Federal vs. Unitary Government

Federal System

• Dual sovereignty: federal government and state government
• Example: USA
  • States have sovereignty in their own spheres
  • Federal government cannot override state laws within their authority

Unitary System

• National government has sole sovereignty
• Example: France
  • Provinces' decisions can be overridden by the national government

US Constitution and Federalism

Articles of Confederation

• First US constitution
• Established a national government dependent on states
• Lack of power to tax, regulate commerce
• Confederacy: States had the final authority

US Constitution

• Replaced Articles to create a strong federal government
• Balance state and national powers
• Created a federal system with divided sovereignty

Key Clauses

1. Necessary and Proper Clause
   • Broad grant of power to national government
   • Example: Establishment of national bank
2. Commerce Clause
   • Congress regulates interstate commerce
   • Expanded federal powers during Great Depression
3. Taxing and Spending Clause
   • Tax and spend for general welfare
   • Broad interpretation allows for influence in state matters

Federalism in Practice

Supreme Court Cases

• McCulloch v. Maryland
  • Established implied powers
  • Federal supremacy over state attempts to tax federal entities
• 1930s New Deal
  • Great Depression led to broad federal economic intervention
  • Supreme Court expanded commerce powers
• Affordable Care Act (2010)
  • Initially challenged under Commerce Clause
  • Upheld under Taxing Power

Shifts in Power

• Power has generally shifted towards the federal government
• Federalism changes influenced by public opinion and needs
  • New Deal: Response to economic crisis
  • Great Society: Expansion into health care, welfare
  • Reagan and Republican Efforts: Rollback federal interventions

Federal Grants and Fiscal Federalism

Federal Grants

• Cash payments to states, localities for specific programs
• Categorical Grants: Specific purposes
  • Example: School construction
• Block Grants: General policy areas
  • States have more discretion

Impact on State Authority

• Grants have conditions that limit state choices
• Aid aids in the provision of services beyond state capabilities

Conclusion

• Federalism involves complex interactions between state and national governments
• National government has expanded its reach over time
• Cooperation and conflict shape the federal system's evolution
• Public opinion has been a driving force in power dynamics
• The US remains unique in its federal structure, contrasting with unitary systems like France's.