It's in the Constitution, Amendment 10 - Powers of the States and People. Ratified 12/15/1791. "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." You can read the whole thing at http://www.usconstitution.net/const.pdf
The whole concept was a republic - a united federation of states. The purposes binding the states together was stated in the preamble:
"We the People of the United States, in Order to form a more perfect Union, establish
Justice, insure domestic Tranquility, provide for the common defence, promote the
general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do
ordain and establish this Constitution for the United States of America."
Reading the constitution reveals the primary purposes for a federal government were: 1) defense from outside forces and inside rebellion, 2) guidelines for a justice system and 3) long term sustenance of the free fledgling nation.
The consistent inflation of the Federal government over the last hundred years has tilted the power steadily away from the states resulting in a ridiculously bloated bureaucracy and an insurmountable national debt. To some extent this has been fueled by ideals related to "promoting the general welfare" but it is turning our republic - that was founded on strong states - into an empire.
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