Paul E. Peterson - The Price of Federalism (A Twentieth Century Fund Book)
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The Price of Federalism (A Twentieth Century Fund Book)
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In this timely book, Peterson examines which level of government should be responsible for the specific programs and recommends that more responsibility should be placed in the hands of the states and other localities.
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Federal government--United States, Federal government.
publication date
:
1995
lcc
:
JK325.P477 1995eb
ddc
:
321.02/0973
subject
:
Federal government--United States, Federal government.
Page iv
About Brookings
The Brookings Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy. Its principal purpose is to bring knowledge to bear on current and emerging policy problems. The Institution was founded on December 8, 1927, to merge the activities of the Institute for Government Research, founded in 1916, the Institute of Economics, founded in 1922, and the Robert Brookings Graduate School of Economics, founded in 1924.
The Institution maintains a position of neutrality on issues of public policy. Interpretations or conclusions in Brookings publications should be understood to be solely those of the authors.
Copyright 1995 The Twentieth Century Fund, Inc. 41 East 70th Street, New York, N.Y. 10021
All rights reserved
Library of Congress Cataloging-in-Publication data: Peterson, Paul E. The price of federalism / Paul E. Peterson p. cm. Includes bibliographical references and index. ISBN 0-8157-7024-3 (cl : alk. paper ).ISBN 0-8157-7023-5 (pa : alk. paper) 1. FederalismUnited States 2. Federalism I. Title. JK325.P477 1995 95-13773 321.02'0973dc20 CIP
9 8 7 6 5 4 3 2 1
The paper used in this publication meets the minimum requirements of the American National Standard for Information SciencesPermanence of paper for Printed Library Materials, ANSI Z39.48-1984
Set in Garamond Book
Composition by Harlowe Typography Inc., Cottage City, Maryland
Printed by R. R. Donnelley & Sons Co. Harrisonburg, Virginia
Page v
To John and Sarah
Page vi
The Twentieth Century Fund sponsors and supervises timely analyses of economic policy, foreign affairs, and domestic political issues. Not-for-profit and nonpartisan, the Fund was founded in 1919 and endowed by Edward A. Filene.
BOARD OF TRUSTEES OF THE TWENTIETH CENTURY FUND
Morris B. Abram, Emeritus
H. Brandt Ayers
Peter A. A. Berle
Jos A. Cabranes
Joseph A. Califano, Jr.
Alexander Morgan Capron
Hodding Carter III
Edward E. David, Jr.
Brewster C. Denny, Emeritus
Charles V. Hamilton
August Heckscher, Emeritus
Matina S. Horner
Lewis B. Kaden
James A. Leach
Richard C. Leone, ex officio
P. Michael Pitfield
Don K. Price, Emeritus
Richard Ravitch
Arthur M. Schlesinger, Jr., Emeritus
Harvey I. Sloane, M.D.
Theodore C. Sorensen, Chairman
James Tobin, Emeritus
David B. Truman, Emeritus
Shirley Williams
William Julius Wilson
Richard C. Leone, President
Page vii
Foreword
Seen in the perspective of 220 years of American history, the balance between the federal government and the states appears to involve the relentless accretion of power, resources, and responsibility to the national level. For any given generation of policymakers, however, this sense of inevitability evaporates in the heat of their immediate struggles over who does what and, perhaps even more importantly, which level of government pays the bills. The phenomenon is particularly apparent now as a noisy, populist-like reaction to the trend toward a larger federal presence dominates domestic politics. But sadly, the poetry appropriate for a constitutional debate is being swamped by the rough political prose of the mid-1990s.
The United States has the lowest total tax burden in the industrialized world; it is lower still if one focuses on revenues collected by the national government. It also has, among the modernized nations, the most decentralized government structure. America still lacks the extensive national social welfare structure that is the normal pattern, for example, throughout Western Europe. By Old World standards, we also have limited old age, retirement, health, and unemployment benefits. But a man from Mars arriving in the midst of the current debate in Washington might well imagine that a great revolution was necessary to reverse the excesses of some uniquely powerful and oppressive central state mechanism. The charge in Washington is to roll back just about every area of public activity. Even moderates fret that unless we do so the nation will be bankrupt at some point early in the next century.
Understanding why our politics has this special character is not easy, although the continuation of race and economic inequality as central domestic issues no doubt is at the heart of the explanation. Still, the ongoing debate would be immeasurably clarified if we shared a common comprehension of the facts of our governmental division of responsi-
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