101I POLS American National Government
Hagan
Chapter Three
Federalism: Forging a Nation
Learning Objectives
Having read the chapter, the students should be able to do each of the following:
. Define federalism and describe the bargaining process at the Philadelphia Convention resulting in its
inception.
. Specify the difference between enumerated, implied, and reserved powers. Explain the purpose underlying
this distribution of power.
. Distinguish between the necessary and proper, supremacy, and commerce clauses, explaining how their
constitutional interpretations have affected the division of powers in American government.
. Outline the different stages in the Supreme Courts interpretation of federalism, referring to its major
decisions and their significance.
Focus and Main Points
The author focuses on the issue of federalism. The constitutional debate of 1787 is discussed in terms of the
relationship between the nation and the states. The changing nature of federalism over time is explored, and
the chapter concludes with a brief commentary on federalism today. The main points of the chapter are as
follows:
The power of government must be equal to its responsibilities. The Constitution was written because
the nations government under the Articles of Confederation was too weak to accomplish its expected
goals, particularly those of a strong national defense and an integrated economy. The Framers created a
stronger national government by granting it significant powers, particularly in the areas of taxation and
regulation of commerce.
Federalismthe constitutional division of governing authority between two levels, nation and states
was the result of political bargaining. Federalism was not a theoretical principle, but a compromise
necessary in 1787 by the prior existence of the states.
Federalism is not a fixed principle for allocating power between the national and state governments,
but a principle that has changed in response to changing political needs. Federalism has passed through
several distinct changes during the nations history.
Contemporary American federalism tilts toward national authority, reflecting the increased
interdependence of American society. However, there is a current trend toward devolution of power
from Washington, D.C. to the states.
Chapter Summary
The foremost characteristic of the American political system is its division of authority between a
national government and the states. The first U.S. government, established by the Articles of Confederation,
was essentially a loose alliance of states.
In establishing the basis for a more powerful national government, the Framers also made provisions
for safeguarding state interests. The result was the creation of a federal system in which sovereignty was
vested in both national and state governments. The Framers carefully enumerated the general powers of the
national government and granted it implied powers through the necessary and proper clause in Article I. Other
powers are reserved to the states by the Tenth Amendment.
From 1789 to 1865, the nations survival was at issue. The states found it convenient to argue that their
sovereignty took precedence over national authority. In the end, it took the Civil War to cement the idea that
the United States was a union of people, not of states. From 1865 to 1937, federalism reflected the doctrine
that certain policy areas were the exclusive responsibility of the national government, while others belonged
exclusively to the states. This constitutional position enabled the South to discriminate against African
Americans and promoted the laissez-faire doctrine that big business was largely beyond governmental control.
Federalism, as we perceive it today, began to emerge in the late 1930s during the presidency of Franklin D.
Roosevelt.
In the areas of commerce, taxation, spending, civil rights, and civil liberties, among others, the federal
government now has a very large role, one that is the inevitable consequence of the increasing complexity of
American society and the interdependence of its people. National, state, and local officials now work closely
together to solve policy problems, a situation that is commonly described as cooperative federalism. Grants-inaid from Washington, D.C. to the states and localities have been the chief instrument of national influence.
States and localities have received billions in federal assistance; in accepting that money, they have also
accepted both federal restrictions on its use and the national policy priorities that underlie the granting of the
money.
In recent years, the relationship between the nation and the states has again become a priority issue.
Power is shifting downward to the states, and a new balance in the ever-evolving system of U.S. federalism is
taking place. This change, as has been true throughout U.S. history, has sprung from the demands of the
American people.
Major Concepts
federalism
sovereignty
confederacy
unitary system
enumerated (expressed) powers
supremacy clause
necessary and proper clause (elastic clause)
implied powers
reserved powers
dual federalism
commerce clause
cooperative federalism
fiscal federalism
grants-in-aid
categorical grants
block grants
devolution
Lecture Outline
This lecture outline closely follows the text in its organization. The instructor can use this outline as a
lecture aid.
