3: federalism

Federalism and the US constitution

  • Federalism – area is controlled by 2 or more govs with one gove subordinate to the other
      * National fed gov
      * State gov – local govs are part and subordinate to state
  • 2 types of federalism
      * Vertical federalism – relationship between states and federal government (subordinate to superior)
      * horizontal federalism – relationship between states (between equals)
  • Opposite of federal system is unitary system – one sole gov, extensions can be squashed any time
  • Constitution feared to take away individual freedoms and liberties
      * Supremacy clause – if its fed law vs state law, fed wins
      * Commerce clause – framework by which fed gov expanded power
      * McCulloch v Maryland – Necessary and Proper Clause can be used to give national gov leeway in using limited powers
  • Tenth Amendment
      * Any power not for the nat gov or state is for the people
      * Those more for power to states go with dual federalism – areas of gov are separate from each other; only states can make rules in specific areas
      * Those for a fed gov went with shared federalism there is no separate sovereignty; fed gov and states should work together on problems (usually wins in arguments) → increased fed power
  • State interest also protected by 17th Amendment – senators come from popular election
      * May have contributed to growing federal power bc senators didn’t need to pay attention to what state legislatures wanted them to do

Historical evolution of federalism

19th century

  • Fed power grew stronger than states after great depression and WWII
  • 19th century, states tightly guarded their power
      * 1828, 1832 fed gov put high taxes on imports and exports, but South Carolina said it wouldn’t apply to their states–nullification–bc it hurts their crop exports
      * Biggest issue was on slavery
  • Missouri Compromise of 1820–Missouri as slave state, Maine as free state, set line for slave and free states
      * Compromise collapsed mid-19th century in Dred Scott v Sanford 1857
  • Dred Scott v. Sanford – Supreme Court declared Compromise unconstitutional, said Black ppl can’t be US citizens = can’t go to court for their freedom (Scott was black)
      * Bad decision → started Civil War bc politicians couldn’t compromise
  • Civil War – fed gov won, became stronger and states weaker
      * To win fed gov expanded fed activity–bigger militia, Dept of Agriculture made to help farmers
        * Increased non-postal fed employees
      * Civil War Amendments (13-15): 14th amendment most important
        * Gave power to Congress to do whatever to make states comply with law
  • Industrialization led to US becoming a national market
      * Fed gov regulates commerce between states thru Commerce Clause

20th century

  • 10/29/1929 – Blackout Tuesday, start of Great Depression
  • Prez Herbert Hoover reluctant to help bc thought nat gov shouldn’t override regulations of the state
      * Didn’t work bc in a national economy states can’t help themselves
  • FDR elected, started aggressive federal relief program aka New Deal to regulate interstate commerce under Commerce Clause
  • WWII 1941 – alleviated economic issues
      * Production needs caused huge increase in employment
      * More production → employers compete for workers → higher wages
  • After Depression and WWII, ppl used to fed gov solving problems against the nation
      * Turn to more racial problems – gov used it to expand powers
  • Intervention powers weakened late 1970s-early 1980s bc of neoliberalism
      * Neoliberalism power of free market, eliminate gov intervention in economy

Federalism and the Prisoner’s Dilemma

  • Prisoner’s dilemma – 2 prisoners, same choice: cooperate and get shorter sentence or stay silent and get higher sentence
      * If both stay silent, both go free
      * State = prisoner (ex. In child labor laws)
        * Both wants to end child labor but if only one ends then other that kept it will have cheaper labor costs
  • Fed gov imposed uniform policy, stopped race to the bottom (states stuck with suboptimal policies )
      * Other ex: tax breaks to companies moving cities

Fiscal Federalism

  • Devolution – transfer of power from higher to lower levels (fed gov to state)
      * Started under Nixon, accelerated by Reagan thru fiscal (revenue, taxes) means by giving states more freedom on spending
      * fiscal federalism – fed gov encourages states to cooperate with fed policies by paying for policy
        * Give money with few strings attached

Block grants

  • Block grants – fed grant goes directly to county/city instead of state
  • Receiving end is in charge of administering program
  • BUT fed gov can’t control how money is spent once it’s set aside for that purpose
      * Ex. Mental Health Block Grant – allocates money to state to fund treatment but standards of program decided by local councils

Matching Grants

  • Matching grants – fed gov matches amount spent by state on a particular program
      * Ex. medicaid: matches state spending at 2:1 ratio
      * Incentivizes state to increase spending bc it gets free money (state spends $50 million but gets $100 million)
  • Matching grants help stop race-to-the-bottom
      * Ex. state focuses on healthcare for poor, poor migrate to that state and increase amt the state needs to spend to support more resident
      * Matching grant and incentivizing spending – fed gov can set floor on how much healthcare is available
        * More spent in poor states than rich
  • Modern federalism operation – gov sets policy parameters and pays for program → state or local employees administer daily
      * Local workforce growing quickly

Current Federalism Issues

Immigration

  • Fed gov has authority to set immigration policy for the nation
      * States have some room to make policies where fed gov didn't
  • States want to regulate immigration bc…
      * Immigrant families have more kids = education = money
  • States with more immigration have special incentives to regulate immigration separate from national policy
      * Immigrant adults pay more in fed tax than received in benefits
      * Kids of immigrants pay more in tax too
  • Arizona tried to aggresively pursue undocumented immigrabts
      * Make life uncomfortable enough to make them move
      * Laws:
        * Tried to make it a state crime to not have fed immigration docu
        * Crime to apply for work in state if undoc
        * Require law enforcement to check immigration status if they were already stopped for another violation
  • Arizona v US – Supreme Court said no to first two laws, kept 3rd
      * Enforcing immigration law implicated foreign policy concerns
      * Only fed gov has power over immigration
        * Fed gov didn’t make it a crime to not have doc so Arizona can’t
        * 3rd law kept bc it only supports already-existing law
  • Sanctity cities – won’t allow local law enforcement to help fed gov enforce federal immigration law (Boston, Chicago, NY, SF, Colorado, New Mexico)
      * Republicans try to punish: trump administration tried to punish by stopping all fed funding
        * Fed judges saw this as unconstitutional bc most of $ had nothing to do with immigration

Public health

  • COVID-19 pandemic – Trump administration left it to gov to set disease policies
      * Decentralized response to virus
      * Disputes b/w local officials and state leaders
  • Densely populated cities – strict mandates
      * More likely to be democrats
  • Less populated – less strict

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