power to state and local governments Restores some power to state and local governments

28. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism New Federalism (1981-1992) New Federalism (1981-1992) More rights to states but still punishment if state’s didn’t comply with federal guidelines More rights to states but still punishment if state’s didn’t comply with federal guidelines 1981 federal highway funds attached to a state’s drinking age 1981 federal highway funds attached to a state’s drinking age Reagan Revolution reduce size of federal government re social spending and taxation Reagan Revolution reduce size of federal government re social spending and taxation Movement from categorical (77) to (9)block grants to reduce the role of federal government Movement from categorical (77) to (9)block grants to reduce the role of federal government Funding and tax cuts caused fights between state over federal funding for Medicaid, AFDC and Social Security Funding and tax cuts caused fights between state over federal funding for Medicaid, AFDC and Social Security

29. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Problems with New Federalism Problems with New Federalism Rising deficits of states; trying to pick up slack from federal government Rising deficits of states; trying to pick up slack from federal government Public still demanded services the national government was unwilling to provide Public still demanded services the national government was unwilling to provide States had to raise taxes to recoup lost revenue States had to raise taxes to recoup lost revenue

30. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Regulatory Federalism (1960s-present) Regulatory Federalism (1960s-present) Idea that the federal government sets goals and the states implement Idea that the federal government sets goals and the states implement Mandates Mandates Funded v. unfunded Funded v. unfunded Clean Air Act Amendments (1990) and Americans with Disabilities Act Clean Air Act Amendments (1990) and Americans with Disabilities Act

31. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Devolution Revolution (1990s) Devolution Revolution (1990s) 1994 Republicans win majorities in both houses of Congress 1994 Republicans win majorities in both houses of Congress Decrease the size of federal government Decrease the size of federal government 1996 AFDC  TANF 1996 AFDC  TANF shift burden to states shift burden to states overall funding levels decreased overall funding levels decreased Clinton as spin doctor Clinton as spin doctor Increased responsibility of states as a way to decrease waste Increased responsibility of states as a way to decrease waste Balanced Budget Act 1997 Balanced Budget Act 1997

32. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism See pp. 74-76 to get idea of trends in balance of power between state and national levels of government via the Supreme Court See pp. 74-76 to get idea of trends in balance of power between state and national levels of government via the Supreme Court

33. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Competitive Federalism (overlaps with New Federalsim) Competitive Federalism (overlaps with New Federalsim) Increased competition between states for federal funds Increased competition between states for federal funds

34. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Interpretations and Evolution of Federalism Regulatory Federalism (1960s-present) Regulatory Federalism (1960s-present)

35. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Advantages of Federalism Mobilization of Political Activity Mobilization of Political Activity Harnesses the Power of Interest Groups Harnesses the Power of Interest Groups Diversity of Policies=experimentation, creativity Diversity of Policies=experimentation, creativity Uniform laws don’t make sense (New Jersey v. Montana speed limits) Uniform laws don’t make sense (New Jersey v. Montana speed limits) See also Table 3-1 p. 66 See also Table 3-1 p. 66

36. Copyright © 2008 The McGraw-Hill Companies Inc. Permission Required for Reproduction or Display. Disadvantages of Federalism Confusion of Political Activity Confusion of Political Activity Interest groups can block the will of the majority Interest groups can block the will of the majority Diversity of Policies=source of inequality between citizens of different states Diversity of Policies=source of inequality between citizens of different states Diversity of Policies=confusion Diversity of Policies=confusion See also Table 3-1, p. 66 See also Table 3-1, p. 66