Why is Gonzales v. Raich considered a significant case in federalism?

Gonzales v. Raich is considered a significant case in federalism primarily because it showcased the federal government's ability to regulate commerce among the states. Specifically, the Supreme Court ruled that Congress has the authority under the Commerce Clause to outlaw the use of marijuana, even when state laws permit its medical use. This decision reaffirmed the broad interpretation of the Commerce Clause, illustrating that Congress can regulate activities that may seem local but, when aggregated, have a substantial effect on interstate commerce.

The ruling highlighted the balance of power between state and federal governments, emphasizing that federal authority can supersede state laws when it comes to regulating economic activities that cross state lines. This case serves as an important precedent for understanding the scope of federal regulatory power, particularly in areas that involve economic transactions and commerce, enhancing the federal role in areas traditionally left to state governance. In the context of federalism, this case illustrates how the federal government can assert its power effectively over state interests when it relates to the broader economic impact.