Advantages and Disadvantages of Federalism

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By Bikram, Vinay and Jessen
Democracy requires that a good amount of people
should participate in public concerns and be governed
by representatives chosen from and accountable to
the local community.
 People enjoy a sense of personal safety and security
when they are governed by representatives drawn from
their own community, who share their values and
customs.
 If the United States were a unitary system of
government it would be impossible for many Americans
to take any part in public affairs and it would be difficult
for public officials to understand local needs.
 So a federal structure provides means for representative
democracy to operate in both regional (State) and
national affairs. For this reason, federalism is an
important feature of political liberty
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Makes it difficult for an unjust dictator or
extreme political party to seize power
nationally and rule the whole country
 With a federal political structure, State
leaders can resist political revolutions
through political means or perhaps through
State militia .
 To gain dictatorial control over Germany in
the 1930s, Adolf Hitler had first to destroy the
federal structure of the Weimar Republic.
Totalitarianism cannot succeed where
federalism thrives.
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Federalism allows States to undertake reforms
and experiments in political, economic, and
social concerns without involving the whole
country and all its resources in some project
that may turn out unsatisfactorily – policy
laboratories.
In America today, one State can plan some
particular educational reform, another State
can take a different approach to improving
schools; and results can be compared and
discussed.
In a unitary political structure, no place exists
for innovation or experiment.
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Example: California has frequently led
the nation in environmental regulations:
Many measures adopted by California
are subsequently adopted by other
states. And during the 1990s, Wisconsin
governor Tommy Thompson
experimented with welfare policy, and
those experiments influenced federal
welfare reform.
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Local Representation
Federalism offers representation to different populations.
Citizens may have different aspirations, ethnicity and follow
different cultures.
The central government can sometimes overlook these
differences and adopt policies which cater to the majority.
This is where the regional government steps in. While
formulating policies, local needs, tastes and opinions are
given due consideration by the state governments.
Rights of the minorities are protected too.
Example in states like Arizona where there is a large Hispanic
population and therefore, a large number of schools provide
bilingual education.
Prevents the creation of a national policy: The
United States does not have a single policy on
issues; instead which often leads to confusion.
 Leads to a lack of accountability: The overlap of
the boundaries among national and state
governments makes it tricky to assign blame for
failed policies.
 Example when Hurricane Katrina hit Greater New
Orleans, USA, in 2005, there was delay in the
rescue work, as there was confusion between
the state governments and the federal
government on who is responsible for which
disaster management work. This resulted in the
loss of many lives.
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Promotes Regionalism
 It can make state governments selfish and
concerned only about their own region's
progress.
 They can formulate policies which might be
detrimental to other regions.
 Pollution from a State which is promoting
industrialization can affect another region
which depends solely on agriculture and
cause crop damage.
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Law in federalism
 The Constitution lists the legislative powers of the federal government.
 The 10th Amendment protects the residual powers of the states.
Legal advantages of federalism
 Uniform immigration laws so easy for everyone to understand.
Legal disadvantages of federalism
 Supreme Court seen as tilting towards states rights.
 The Supreme Court's University of Alabama v. Garrett (2001) and Kimel v.
Florida Board of Regents (2000) decisions allowed states to use a rational
basis review for discrimination against the aged and disabled, arguing that
these types of discrimination were rationally related to a legitimate state
interest, and that no "razorlike precision" was needed.“
 This shows how much legal power states have.
Economic advantages of Federalism
The New Deal
 Following the devastating effects of the Wall Street Crash and the Great
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Depression, the period from the 1930s to the 1960s saw a significant
increase in the power and scope of the federal government
Feds made increasing use of categorical grants.
The New Deal was a whole raft of federal government schemes to
promote employment, agriculture, industrial expansion
One of the most striking benefits of the New Deal was that it restored
the confidence of a deeply discouraged population.
New Deal did much to lessen the worst affects of the Great
Depression,
It also transformed the federal government into an active instrument of
social justice and established a network of laws and institutions
designed to protect the American economy from the worst excesses of
liberal capitalism.
Economic disadvantages of
Federalism
Uneven Distribution of Wealth
It promotes regional inequalities. Natural resources, industries,
employment opportunities differ from region to region. Hence,
earnings and wealth are unevenly distributed. Rich states offer
more opportunities and benefits to its citizens than poor states.
Thus, the gap between rich and poor states widens.
Detroit
 decision had been made for the city of Detroit to formally file
for Chapter 9 bankruptcy. It was going to be the largest
municipal bankruptcy in the history of the United States by far.
 She ruled that Detroit's bankruptcy filing violates the
Michigan Constitution because it would result in reduced
pension payments for retired workers.
 ensured that there will be months of legal wrangling ahead over
Detroit's money woes.
 Federalism has led to legal wrangling and confusion.
Promotes Regionalism
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It can make state governments selfish and concerned only about
their own region's progress. They can formulate policies which
might be detrimental to other regions. For example, pollution
from a province which is promoting industrialisation in a big way
can affect another region which depends solely on agriculture and
cause crop damage.
Differing taxes mean that some businesses try to set up in states
with lower taxes.
 Could lead to a race to the bottom.
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