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Federalism The United States of America has been a prosperous and productive nation under federalism for the past 200 years. The federal system was designed by the Framers of the Constitution to ensure democracy and liberty throughout a sparsely populated and well-distributed nation. By giving certain powers to the national government, they were resolute to reserve all other rights to the states. Under the Articles of Confederation, the US was a leadership and economically deficient nation. The co federal system lent too much power to the states, leaving the national government not capable. The lack of authori