The focus of this chapter is on federalism. The author describes constitutional the debate in
Philadelphia in 1787 over the relationship between the national government and the states, explores how
federalism has changed over time, and concludes with a brief commentary on federalism in contemporary
America.
Oregons Death with Dignity Act is typical of thousands of controversies concerned with whether state
or national authority should prevail. This is due to the fact that Americans possess dual citizenship: they are
both citizens of the United States and the state in which they reside.
I. Federalism: National and State Sovereignty
The decision to have a federal government is demonstrative of the Framers belief that a confederal form of
government was destined to fail.
Federalism is the division of ultimate governing authority (sovereignty) between national and regional
governments. The arguments for federalism are as follows: it protects liberty; it promotes a responsive
government; and it creates a strong government thus overcoming the deficiencies of the Articles of
Confederation.
Americas national government has enumerated powers, which are designed primarily to enable it to
provide for the nations defense and commerce.
The national government also has implied powers through the necessary and proper clause which
gives it the flexibility and responsiveness to meet changing national needs.
The states powers are called reserved powers and are provided through the Tenth Amendment.
The ratification debate revolved around the issue of national versus state sovereignty.
Anti-Federalists favored a weaker national government and greater state authority.
Federalists favored a stronger national government and greater national authority.
II. Federalism in Historical Perspective
Federalism has passed through distinct stages in the course of its development. The first phase from 1789 to
1865 was characterized by conflict between the nationalist and states rights views.
The nationalist view held that when national and state law conflicted, national law was paramount.
This was reflected in the Supreme Courts McCulloch v. Maryland (1819) decision.
The states rights view held that each state had the constitutional right to nullify a national law and is
reflected in the Supreme Courts Dred Scott (1857) decision.
The nationalist view was upheld through the Union victory in the Civil War. Between 1865 and 1937,
dual federalism and laissez-faire capitalism were the leading principles in federalism.
Dual federalism held that a precise separation of national and state authority was both possible and
desirable, and its influence is evident in the Supreme Courts infamous Plessy v. Ferguson (1896)
decision.
Laissez-faire capitalism holds that business interests should be allowed to act as they please, with little
or no regulation by the national government. Using this philosophy as its guide, the Supreme Court
protected business from substantial regulation by either state governments or the national government.
Both dual federalism and laissez-faire capitalism lost force as a result of social and economic change in
the twentieth century.
Despite many of its programs being initially opposed by a conservative Supreme Court, Franklin
Roosevelts New Deal was eventually accepted by the Court. The justices broadened their
interpretation of the federal governments taxing and spending powers.
III. Federalism Today
Developments of recent decades have diminished state authority in the federal system.
The actions of the national government are not likely to be blocked on constitutional grounds.
The powers of the states are still vital, but far less autonomous than before the New Deal. The states
and their citizens have become increasingly interdependent, providing the impetus for a stronger
national government. This cooperative federalism involves national, state, and local governments
working together to solve policy problems.
The national governments fiscal advantage in raising money has often made money the basis of the
relationship between the national and state governments. This fiscal federalism is the expenditure of
federal funds on programs run in part through state and local governments. The national government
provides some or all of the funds for given programs and the states and localities administer them.
The devolution philosophy has emerged in recent years. Devolution is the idea that American
federalism will be improved by a shift in authority from the national government to the state and local
governments. This belief has been given impetus by fiscal constraints and the Republican
congressional victories in 1994.
IV. The Publics Influence: Setting the Boundaries of Federal-State Power
President Franklin Roosevelts programs, such as Social Security, attracted a great deal of public support.
Lyndon Johnsons Great Society programs of the 1960s reflected the desire of Americans for greater
government involvement in public policy matters. Today, public opinion is in support of the current rollback
in federal authority.
The GOP victory in 1994 gave the Republicans numeric control of both chambers of Congress.
The public confidence in Washington, D.C. has dramatically diminished.
People feel that officials in Washington, D.C. do not care about them.
Each generation of Americans has devised a balance of national and state power that serves its
interests. Public opinion defines the boundaries of federal and state power.