The People. I think the people have lost sight of this, and some administrations have as well.
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it gives states power to create local governments
Police Power
This is called Federalism
The answer to this question heavily depends on what society we are talking about. In modern history, since the enlightenment, it is widely believed that governments derive their power from the people whom they govern. This has not always been the case, however, when history shows us that many governments thought they derived their authority to govern from divine right or heritage, or both.
DICTATOR?!?