ABSTRACT
This chapter examines why the United States has a federal system of government and how federalism was a practical answer to the problem of providing effective and responsive government for such a large country. It discusses the critical struggle over the meaning of federalism throughout American history and why the power of the national government increased during the 20th century. The chapter examines the benefits and costs of federalism and shows how the Constitution allocates power and responsibility between the national government and the various states. The federal power of the purse has a direct effect on the power and autonomy of the states. Federalism is more than a relationship between the national government and the various states. In American federalism today the national government is supreme, especially in matters of national defense, but a great deal of power and responsibility remains in the hands of the states. Federalism also produces a confusing mixture of responsibility.
