Power Shifts In Intergovernmental Relations: A Result Of Fiscal Feder

Power Shifts in Intergovernmental Relations A Result of pecuniary FederalismFiscal federalism is the result of the states dependence on the internal government for funds. Until 1913, the national government had minimalmonetary resources, thus possessing little control over the personal business of thestates. Once effected, the Sixteenth Amendment resulted in the amassing ofgovernment funds on the national level. This reserve of money enabled thenational government to initiate a multitude of national programs--such as theinterstate highway--as well as provide grants to the states. It is primarilythrough these grants that the national government can exert influence over state personal business for, by designating restrictions in the distribution of these grants,the national government can compel states and localities to make or alterpolicies and legislation in accordance with its agenda. The manner in which thenational government has wielded the influence of money throughout the his tory ofthe nation has continually altered intergovernmental relations. Since theDepression, fiscal federalism has caused the national government to dominate thestates recently, however, reforms have begun to upshot power to the states.Policies and precedents of the New Deal centralized power in thenational government. To remedy the devastation of the Great Depression, itassumed a more direct and overabundant role in the lives of the people. Con...