Federal System

A federal government is a system that divides up power between a strong national government and smaller local governments.

In the United States, the Constitution created the federal system by limiting the activities of the national government to a few areas, such as collecting taxes, providing for defense, borrowing money on credit, regulating commerce, creating a currency, establishing post offices and post roads, granting patents, creating lower courts, and declaring war. The 10th amendment of the Constitution, on the other hand, gave all other powers to the states. As a result, any specific power not given to the federal government is given to the state government.