Reading Response 2
Chillilover
Week2Readings.zipHolding Together Federalism.pdf
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Theoretical Benefits and Limitations of Federalism
Centralization and Devolution in America
Benefits of federalism?
n Provides economic benefits q Market Preserving Federalism/Fiscal Federalism q Marketplace of Ideas
n Protects regional cultural, ethnic, and religious identities q Nation Preserving/Holding Together Federalism
n Encourages Policy Innovation q States are Laboratories of Democracy
Nation Preserving / Holding Together Federalism n Federalism
q protects regional cultural, religious, or ethnic minorities.
q grants minority groups regional policy autonomy.
q provides regionally concentrated minority groups voice in national government.
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Nation Preserving Federalism: Reduces Tension and Conflict
n Local Autonomy in Policy Decisions q Cultural preferences can be preserved locally while
not imposed on all. n National Representation in Central
Government q Gives minority groups say in national government
policy. q Senate and House provide for proportional and
geographical representation in US government.
Regional Diversity in the House
Geographic Diversity Senate
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Drawbacks of Nation-Preserving Federalism
o Malapportionment: o Unfair?
o Undemocratic?
o Partisan?
Unequal Senate?
Unequal Senate?
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Small State Bias in Senate
By 2040, 70% of the population is projected to live in 15 states.
This means that 30% of the population will choose 70! Senators.
Small State/Racial Bias Senate
States by GDP
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Thinking about asymmetrical federalism and secession • When will states pursue asymmetrical federalism or secession?
• Pressure emerges when the benefits of federalism diminish for actors in a subnational unit.
• Cultural threat of assimilation/domination are perceived to be high for members of a state (Ex: Quebec,)
• Economic future as independent state is strong • (Scotland, Quebec)
• When these conditions are met, pressures can lead to calls for secession, asymmetrical federalism, or policy innovation.
Calexit?
Drawbacks of Nation-Preserving Federalism
o Secession is messy and undefined.
o Under what terms should a unit be allowed to leave?
o To what extent should a unit be given unique powers to remain?
o Can other states prevent secession? How?
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Federalism Encourages Policy Experimentation
States are “Laboratories of Democracy” q States can experiment with novel policy solutions q All states can benefit from successful experiments q Only one state need suffer from a failure
Examples q Medical Marijuana and Marijuana Legalization q Three Strikes Laws and q Charter Schools and Voucher Programs q TRAP Abortion Laws q Tax and Expenditure Limitations on Government
Increases Policy Experimentation and Access to the Policy Process
n Federalism helps new ideas get into the political system. q State Legislatures q State Courts q Ballot Initiatives q Local and City Governments.
n Encourages “Venue Shopping” by outsider groups.
Laboratories of Democracy and Pandemic Politics. n Decentralization is allowed state governments to
experiment with appropriate policy responses to Covid- 19 epidemic.
n Early innovators can provide lessons to later states about regulatory framework, economic costs, and public health benefits of Covid-19 response policy
n Later adopting states can delay action– but at risk to public health, economy, and political stability.
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Laboratories of Democracy and Pandemic Politics.
Laboratories of Democracy and Pandemic Politics.
Laboratories of Democracy and Pandemic Politics.
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Laboratories of Democracy and Pandemic Politics.
n State governments are not equal innovators, nor are they equal borrowers.
q Republican governors and governors from states with more Trump supporters were slower to adopt social distancing policies.
q Problem severity not strongly associated with the timing of Covid-19 mitigation measures.
Laboratories of Democracy: Upsides
n The Good q Encourages policy innovation q Permits policy variation across states according to
regional values. q Allows states to evaluate and adopt policy
experiments that work.
Laboratories of Democracy: Downsides
n Cost associated with failed policy innovations.
n Race to the Bottom: States policy innovation may be biased towards certain types of policy.
n State partisanship/ideology may limit full adoption of policy across states.
__MACOSX/._Holding Together Federalism.pdf
Market Preserving Federalism Handout.pdf
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Theoretical Benefits and Limitations of Federalism
Centralization and Devolution in America
Key Themes and Questions
n Federal systems of government: q What are the major strengths and weaknesses of
federalism? n Federalism and policymaking:
q How federalism shape state and national policy- making?
q When does federalism lead to poor policy outcomes?
