The general consensus amongst historians is that the balance between Federal and State powers was done to appease those who were afraid that too strong of a federal government would be no different than the monarchy that the colonists were overthrowing.
Inflation and unemployment rose to their peaks by the end of the 1970s. This happened because the fiscal deficit was largely financed by the federal finances. Further, an energy crisis was being faced due to the increase in the price of crude oil. This led to overall inflation and economic instability.
