The term federalism is derived from the Latin root foedus, which means: formal agreement or covenant. It includes the interrelationships between the states as well as between the states and the federal government. Governance in the United States takes place at various levels and branches of government, which all take part in the decision-making process. From the U.S. Supreme Court to the smallest local government, a distribution of power allows all the entities of the system to work separately while still working together as a nation. Federalism is a vertical division of power between levels of government, such as the states and the federal government. Whereas horizontal federalism refers to the different ways state governments relate to one another.  
  The U.S. Constitution establishes a government based on "federalism," or the sharing of power between the national, and state (and local) governments. Our power-sharing form of government is the opposite of "centralized" governments, such as those in England and France, under which national government maintains total power. While each of the 50 states has its own constitution, all provisions of state constitutions must comply with the U.S. Constitution. For example, a state constitution cannot deny accused criminals the right to a trial by jury, as assured by the U.S. Constitution's 6th Amendment. Under the U.S. Constitution, both the national and state governments are granted certain exclusive powers and share other powers.
  Discussions of federalism generally focus on the vertical allocation of power between the national and state governments. Under the Constitution, powers reserved to the national government include: Print money (bills and coins), declare war, establish an army and navy, enter into treaties with foreign governments, regulate commerce between states and international trade, establish post offices and issue postage, make laws necessary to enforce the Constitution.

The horizontal allocation... [continues]

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