Benefits of federalism?
n Provides economic benefits q Market Preserving Federalism/Fiscal Federalism q Marketplace of Ideas
n Protects regional cultural, ethnic, and religious identities q Nation Preserving/Holding Together Federalism
n Encourages Policy Innovation q States are Laboratories of Democracy
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Market Preserving Federalism: Economic Security
n Provides for a common market q Permits free trade and free flow of goods and labor
across states
n Promotes specialization and competition in both economy and public policy q Subnational governments compete for capital, labor,
and economic activity
n Provides Regional Insurance q Geographic and economic diversity under a
nationalized government provides security blanket and insurance
Why did thirteen currencies…
become one common currency?
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Market Preserving Federalism The Economic Benefits of Federation.
n Federal Central Bank/National Bank Independence q National government possesses sole power to print and coin
money. q Fiscal discipline imposed upon state governments
n Common market/free market reduces barriers to flow of goods and labor q Local governments compete in federal marketplace. q Local governments can specialize and attract specific labor
n Larger market provides insurance and protection from regional recession.
The potential efficiency of the common market
Limited Economic Diversity
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Economic Insurance: Diversity of Economies
Federalism Promotes a Market-Place of Ideas
n Citizens in a federation are policy consumers.
n They express preferences not just by voting……
n …………………but also by moving.
n They “vote with their feet.”
Federalism Promotes a Market-Place of Ideas
n Subnational governments compete in part through differentiation in public policy. q Some governments provide high tax/high service
policies. q Some governments provide limited tax/limited
services.
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Federalism Promotes a Market-Place of Ideas
n Citizens are free to locate to regions that provide their preferred mix of government services and policies.
n Competition for tax revenue, capital, and labor promotes efficiency in policymaking. q Governments have market based incentives to
innovate in delivery of policy. q Underperforming governments face pressure to
adapt or lose out in the marketplace of ideas.
Drawbacks of Market Preserving/Fiscal Federalism n Tensions rise when when redistribution of wealth from
large/economically successful regions to smaller/depressed regions becomes a permanent feature of federalism.
n American states have limited mechanisms to recruits and attract labor.
n Competition for high value labor and capital may distort policy
State Dependency on Federal Aid
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State Dependency on Federal Aid.
Tax Dollar Winners and Losers of 2000
1. D.C. ($6.17) 2. North Dakota ($2.03) 3. New Mexico ($1.89) 4. Mississippi ($1.84) 5. Alaska ($1.82) 6. West Virginia ($1.74) 7. Montana ($1.64) 8. Alabama ($1.61) 9. South Dakota ($1.59) 10. Arkansas ($1.53)
1. New Jersey ($0.62) 2. Connecticut ($0.64) 3. New Hampshire ($0.68) 4. Nevada ($0.73) 5. Illinois ($0.77) 6. Minnesota ($0.77) 7. Colorado ($0.79) 8. Massachusetts ($0.79) 9. California ($0.81) 10. New York ($0.81)
States Getting the Least in Federal Spending Per dollar paid.
States Getting the Most in Federal Spending Per dollar paid.
Drawbacks of Marketplace of Ideas
n American states have limited powers to recruit immigrant labor or promote immigrant labor mobility. q States lack full powers to recruit immigrants to
meet local labor needs.
q Receiver states may bear disproportionate costs associated with immigration.
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Drawbacks of Marketplace of Ideas n “Race to the bottom”
n State governments have incentives to compete for workers that generate high tax revenue and limited demands for state services.
n State governments may avoid enacting policies that attract low income workers who depend on state welfare expenditures and services.
n Race to the bottom occurs when state governments reduce programs to avoid being magnet states for lower income workers.
Race to the Bottom?
Key takeaways:
n Federalism has economic and political advantages. q Creates common market q Encourages economic and political competition q Allows people to “vote with their feet.”
n There are some potential disadvantages q Permanent structural transfers of wealth between
regions q Competition produces a “race to the bottom.”
__MACOSX/._Market Preserving Federalism Handout.pdf
RoleCourtsFederalPowerHandout.pdf
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The Constitutional Framework: Federalism
Constitutional Origins and the Transformation of Federalism in the United States.
Themes of the Class
n Why and how has the national government grown so powerful since the founding?
n What was the role of the Courts in determining early powers of the Federal Government?
n How did early legal challenges establish the framework for the growth of federal power?
n How have implied powers been used to shape the nationalization of policy in the United States?
Expansion Federal Powers: The Role of the Courts
Federal Government asserts constitutional primacy.
n McCulloch V. Maryland (1819) q Establishes supremacy and elastic clauses q Implied powers granted as extensions of express powers in Constitution
n Gibbons v. Ogden (1824) q Establishes and strengthens commerce clause.
n These two come to be used to justify federal intervention in labor laws, interstate trade, etc.
