ALEC President Jonathan Williams Returns to Northwood to Make Case for Federalism

Nationally recognized economist and 2005 graduate explores how competition among states, free markets and limited government can safeguard American liberty.

More than two decades after graduating from Northwood University, Jonathan Williams returned to campus with a message for the next generation: One of America’s most important safeguards of freedom is also one of its most misunderstood principles.

That principle is federalism.

Williams, president and chief economist of the American Legislative Exchange Council (ALEC), delivered a Freedom Seminar lecture, “America 250: Strengthening Free Markets, Securing Liberty, and Advancing Limited Government through Federalism,” on Tuesday, Oct. 27, 2026, in Griswold Lecture Hall at Northwood University in Midland, Michigan.

A 2005 Northwood graduate, Williams reflected on the principles he encountered as a student and their continuing influence on his work with policymakers across the country.

“These are ideas that I still carry today around the country,” Williams said, recalling his introduction to The Northwood Idea in a philosophy course in 2001.

The Northwood Idea is Northwood’s institutional philosophy, emphasizing the importance of personal freedom, individual responsibility, moral law and free enterprise.

During his Freedom Seminar address, Williams praised Northwood for maintaining an institutional commitment to teaching and discussing the principles of freedom and free enterprise.

Bringing federalism back into focus

Williams began by asking students to define federalism, acknowledging that the term is frequently misunderstood.

He recalled a consultant advising ALEC to remove federalism from its list of guiding principles because “nobody knows what it is.” Williams rejected that suggestion, arguing that its importance to the American founding makes public education about federalism essential.

At its core, he explained, federalism recognizes that “not everything ought to be done in Washington.”

Williams discussed how the U.S. Constitution divides authority between federal and state governments, while the separation of powers among the executive, legislative and judicial branches provides additional safeguards against concentrated government authority.

He also highlighted the 10th Amendment, which reserves to the states or the people powers not delegated to the federal government by the Constitution and not prohibited to the states.

Reflecting on the Declaration of Independence during America’s 250th anniversary, Williams encouraged attendees to revisit the document and consider the Founders’ concerns about centralized power. He noted those concerns remain relevant as Americans debate the proper roles of federal, state and local governments.

Why competition among states matters

Williams devoted much of his presentation to the economic implications of federalism, particularly how states compete to attract residents, employers and investment.

Drawing on his work as co-author of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, Williams explored population migration patterns and the policy differences among states.

He argued that Americans exercise economic freedom when they decide where to live, work, start businesses and raise families — and those decisions send important signals to policymakers.

“Whether states like it or not, they’re competing with the other 49,” Williams said.

He pointed to North Carolina, which gained approximately 84,000 residents through net domestic migration in 2025, as an example of a state attracting new residents. He contrasted that growth with sustained population losses through domestic migration in states such as California, New York and Illinois.

Williams attributed much of the difference to variations in taxes, regulation, education policy and the cost of living. He emphasized that federalism allows states to pursue different approaches and learn from one another’s successes and failures.

Michigan also figured prominently in his analysis.

Williams noted that Michigan ranks 32nd nationally for economic outlook in ALEC’s 2026 Rich States, Poor States report. Although Michigan experienced a modest improvement in domestic migration in 2025, he said its longer-term population trends underscore the importance of remaining economically competitive.

The discussion extended beyond taxation and regulation to education freedom, energy affordability and the growing demand for electricity associated with artificial intelligence and data centers.

Williams argued that states offering reliable, affordable energy and predictable regulatory environments will have advantages in attracting emerging industries and investment.

Free markets versus government favoritism

During a question-and-answer session, an audience member challenged Williams on whether competition among states can encourage governments to offer costly financial incentives to favored companies.

Williams distinguished between what he described as free-market competition and “crony federalism.”

Under the first approach, he explained, states seek to improve their economic climate through policies that apply broadly to businesses and individuals. Under the second, governments attempt to attract investment by offering preferential treatment or taxpayer-funded incentives to selected companies.

“No special favorites, no discrimination,” Williams said in describing the free-market approach.

The exchange reinforced one of his broader arguments: Federalism gives states the freedom to experiment with different policies, but those choices can produce both positive and negative consequences.

Williams also addressed questions about the role of government, socialism and the balance between economic freedom and centralized authority. He argued that decentralization and the ability of Americans to choose among states offer important checks on government power.

A call for engaged citizenship

While much of the lecture focused on economic policy, Williams concluded by emphasizing that preserving freedom requires more than sound government structures.

It also requires informed, engaged citizens.

He encouraged students to read the Declaration of Independence, learn who represents them in government and participate in public discussions about issues affecting their communities.

Williams suggested that individuals often have greater opportunities to influence decisions made by local school boards, city councils and state legislators than those made in Washington, D.C. He encouraged attendees to engage with their elected representatives regardless of political affiliation.

Williams’ presentation, which can be viewed in its entirety on Northwood University’s YouTube channel, was part of “Freedom’s Journey: America at 250,” the theme of Northwood’s 2026 Freedom Seminar. Led by Humanities Chair Dr. Dale Moler, the annual lecture series and honors course explores how Americans have understood, practiced and protected freedom throughout the nation’s history.

The seminar brings students, faculty, alumni and community members together to examine the principles that have shaped the American experiment and consider their relevance to the nation’s future.

To learn more, visit the Northwood University Freedom Seminar webpage.