1. Two views of federalism develop: states rights position: favors state and local governments Nationalist position: favors national action in dealing with these matters

2. STATES RIGHTS POSITION Constitution is a compact among the states Any doubt about whether or not a power belongs to the national government or states should be settled in favor of the states State governments are closer to the people and better reflect their wishes than the national government

3. THE NATIONALIST POSITION Rejects the idea of the Constitution as merely a compact among the states The national government is not subordinate to the states The reserved powers of the states should not limit how the national government can use its own powers

4. Growth of National Government Size and power of national government has grown at the expense of the states Reasons – Supreme Court, President, and Congress has stretched powers to meet needs of growing industrial nation. 1) War powers, 2)Power to Regulate interstate commerce 3) the power to tax and spend

5. WAR POWERS The condition of the economy and the education system have an impact on military capabilities

6. INTERSTATE COMMERCE Term commerce has been interpreted as anything dealing with buying, selling, transporting goods

7. POWER TO TAX Having the power to tax income has increased the power of the national government in terms of its financial resources 1.Taxes can be used to regulate businesses 2.Congress uses taxes to influence states to adopt certain kinds of programs

8. Federal Aid to States To influence the policies of states, the federal government can provide money through federal grants Examples: grants to improve roads, bridges, land for colleges, airports

9. PREEMPTION LAWS Power to assume responsibility for state function, in order to gain authority over a state This is done through restraints a requirement set by Congress that prohibits a local or state government from exercising a certain power and mandates.