3.5 Advantages and Disadvantages of Federalism

Learning Objectives

By the end of this section, you will be able to:

• Discuss the advantages of federalism

• Explain the disadvantages of federalism

The federal design of our Constitution has had a profound effect on U.S. politics. Several positive and negative attributes of federalism have manifested themselves in the U.S. political system.

THE BENEFITS OF FEDERALISM

Among the merits of federalism:

• Promotes Policy Innovation: Supreme Court Justice Louis Brandeis observed in 1932 that “a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” States can utilize their constitutional authority to pioneer policy innovations that might later be adopted by other states or at the national level. For example:

  • New Deal breakthroughs like child labor laws were inspired by state policies.

  • Several states granted women the right to vote before the Nineteenth Amendment was passed.

  • California has led efforts in establishing fuel emission standards.

• Encourages Political Participation: Federalism creates two levels of government, allowing citizens and groups to engage actively in shaping public policy. If a policy goal is not achieved at one level, individuals can seek redress at another level.

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Federalism and Political Office

• There are approximately 510,682 elected offices at federal, state, and local levels, with over half the total number in municipal and township governments.

• Political careers often begin at local or state levels rather than national.

• Trust Trends: In 2018, 35% of U.S. adults trusted Congress while 63% trusted their state governments and 72% had confidence in local governments.

• Diverse Policy Approaches: States handle issues like abortion, alcohol distribution, gun control, and welfare differently based on local needs and values.

THE DRAWBACKS OF FEDERALISM

While federalism offers advantages, it comes with drawbacks:

• Economic Disparities: Economic differences across states affect overall well-being. For instance, Maryland had the highest median household income in 2017 ($80,776) compared to West Virginia’s lowest ($43,469). Additionally, New York spent $22,366 per student on education while Utah spent only $6,953.

• Race-to-the-Bottom Dynamics: States may compete to attract businesses by lowering taxes and regulations, which can lead to diminished workplace safety and underfunded public services.

  • Example: Twelve states opted not to expand Medicaid under the Affordable Care Act due to perceived cost concerns.

• Inability to Address National Issues: The system of checks and balances can obstruct essential national policy-making. For instance:

  • President Roosevelt’s New Deal faced Supreme Court challenges; similarly, President Obama’s Affordable Care Act met resistance from some states.

  • In 2013, the Supreme Court struck down a provision of the Voting Rights Act, weakening federal oversight of state voting laws, which has led to stricter voting regulations in several states, affecting access to the polls.