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S. constitution and the delegated powers the national government has according to the U.S. constitution makes the shift of powers from the federal government to the state governments limited by the existence of the U.S. constitution. A complete shift of powers from the state governments, in political, economic and programmatic terms toward the national government is impossible to be defined in realistic terms.
Historical events determined the lines between the layers of government to be in constant move. International and domestic events made the federalist form of government of the U.S. To act like a live entity that will always have to adapt its processes of development to external factors. Two World Wars, depression periods, globalization, terrorist attacks, the invasion of Iraq and more recently, the collapse of the housing market were making the delegated powers of the federal government subject to constant change in order to adapt and guarantee it its role of representing the nation's interests above all.
National policies involving welfare, environment and education are issues of a general interest that are better regulated by the national government from a general perspective than by the local governments that are able to make it in different degrees and with different means. On the other hand, the private sector pushed toward a limitation of national government powers because of the big corporations...
The recent collapses of AIG, Fannie Mae and Freddie Mac and the government's mandatory intervention are facts that prove the importance of preserving certain powers for the federal government that allows it to intervene whenever the national interest prevails over the local one. It is true that there is much debate over the degree of such extension in powers for a national government, but there are measureas that had to be taken on the spot because corporation such as AIG that "insures cars, homes, skyscrapers, factories, families, other insurers. Its guarantees sit behind mutual funds and money funds, pension funds owned by government workers, 401 (k) holdings, and annuities"(MacDonald, 2008) constitute exceptional cases that are asking for the federal government to step in.
References
Longley, R. Federalism: National vs. State GovernmentThe powers of national and state governments. Retrieved: September 16, 2008. Available at http://usgovinfo.about.com/od/rightsandfreedoms/a/federalism.htm
MacDonald, E (2008) What the Fed's Rescue of AIG Really Means. FOXBusiness. Retrieved: September 18, 2008. Available at http://emac.blogs.foxbusiness.com/2008/09/17/what-the-feds-rescue-of-aig-really-means/
History of U.S. Federalism. Retrieved: September 16, 2008. Available at http://www.cas.sc.edu/poli/courses/scgov/History_of_Federalism.htm
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