September 29 (Wednesday): Building Capitalism

READ: Walker, The Rebirth of Federalism, Chapter 3
"ExpressScripts Subsidies"
            "Mo. Senate chief ousts chairman blocking Ford bill"
            "Even with Missouri tax breaks, Ford might not upgrade
                     the Claycomo plant"
            Testimony of Baird Webel on the Insurance Crisis
            "Connecticut, 19 other states launch AIG investigations"
            "For Cuomo, financial crisis is his political moment"      

1. What is dual federalism, according to Walker?.  Be sure to discuss finances.  Why did Federal government activity grow?  Did growing federal activity weaken the states (define “weaken”).

2. Does Federalism make American economic policy more efficient?  Give both sides, using the readings.  You will have to address the question of whether or not state economic development incentives and Interstate competition does more harm than good, or more good than harm.  Should Missouri provide special incentives to firms like Ford?

3. How much, if any, is federalism to blame for the economic meltdown of 2008?  Be sure to look at Webel’s testimony, and the articles on AIG and Cuomo.