Final answer:
The Commerce Clause allows Congress to regulate interstate commerce, and in conjunction with the Necessary and Proper Clause it has expanded Congressional power over time. However, the Supreme Court occasionally limits this power in favor of states' rights, which impacts the balance of power in the federal system.
Step-by-step explanation:
The Commerce Clause is a key provision in the United States Constitution that grants Congress the power to regulate Commerce with foreign Nations, among the several States, and with Indian Tribes. This clause, formally known as Section 8 Clause 3, has been historically significant for increasing Congressional power over economic activities. Its broad interpretation has allowed for the passage of laws that have a national impact, such as setting a national minimum wage, and addressing issues that cross state lines, like drug enforcement or environmental regulations.
One of the most consequential aspects of the Commerce Clause is its combination with the Necessary and Proper Clause (Section 8 Clause 18), also known as the elastic clause. This provision empowers Congress to make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers. This has, over time, led to a broadened scope of implied powers for Congress, thereby enabling it to enact legislation covering a vast array of topics not explicitly mentioned in the Constitution.
However, the extent of this power has been subject to scrutiny and limitations. The U.S. Supreme Court has, in recent times, been more attentive to states' rights, occasionally ruling federal laws unconstitutional when deemed to exceed the powers granted by the Commerce Clause. Decisions like these have sparked debates on the balance of power between the federal government and the states, as well as between the different branches of federal government.