American Federalism Today Perspectives on Political and Economic Governance

What are federalism’s challenges and opportunities today?

The framers of the US Constitution enumerated specific powers for the federal government, leaving all else under the purview of states or the people. Over time, the federal government has expanded its role, yet the American people have more trust in state and local governments that are closer to them—and where co-partisanship is often a matter of necessity. Scholars and practitioners in policymaking gathered at the Hoover Institution in September 2023 to discuss the ramifications of federalism for contemporary issues. American Federalism Today presents those conference proceedings.

Renowned experts from a range of disciplines, including economics, political science, history, and law, lay out the key priorities in evaluating and reinvigorating America’s federal system of governance. Among the topics they examine are infrastructure, education and healthcare financing, trust in government, and intergovernmental relations in an era of rising federal debt and unfunded state and local liabilities. Three influential governors—Mitch Daniels, Jeb Bush, and Jerry Brown—describe navigating the federalist system as they led their states through many challenges. This unique compilation draws on the remarkable expertise and experience of its contributors to probe federalism’s strengths, weaknesses, opportunities, and challenges in the nation’s political and economic governance.

Michael J. Boskin is the Wohlford Family Senior Fellow at the Hoover Institution, the Tully M. Friedman Professor of Economics at Stanford University, and former chair of the President’s Council of Economic Advisers.

Condoleezza Rice (foreword) was the sixty-sixth US secretary of state under George W. Bush. She is currently the director of the Hoover Institution.

Foreword
Condoleezza Rice

Preface
Michael J. Boskin

Introduction
Michael J. Boskin

Part 1: Federalism Principles and Perspectives

1: Why States Rather Than a Single Consolidated Nation? The Framers’ View
Michael W. McConnell
Discussion

2: Public Attitudes toward Federalism and the Scope of National Power
Morris P. Fiorina and Alice Yiqian Wang
Discussion

3: The Phases and Faces of Federalism
David M. Kennedy

Discussant Remarks and Discussion
Discussants: Daniel L. Rubinfeld and Thad Kousser

Part 2: The Current State of Federalism

4: The Budgetary Impact of the Abandonment of Federalism
John F. Cogan
Discussion

5: COVID Federalism
David Brady, Jacob Jaffe, and Douglas Rivers
Discussion

6: Recessions and Ratchets: Federal Funds and Public-Sector Employment
Jonathan Rodden

Discussant Remarks and Discussion
Discussants: Daniel L. Rubinfeld and Thad Kousser

Part 3: Federalism in Key Areas of Policy

7: Some Evolving Issues in K–12 Education
Eric A. Hanushek
Discussion

8: Infrastructure in a Federal System
Michael J. Boskin and Valentin Bolotnyy

9: Federalist System of Healthcare Financing in America
Thomas MaCurdy and Jay Bhattacharya
Discussion

10: When Are State Liabilities Federal Liabilities? Social Insurance and Federalism
Joshua Rauh and Jillian Ludwig

11: Is the United States Still a Competitive Federal System?
Paul E. Peterson and Carlos X. Lastra-Anadón

12: Monetary Aspects of, and Implications for, Federalism
John B. Taylor

Discussant Remarks and Discussion
Discussants: Dennis Epple and Thomas Nechyba

Part 4: Practitioners’ Perspectives

Governor Mitch Daniels, introduced by Paul E. Peterson

Governor Jeb Bush, introduced by Condoleezza Rice

Governor Jerry Brown, introduced by Michael J. Boskin

About the Editor

About the Conference Participants

Index

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