. Authored by TPPF senior fellow Mario Loyola, the report recounts how federal power has expanded over the past hundred years chiefly to serve special interests in uncompetitive states. Loyola urges champions of constitutional liberty to focus on fighting the two towers of the progressive movement, namely federal control of state policies through “cooperative federalism” and government-created cartels and monopolies for the benefit of special interests.
“It’s crucial to understand that federal power expanded, not in order to displace state power, but to absorb it,” says Loyola. “That’s the real reason states now depend on federal ‘assistance’ for 40 percent of their budgets. It’s also why states now have to seek federal ‘permission’ to implement federal policies, instead of exercising freedom at the state level. Complying with the conditions the federal government imposes through ‘cooperative federalism’ programs actually turns states governments into instruments of federal power.
“In order to revive the 10th Amendment and restore the Constitution, we have to focus on two things: First, we have to keep state and federal government strictly separate, both in their budgets and in their regulations. Second, and even more important, we have to start uprooting the barriers to competition that exist at federal and state level – from needless occupational licensing requirements to agricultural marketing boards to federal dairy regulations.”