In recent years, the concept of federalism has played a crucial role in shaping America's political landscape. This structure allows states the power to legislate and govern independently while also adhering to federal laws. Analyze the ways in which federalism influences policy-making in the United States today.
In your response, cite specific examples of how federalism can lead to both innovation in policy and conflicts between state and federal governments. You should also consider the impact of judicial decisions on the balance of power within this system.
Note: The provided solution includes an example of a perfect-score answer and explanation. Your response will not be scored.