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Establishing Implied Powers, Supremacy and Sovereignty: the National Bank
n Secretary of Treasury Alexander Hamilton argues for the creation of a National Bank of the United States to help the cash-strapped republic expand the money supply, extend credit, collect taxes, pay the nation’s debts, handle foreign exchange, and store government money.
n Those favoring limited federal power (such as Thomas Jefferson) object that a central bank falls outside the expressed powers in the Constitution.
Establishing Implied Powers, Supremacy and Sovereignty: the National Bank q Hamilton advances the doctrine of implied powers.
q The founders couldn’t imagine all future exigencies and actions that would that Congress would face in the execution of the powers specified in Article 1, Section 8.
q The Constitution not only provides for the enumerated powers, but also extends Congress implied powers through the "necessary and proper clause" which give Congress the authority to do what is necessary to execute the enumerated powers and responsibilities.
Establishing Implied Powers, Supremacy and Sovereignty
n McCulloch V. Maryland (1819) q Does Congress have the power charter a Bank of the United States? q Can state governments tax federal property?
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Establishing Implied Powers
Chief Justice John Marshall’s Decision:
q Doctrine of Implied Powers n The necessary and proper clause (Article I, Section 8), allows Congress “all
means which are appropriate” to fulfill “the legitimate ends” of the Constitution.
n Creation of the bank is appropriate, as it is necessary in order for the federal government to carry out several enumerated powers– such as such as regulating interstate commerce, collecting taxes, and borrowing money.
n The Constitution provides for a more expansive government, as Congress and
the Federal Government have implied powers that flow from the enumerated powers.
Establishing Federal Supremacy
Chief Justice John Marshall’s Decision: q Supremacy Clause: q “ “the government of the Union, though limited in its powers, is
supreme within its sphere of action, and its laws, when made in pursuance of the constitution, form the supreme law of the land."
q Because the power to tax involves the power to destroy” Maryland was unconstitutionally undermining the superior laws and institutions of the United States.
Establishing National Sovereignty Chief Justice John Marshall’s Decision:
q Sovereignty rests in the People of the United States of America, not the states.
q "the government of the Union is a government of the people; it emanates from them; its powers are granted by them; and are to be exercised directly on them, and for their benefit.”
q Maryland’s tax violated constitutional sovereignty because it imposed a tax on the people in the United States by a state accountable to only some of the people.
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Nationalizing the Commerce Clause
n Gibbons v. Ogden (1824) q Can the state of New York issue exclusive licenses/monopoly for
ferry service between states?
q Does Congress have the power to regulate interstate commerce?
q Does Congress have the power to regulate commerce that is not wholly contained within a single state?
Nationalizing the Commerce Clause
n Congress has the sole and appropriate power to regulate interstate commerce.
n This power applies broadly. q Congress can regulate trade among the many states. q Congress can also regulate trade that is intermingled with the
states, so long as there is an interstate dimension to the regulation of commerce.
Implied powers, the commerce clause, and the expansion of federal power Congress has drawn upon implied powers to dramatically expand the reach of the Federal government
q Creation of the IRS (implied) q Creation of the Air Force (implied) q Nationalization of the Minimum Wage (interstate commerce) q Banning workplace discrimination and harassment (interstate
commerce) q Regulation of Health Care through ACA (implied and interstate
commerce).
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Looking forward: Expansion of Federal Power n Expansion of Federal power was gradual through much of history.
q The vision of Dual Federalism maintained a clear division of powers between the Federal and state governments.
n Expansion of federalism is driven by different philosophies governing the federal state relationship over time. q Post Depression era vision of Cooperative Federalism and Regulated
Federalism drive massive expansion of national government’s influence over state policy.
n Tension over Federal and state power persist today. q Vision of New Federalism and Devolution aim to return autonomy to state
governments.
Looking forward: The Role of the Courts in the Nationalization of Civil Liberties and Civil Rights
n The tension between minority rights, state politics, and the Constitution.
n The roll of Congress and the Courts in the nationalization of the Bill of Rights.
n The growth of federal power in protecting individual rights and freedoms.
__MACOSX/._RoleCourtsFederalPowerHandout.pdf
TheConstitutionalFrameworkofFederalismHandout.pdf
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The Constitutional Framework: Federalism
Constitutional Origins and the Transformation of Federalism in the United States.
Organizing Questions for the Class
n How does the framework of Federalism in the Constitution create a stronger national government while simultaneously preserving the sovereignty of the states and the freedoms of the people?
q National Powers (Express Powers/Implied Powers) q State Powers (Reserved powers to states and individuals) q Shared National/State Powers (Concurrent Powers)
The Constitutional Principle of Federalism
n How to create a stronger national government that doesn't overawe local concerns?
n Federalists at constitutional convention insisted that the Constitution invest powers that q Strengthen national government. q ….but offset federal power by reserving significant powers to the
states.
