POLS 1101 Lecture 5Outline of Last Lecture I. What is Federalism?II. ContrastA. ConfederationB. Unitary SystemIII. Centralization of Political ControlIV. Dynamics of FederalismA. Dual FederalismB. Cooperative FederalismC. IntergovernmentalismV. Responsibilities of the GovernmentVI. Limits of FederalismVII. State GovernmentsVIII. Local GovernmentsOutline of Current Lecture I. PuzzleII. Federalism as Response to Collective DilemmasA. Prisoner’s DilemmaB. Collective Action ProblemsC. Free-Rider ProblemsIII. Federalism and CompetitionIV. Laboratories of DemocracyA. The Emergence of State LotteriesV. Differing Preferences and Coordinated PolicyVI. Do people get what they want?VII. Federal influence on States SpendingA. Grant-in-AidB. Catergorial GrantsC. Revenue SharingD. Block GrantsE. ContrastVIII. Revisiting the PuzzleCurrent Lecture: Federalism in PracticeI. Puzzle- The constitutions creates a split system between the states and the federal government- Why have the states and the American people allowed the federal government’s power to grow in the past century?II. Federalism as Response to Collective Dilemmas- Increased federal authority can help solve collective dilemmasa. Prisoner’s dilemma: Prevent states/units from going to war with each other b. Collective action problem: Protect states/units from outside aggression- Can provide a common national defensec. Free rider problem: Set national standards for labor and environmental laws - States face individual incentives and would ideally like to be laxed in terms of labor laws and environmental laws (so cost of business is lower, which will bring in money) - Sets baseline so that all states get the same amount of protection and get proportionate amount of business.- Air Polluters in GA can cause a free-rider problem…*White dots are solid waste polluters, black plus signs are air polluters−85 −84 −83 −82 −8131 32 33 34 35LongitudeLatitude●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++**Solution: In 1970 acts for federal clean air act passed, so you don’t see this pattern after 1970-1980ish. III. Federalism and Competition- Competition and innovation across states has mixed effects- Did their policies work for the economy?What happened as outcomes?- Example: George Bush & No-Child-Left-Behind Act… Contagious to other states or even to the federal government- Experimentation in states can produce evidence for new, effective policies- Competition for industry can reduce tax base- Race to the top/bottom- The states start to have laxer business regulations, other incentives foreconomic development…**End up relaxing regulations to where wages for workers aren’t as high as they should be, etc..- National Boundary: I.e. Minimum WageIV. Laboratories of Democracy A. The Emergence of State Lotteries- Different policies can be contagious●● ● ●● ● ● ●●●●●● ● ●● ● ●●●●●●●●● ●●●● ● ●● ● ● ● ● ●● ●●●● ● ●● ● ● ● ●●1970 1980 1990 2000 20100 10 20 30 40 50YearNumber of States With LotteriesV. Differing Preferences and Coordinated Policy- In many policy areas, coming to no solution is problematic- Liberal/Conservations have solutions, but the federal government hasn’t really adopted a solution to certain things… I.e. Arizona has adopted a harsh line on immigration- Different locales may have different policy preferences- In some cases, devolution can eliminate a national-level coordination problemVI. Do people get what they want?- Opinion Liberalism vs. Policy Liberalism−10 0 10 20−4 −2 0 2 4 6Public Opinion LiberalismPublic Policy LiberalismALAZARCACOCTDEFLIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNYNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWYGAVII. Federal Influence on State Spending- Grants-in-Aid- Most general funding- General programs (e.g., infrastructure)- Categorical Grants: have more strings attached- School lunches- Revenue Sharing: Joint endeavor where they both invest money- Interstate highways- Block Grants: loosen up the way a particular program is funded- 1995 welfare reform- Contrast: Unfunded Mandates: Federal government will pass a law that is required and we’re not going to pay you but you have to do it.- All Handicapped Children Act of 1975 : many requirements for what had to be available for children getting an education with disabilities- (drinking age =21 or you don’t get housing)VIII. Revisiting the Puzzle- Why has the power of national government grown?- Collective dilemmas among the states- 17th Amendment- National elections that focus on national problems/solutions- Vagueness of the Constitution has made it difficult to check federal