Health Care Reform act- Tax penalties to individuals who dont have health care

Republican: unconstitutional!!!

Ruling- 5-4. Congress act is reasonable

Federalism: National and State Sovereignty

Articles of Confederation

Union of state that has power over people

The national government cant tax or regulate economic activities

People identify stronger with their states

Sovereignty has been regarded as indivisible.

Federalism- unprecedented

Unitary system

Confederacy: sovereign states decide the authority+ existence of le

national government

Federal system(1787~)
National Powers
Concurrent powers
State powers
National defense
Lend and borrow
Charter local
Currency
money
governments
Post office
Taxation
Education
Foreign affairs
Law enforcement
Public safety
Interstate commerce Charter banks
Registration and
Transportation
voting
Intrastate commerce

The argument for federalism

National government can tax and regulate interstate

commerce

The government cant raise a sufficient army and navy

to protect American merchant ships when it aint got no
mula

Can now promote the economy and prevent interstate

trade wars

The government under the AOC was too weak, there were
public disorder, economic chaos, and inadequate defense

Protecting liberty

Theorists believe that the division f power between

national and state governments is a part of checks and
balances and will protect individual liberties

Moderating the power of government

Anti- Federalists

Sacrificing states power is unwise and unnecessary

Distant federal government will not serve the

peoples interest

States will better protect liberty and selfgovernment

Montesquieu- small republics will better serve

the peoples interest

Madison- dominant factions will control the

government and use it for selfish purposes. A

large republic is less likely to have an allpowerful faction. Groups would have to share in
the exercised power
The power of nation and the state

Enumerated and implied powers- Authority that is not

granted to the national government is left or reserved to the
states. States have reserved power

Enumerated (expressed) clause

Supremacy clause

Necessary and proper clause (elastic clause) - gives

congress the power to make laws necessary for carrying into
execution the foregoing powers. Gives the national government
implied powers.

States power= reserved power(the power not given to the

national government in the US constitution)
Federalism in historical perspectives

The constitution is ambiguous

The line between Interstate and Intrastate commerce

Federalism in historical perspectives

Creates two centers of power

Ambiguities in the constitution contribute to conflicts between

the nation and the states

The dividing line between interstate and intrastate

commerce

An Indestructible Union (1789-1865)

McCulloch v. Maryland

Alex: Rights to regulate currency implies power to

establish national bank

Jefferson: unlawful b/c not expressly authorized by the

constitution.

Congress: Alex! 1791 First bank of America with a 20

years charter

1816-Second Bank of America

Local and state banks dont want competition

> States imposed taxes on national banks operations

McCulloch refused to pay Maryland tax

Supreme court: a national government with the power to
tax, borrow money and regulate commerce could
establish a bank in order to exercise those powers
effectively
Maryland: but but but states have the power to tax it
then
Supreme Court: national government have th power to
create the bank, it can also protect the bank from state
actions that might destroy it.

Dred Scott decision

Calhoun: state has the constitutional rights to nullify a

national law.

South Carolina declared a national tariff law

incompetent and null

Andrew Jackson the action is incompatible with the

Union

Congress gave Jackson authority to take military action

Compromise- the law was amended to soften its impact

on the south

Le decision invalidated the Missouri Compromise which

illegalized slavery in the North because slaves were
properties not popele. According to the constitution
congress cannot interfere with owners properties.
Dual Federalism

Precise separation of national and state government was both

possible and desirable

Which level regulates bidness?

Should the national government intervene to protect African

Americas?

Dual federalism became a barrier to an effective response to

these issues

The Fourteen amendment and state discretion

Supreme court: the amendment didnt substantially limit the

power o state to determine their residents rights

Plessy V. Ferguson

Separate but equal

Judicial protection of Bussiness

Laissez- faire.

1886 Corporate as persons within the meaning of the fourteen

amendment

The feds invoked the Sherman Antitrust Act(1890) to break

down a monopoly sugar manufacturers. Supreme Court blocked
the Action claiming interstate commerce covered only the
transportation of goods. Manufaturing is an intrastate affair.
States regulatory powers are also limited cuz of 14th

Hammer v. Dagenhart: invalidated a federal act that prohibited

interstate shipmen of goods produced by child labor. Tenth
amendment gave states the power to regulate factoru practices,
but in Lockner v. NY, states cant regulate labor practices
because it violates owners property rights
Contemporary Federalism (since 1937)
Interpendency and intergovernmental relations

Interdependecy caused national authrotiy to increase drastically

Cooperative Federalism- shared political responsibilities- Mediaid

1965

Jointly founded by the national and state government

Jointly administered

Jointly determined

Dual Federalism

Delegated power to the federal government and reserved

government ot the states
Layer Cake Federalism

Federalism characterized by a national government

exercising its power independently from state governments.
Constitutionally based, and each level of government tired
to expand its sphere of influence
Marble Cake Federalism (New Deal)

Feederal relief and recovery programs ex. Agricultural

Adjustment Act, National Recovery Act, Federal Deposit
Insurance Corporation.

States and Feds share public policy

Fed fund and state implement.

The AAA was declared unconstitutional in the Supreme

Court
Creative Federalism

Greater reliance on federal programs (Medicare, Medicaid,

War on Poverty

Fostered further cooperation among levels of gov

Components

Sharing costs for programs initially under the purview of

state control

Guidelines and rules set by the federal government

Provide for dual administration programs

Competitive federalism (Richard Nixon)

Offer state pieces of the marble cake with conditionalities

Equal opportunity act of 1982

Place restriction on a some programs as punishment for

other ones

Crossover requirements- do something for money

Emergency Highway Energy Conservation- set speed

limit of 55 mph for highway repair money
Fiscal federalism

States receive money that they otherwise wouldnt get. The

feds achieve national foals, they can direct where money
oes and earmark it to poor states. The creation of programs
without massive bureaucracies.

The development of federalism since the new deal has been

fiscal in nature

Categorical Grant

Federal aid that meets the criteria of a specific category

and has specific criteria attached to them

Project and formula grant

Project Grants: competitive application by states

and individuals

Formula grants: Specific formulas developed by

congress

Block Grants

Form of federal aid with far fewer stings attached

Welfare reform under the Clinton Administration

Revenue Sharing

Gives money to states with no strings attached.

Public opinion shapes federalism