1.The 1789-1932 era: the federal government’s domestic role was limited and states were fiscally stronger and had a large degree of autonomy (Kee & Shannon, 1992).
2.The 1933-1980 era: the national crises between 1929 and the early 1950s produced a stronger national government (Kee & Shannon, 1992).
3.The 1981-Present era: an open and competitive environment forces a shift towards a deficit-ridden federal government and a heightened fiscal activity of state and local governments (Kee & Shannon, 1992). …show more content…
322). As a result, they propose that periods of national crisis enables the federal government to increase taxes and cut spending, which leads to a stronger fiscal government (Kee & Shannon, 1992). In contrast, the anti-crisis eras produce a fiscal environment of tax cuts and spending programs, which causes a weak fiscal government (Kee & Shannon,