FREDeralism!

by Chris Edwards, director of tax policy studies at the Cato Institute: . . . The GOP candidates have spoken about immigration, taxes, social issues, and the war in Iraq. . . . The candidates, however, have overlooked a central idea that animated Reagan's view of government. That was federalism, the constitutional principle that the federal government's responsibilities are "few and defined" as James Madison put it.

Reagan believed that the federal government had grown too big and swallowed up too many activities that, in the words of the 10th Amendment, should be left to the states and the people. Education, welfare, food stamps, and other such activities were not properly federal roles in his view. Here is Reagan kicking off his run for the presidency on Nov. 13, 1979: "The federal government should do only those things specifically called for in the Constitution. All others shall remain with the states or the people ... The federal government has taken on functions it was never intended to perform and which it does not perform well. There should be a planned, orderly transfer of such functions to states and communities." When in office, Reagan worked to effect that "orderly transfer." He took aim at the massive system of "grants-in-aid" for the states that had been built up in the 1960s. He managed to cut the number of these subsidy programs from 434 in 1980 to 335 by 1985, and to shrink aid spending by 24 % relative to the size of the economy. He also killed "revenue sharing," which was a no-strings-attached spigot of federal cash for the states. Unfortunately, state aid soared after Reagan left office . . .

That's why I'm pleased that Fred Thompson has thrown his hat into the ring. Thompson has been talking and writing about his belief in federalism. In a recent speech, he argued that "centralized government is not the solution to all our problems...this was among the great insights of 1787, and it is just as vital in 2007." Thompson rightly argues that the abandonment of federalism has caused a range of pathologies including a lack of government accountability, the squelching of policy diversity between the states, and the overburdening of federal policymakers with local matters when they should be focusing on national security issues. Federalism "is a tool to promote freedom" as Thompson puts it. So for the supposed heirs to Ronald Reagan who are running for president, let's hear more about expanding our freedom by cutting the federal government down to constitutional size. . . . [Read More]

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Tags: Cato Institute, Chria Edwards, Federalism, Fred Thompson, Ronald Reagan To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!