Posted by Ilya Somin:
Federalism vs. Decentralization:
http://volokh.com/archives/archive_2009_04_12-2009_04_18.shtml#1239860012


   Malcolm Feeley and Edward Rubin have published [1]an important new
   book that expands on their previous scholarship arguing that
   "federalism" - defined as a constitutional guarantee of autonomy for
   subnational governments - is undesirable in the modern United States.
   For a sympathetic summary of the book's thesis, see [2]this post by
   Sandy Levinson. Unlike some other critics of federalism, Feeley and
   Rubin are not advocates of comprehensive political centralization.
   Rather, they argue that all the putative benefits of federalism can be
   better achieved through what they call "decentralization." Even if
   states lack any constitutional guarantees insulating them from control
   by the central government, a rational central legislature can allow
   certain decisions to be made by the states as a matter of policy.
   Thus, if state officials can make policy in certain areas better than
   those in Washington, Congress can simply allow them to do so as a
   matter of policy. There is no need, Feeley and Rubin contend, for
   constitutional guarantees of federalism. Indeed, such guarantees are
   actually harmful, since they might hamstring congressional efforts to
   respond to changing conditions.

   The major flaw in Feeley and Rubin's argument is that Congress has
   little or no incentive to pursue anything approaching optimal levels
   of decentralization. To the contrary, there is likely to be a strong
   tendency to expand federal power far beyond that point. Federal
   officials have strong incentives to expand the scope of their power,
   and numerous interest groups would like to impose uniform rules that
   prevent dissenting states from going against policies that they
   advocate. Some scholars argue that overcentralization can be prevented
   by state governments exercise of their political influence, since they
   can lobby Congress to limit its infringements on their powers.
   However, as John McGinnis and I discussed in [3]this article, state
   governments themselves often have strong incentives to support
   overcentralization, especially if expansions of federal power are
   coupled with increased federal subsidies to the states. Others claim
   that the growth of federal power can be checked by voters, who might
   punish excessive centralization at the ballot box. But, as McGinnis
   and I explain, most voters are "rationally ignorant" and have little
   or no understanding of federalism issues; they are therefore unlikely
   to effectively check the growth of federal power.

   More fundamentally, Feeley and Rubin's argument can be used to justify
   eliminating virtually any constitutional restraints on government
   power. If Congress can be trusted to rationally determine the optimal
   use of its own authority, then we don't need constitutionally mandated
   protection for speech, religion, the rights of criminal defendants,
   and so on. Even if there is no Fourth Amendment constitutional
   restrictions on the use of search and seizure, a rational Congress can
   be trusted to enact appropriate statutory limits on law enforcement
   authority.

   Some would argue that limits on central government power have few or
   no benefits, and that federalism is undesirable for that reason.
   However, Feeley and Rubin, with their support for "decentralization"
   don't fall into that camp. Unfortunately, they fail to prove that
   Congress can be trusted to promote decentralization without the
   imposition of constitutional limits on its authority.

References

   1. http://www.press.umich.edu/titleDetailDesc.do?id=106254
   2. http://balkin.blogspot.com/2009/04/federalism-political-identity-and.html
   3. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=578143

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