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What is Federalism?
A system of government in which sovereignty is divided between central governments and states.
Practiced widely in the modern era (USA, Australia, Brazil, Argentina, Canada, India, Germany, the European Union, Switzerland, etc.)
n Federalism: q Grants states independent governments and a degree of policy
autonomy.
q Provides for proportional and geographic representation in national government.
Constitution: National (Federal) Government Powers n Empowered National Government
q Establishes Express or Enumerated Powers of the US Congress (Article 1, Section 8 of the Constitution).
q Elastic or the “Necessary and Proper Clause” Invests Congress with Implied Powers to Enact Legislation Necessary for Duty
q The Supremacy Clause promotes national unity by declaring that “National laws and treaties are the “supreme laws of the land.”
q Supreme Court Vested with duty to review conflicts between the states, the states and the Federal Government, or between agencies within government
Exclusive Powers Reserved for National Government n Coin Money n Regulate Interstate and Foreign Commerce n Tax Imports and Exports n Make Treaties n Make all laws to fulfill national responsibility n Make War n Regulate Postal System
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Powers Denied to National Government n Tax State Exports n Change State Boundaries n Impose Religious Tests n Pass Legislation or Act in Conflict with Bill of Rights
n The 10th Amendment: q The powers not delegated to the United States by the Constitution,
nor prohibited by it to the States, are reserved to the States respectively, or to the people.
Powers Denied to National Government The 10th Amendment:
q The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
Powers Denied to National Government The 10th Amendment:
q Example: Murphy v. National Collegiate Athletic Association n In 1992 Congress passed the Professional and Amateur Sports Protection Act.
q Allowed NV, OR, DE, and MT to maintain Sports Gambling q Required all other states to ban it.
n 2018 decision decided this violated the commandeering clause 10th Amendment of the U.S. Constitution
n “PASPA’s provision prohibiting state ‘licens[ing]’ of sports gambling schemes violates the anticommandeering rule. It issues a direct order to the state legislature . . . [and] unequivocally dictates what a state legislature may and may not do.”
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State Government Powers
Reserved Powers and the Tenth Amendment q Reserved Powers preserves powers not explicitly granted to federal
government to the states q States Control Authority and Power of Coercion to define and
Enforce Criminal, Moral and Social Values q Police Powers to regulate health, safety and welfare of citizens q Powers to regulate family q Powers to regulate individual livelihoods q Powers to define and enforce property laws
State Obligations
n Full Faith and Credit Clause q States must honor the “Public Acts, Records and Judicial
Proceedings of Other States” n Privileges and Immunities or Comity Clause
q Reciprocity between States must be honored. q Special benefits or costs cannot be conferred on residents of the
States
Examples of State Powers
n Run Elections n Regulate Intrastate Commerce n Establish Republican Governments and Home Rule n Protect Public Safety and Morals n All powers not expressly delegated to national government
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Shared or Concurrent Powers
Powers given jointly to National and State governments n Taxation n Licensing n Chartering n Borrow Money n Take Property (Eminent Domain) n Enforce Laws and Administer a Judiciary
Looking forward
n Given the efforts to limit the enumerated powers of the Federal Government and reserve power to the states in the constitution…. q Why and how did the national government of the United States
assert so much power? q How did the Constitutional guarantees of individual rights and
freedoms lead to conflict between the Federal government and the states?
q What are the ways the federal can attempt to influence state policymaking?
__MACOSX/._TheConstitutionalFrameworkofFederalismHandout.pdf
VisionsofFederalPowerHandout.pdf
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The Constitutional Framework: Federalism
Constitutional Origins and the Transformation of Federalism in the United States.
Themes of the Class
n Why and how has the national government grown so powerful since the founding
q The Vision of Dual Federalism n Clear division of policy authority between levels of government.
q The Growth of National Power n Cooperative Federalism, Regulated Federalism
q The Return of “States Rights?” n New Federalism and the Devolution of Powers.
American Federalism: Nationalization of Authority Madison proposed a limited national government and strong
sovereign states:
“The powers delegated by the proposed constitution are few and well defined. Those which are to remain to the State governments are numerous and indefinite.”
Jam es M adison, Federalist 45.
If this was the initial vision…. Then why has the Federal government achieved so much power?
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Early American Federalism: Dual Federalism n Federal and state power is limited to separate and distinct spheres of
authority.
n Referred to as layer cake federalism, where each layer represents a different level of government and the powers, responsibilities, and resources of each layer remain separate and distinct from the others.
