FEDERALISM:
A. FEDERAL SYSTEM:
SYSTEM OF GOVERNMENT IN WHICH POWER IS DIVIDED, BY CONSTITUTION, BETWEEN A CENTRAL GOVERNMENT AND REGIONAL OR SUB-NATIONAL GOVERNMENTS.
**POWERS MUST BE SPECIFIED IN THE CONSTITUTION

B. UNITARY SYSTEM

ALL POWERS VESTED IN NATIONAL GOVT.

C. CONFEDERAL SYSTEM 1. NATIONAL GOVT. OPERATES AT DIRECTION OF SUB-NATIONAL GOVTs.
2. US UNDER ARTICLES
 
 
ADVANTAGES & DISADVANTAGES

a. ADVANTAGES

1. DECISION-MAKING - DECENTRALIZED
2. CLOSENESS - KEEPS GOVT. CLOSER TO THE PEOPLE
3. EXPERIMENTATION - IDEAS EXPERIMENTED AT STATE AND LOCAL LEVEL
4. LOCAL INTERESTS REFLECTED - POLITICAL AND CULTURAL INTERESTS OF REGIONAL GROUPS REFLECTED IN LAWS
b. DISADVANTAGES 1. LOCAL RULES MAY NOT BE IN NATIONAL INTEREST
2. NATIONAL PLANS MAY BE BLOCKED BY LOCAL INTERESTS
3. NATIONAL POWERS MAY BE EXPANDED AT EXPENSE OF STATES
4. POLICY COORDINATION - HARD TO COORDINATE POLICIES.
5. STATE LAWS NOT UNIFORM - MAY COMPLICATE BUSINESS TRANSACTIONS i.e I.e. Congress: 2. NECESSARY AND PROPER CLAUSE: 3. INHERENT POWERS: 4. PROHIBITED POWERS (NATIONAL): 5. POWERS OF STATES: 6. PROHIBITED POWERS (STATES): 1. STATE CAN'T TAX GOODS PASSING THROUGH
2. NO TREATIES WITH OTHER COUNTRIES
7. CONCURRENT POWERS:
1. STATES CAN NOT IMPOSE TARIFFS (TAXES ON IMPORTED GOODS)
2. FEDS CANT TAX REAL ESTATE (TANGIBLE PROPERTY)
8. SUPREMACY CLAUSE: NATIONAL GOVERNMENT WAS ENCROACHING ON STATE POWERS (SUPREME COURT DECISIONS).

A. McCULLOCH v. MARYLAND
ISSUE WAS MORE THAN TAXES (McCULLOCH WAS ORDERED TO PAY THE TAXES)
KEY ISSUES:

1. DID CONGRESS HAVE THE AUTHORITY TO CHARTER AND CONTRIBUTE CAPITAL TO THE BANK?
NECESSARY AND PROPER CLOSE
2. IF BANK WAS UNCONSTITUTIONAL, COULD THE STATE TAX IT?
3. THUS WAS A STATE ACTION IN CONFLICT WITH FED ACTION INVALID UNDER THE SUPREMACY CLAUSE?
 
BUT THERE WAS NO PROVISION IN THE CONSTITUTION GRANTING FEDS EXPRESSED POWER TO CREATE A BANK??!!
"NECESSARY AND PROPER CLAUSE"
CREATION OF THE BANK HELPS FED EXERCISE ITS EXPRESSED POWERS
- THUS IT WAS IMPLIED IN THE CONSTITUTION (Chief justice Marshall Doctrine).
 

B. GIBBONS v. OGDEN:
KEY ISSUES:
1. COMMERCE CLAUSE - FRAMERS NEVER DEFINED COMMERCE!
2. POWER TO REGULATE INTRA OR INTER STATE COMMERCE?
3. NATIONAL GOVERNMENT HAS EXCLUSIVE POWER TO REGULATE INTERSTATE COMMERCE (Marshall)

 
 
DUAL FEDERALISM:
STATES AND NATIONAL GOVERNMENT MORE OR LESS EQUALS
DISTINCT FUNCTIONS AND RESPONSIBILITIES   COOPERATIVE FEDERALISM vs. The Supreme Court:
NEW FEDERALISM - (Check textbook! - READ THE BOOK!)
FEDERAL PREEMPTION OF STATE POWERS - since 1940s
ROOTED IN SUPREMACY CLAUSE - NATIONAL LAWS TAKE PRECEDENCE   FISCAL SIDE OF FEDERALISM Mandates
Grants
Categorical grants
Block Grants