Describe the sources and extent of the power of the Federal and State governments to regulate business and commerce.
A federal system of government, such as in the United States, divides power and responsibilities between the national government and state government. The powers are classified as
- Implied and Enumerated power
- Concurrent and Reserved power
Implied and Enumerated power:
The US constitution grants congress certain enumerated powers, listed in section 8 of Article.These power covers a wide range of subject, among them the authority of congress of tax, spending and borrowing. All remaining powers belongs to the States. Implied powers are not specifically mentioned in the US constitution but are derived from the necessary and proper clause of Article 1,Section 8. The US supreme court has long recogonized the existence of implied powers.
Concurrent and Reserved power:
Many powers belonging to the federal government are shared by state government such power are called concurrent power. These include the power to tax, spending and borrow money. State government operate their own judicial systems, charter corporation, provide public education and regulate property rights. While “The powers not delegated to the united states by the constitution nor prohibited by it to the states, are reserved to the states respectively or to the people.”These reserved powers often called the police powers allows the states to legislate and regulate to the protect the health, safety and morals of citizen
The Us constitution provides that the congress shall have power to regulate business and commerce with foreign nations and among the several states. Article 1 section 8 this commerce clause has two important effects
- It provides the Federal government with a broad source of power for regulating the economy.
- It restricts state regulation that obstructor underly burden interstate commerce.
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