Dual Federalism and Nationalization of Policy q State governments periodically resist efforts of the federal
government impose national policy over state governments.
q Periodic tensions as state governments push for powers of nullification– the power to overturn federal laws that they view as violating the Constitution of the federal or state government.
Dual Federalism and Nationalization of Policy n Dual federalism is challenged by industrial revolution and
growing power of firms. q State governments provide inadequate protection for workers and
struggle to protect fair and free markets against monopolization. n Federal government asserts power to centralize the regulation
of industry. q Enact the Sherman Antitrust Act (1890), q and the Interstate Commerce Commission Act (1887)
n Example of Congress expanding power to resolve problems of collective action between the states.
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Towards Cooperative Federalism
n Although decentralized power was clearly intended by the framers, national government gradually exerted control over national policy
q Reasons: n Solve problem s of collective action and coordination over national policy concerns
q Cooperate with states in the development and delivery of social programs q Standardize policy in response to Congressional consensus
n Constitutional Tools of Federal Government q Power of the Purse q Supremacy Clause q Expressed and Implied Powers
Nationalization of American Federalism: Cooperative Federalism:
q Supportive relationship/partnership between the federal and state governments.
q Marble Cake Federalism: Levels of government blended together as the federal government subsidizes state and local governments and collaborates in the funding, delivery and administration of policy.
q Example: The New Deal Social Security Act, q Establish permanent government aid to the blind, to dependent children,
and to the elderly. q Dictated to states how federal money could be used and which state
agencies were able to distribute it. Provides terms for federal/state collaboration in finding programs
Nationalization of American Federalism: Cooperative Federalism:
n Cooperative federalism provides new tools for the federal government nationalize policy.
n Allows federal government to use incentives to encourage states to enact new policy programs.
q Inducements (Carrots). n Grants in Aid/Categorical Grants in Aid n Formula Grants/Project Grants
q Examples n Head Start n Medicaid
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The Growth of National Government
Cooperative Federalism and the Growth of Government
Popularity of Federal/State programs.
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Nationalization of American Federalism Regulated Federalism n Federal Government seeks uniformity in policy through grants and
mandates. q Imposes legislation and requires local governments to meet national standards. q Compels Policy Conformity Through Control of Courts, Funding, and Legislation.
q Example: The Clean Air Act (CAA) of 1970 n Authorizes the U.S. Environmental Protection Agency (EPA) to establish
National Quality Standards to protect public health and the environment. n Requires state governments develop implementation plans outlining emission
reduction strategies.
Regulated Federalism and the Centralization of Authority n Regulated federalism provides more coercive tools for the
federal government nationalize policy. q Allows federal government to impose mandates and threaten sanctions
unless states to enact new policy programs. n Sanctions (Sticks) to Ensure Compliance
n Unfunded Mandates n Crossover Sanctions n Direct Orders
n Examples: q Drinking ages q and DUI laws
Towards Decentralization? New Federalism and Devolution.
n New Federalism seeks devolution, or the transfer of certain powers from federal government back to the states.
q Provide state governments more autonomy and local control over policy.
q Allow for more policy variability and experimentation giving states greater discretion in implementing state/federal partnerships.
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Towards Decentralization? New Federalism and Devolution.
n New federalism provides tools to allow state governments more flexibility
and discretion in implementing federal policy.
n Tools of New Federalism q Revenue Sharing
q Block Grants
n Example: Welfare Reform Act of 1996 q Returned to the states primary responsibility for establishing rules under which
impoverished households could receive cash assistance.
q Provided a block grant to the states called Temporary Assistance for Needy Families
(TANF).
q In exchange for receiving this grant of fixed funding, states were afforded a great deal
of flexibility to design their own welfare reform strategies.
TANF Block Grants & State Welfare
TANF Block Grants & State Welfare
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Limits/Concerns over New Federalism.
n States may divert funds to fill gap in other budgetary areas n States may use flexibility to reduce benefits for families in
need. n State policy experimentation may not improve welfare for the
poor. n Reduce efficacy of overall safety net in American federalism.
Take Away Points: Federalism Has Evolved n American history has seen the Federal government assert a
large role in centralizing authority.
n Federalism Continues to permit a degree of local autonomy while solving for collective action problems at the national level.
n Federal Philosophy of Government has Shifted q Policy harmony can be encouraged by centralization q Innovation and Independence by decentralization
Looking forward:
n The theoretical strengths and weaknesses of federalism
q Market preserving/fiscal federalism q Nation preserving federalism q Federalism as a Marketplace of Ideas.
