Abstract

This chapter discusses federalism and, more generally, the relationship between the federal and state governments. It begins by laying out the formal, constitutional structure, and then moves on to examine the historical and cultural evolution of the federalist system, including the inexorable consolidation of political power in the federal government. It describes how states compete with each other to provide laws that are attractive to people and businesses, which has produced variations in the laws governing gambling, divorce, and corporations, among many others. Finally, the chapter describes the increasing power of the federal government and recent judicial attempts to promote more state autonomy.