When the people agree to abide by the suggestions offered through rule of law secured with a working federation the people in the states decide.
That is explained here:
Reclaiming the American Revolution The Kentucky and Virginia Resolutions and Their Legacy William Watkins 9781403963031 Amazon.com Books
Second, federalism permits the states to operate as laboratories of democracy-to experiment with various policies and Programs. For example, if Tennessee wanted to provide a state-run health system for its citizens, the other 49 states could observe the effects of this venture on Tennessee's economy, the quality of care provided, and the overall cost of health care. If the plan proved to be efficacious other states might choose to emulate it, or adopt a plan taking into account any problems surfacing in Tennessee. If the plan proved to be a disastrous intervention, the other 49 could decide to leave the provision of medical care to the private sector. With national plans and programs, the national officials simply roll the dice for all 284 million people of the United States and hope they get things right.
Experimentation in policymaking also encourages a healthy competition among units of government and allows the people to vote with their feet should they find a law of policy detrimental to their interests. Using again the state-run health system as an example, if a citizen of Tennessee was unhappy with Tennessee's meddling with the provisions of health care, the citizen could move to a neighboring state. Reallocation to a state like North Carolina, with a similar culture and climate, would not be a dramatic shift and would be a viable option. Moreover, if enough citizens exercised this option, Tennessee would be pressured to abandon its foray into socialized medicine, or else lose much of its tax base. To escape a national health system, a citizen would have to emigrate to a foreign country, an option far less appealing and less likely to be exercised than moving to a neighboring state. Without competition from other units of government, the national government would have much less incentive than Tennessee would to modify the objectionable policy. Clearly, the absence of experimentation and competition hampers the creation of effective programs and makes the modification of failed national programs less likely.
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If you want to know why the working federation was replaced by the counterfeit version working for the criminals now, then a good start is here:
Avalon Project - Notes of the Secret Debates of the Federal Convention of 1787 Taken by the Late Hon Robert Yates Chief Justice of the State of New York and One of the Delegates from That State to the Said Convention
Secret proceedings and debates of the convention assembled at Philadelphia in the year 1787
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Page 13 Luther Martin
One party, whose object and wish it was to abolish and annihilate all State governments, and to bring forward one general government, over this extensive continent, of monarchical nature, under certain restrictions and limitations. Those who openly avowed this sentiment were, it is true, but few; yet it is equally true, Sir, that there were a considerable number, who did not openly avow it, who were by myself, and many others of the convention, considered as being in reality favorers of that sentiment; and, acting upon those principles, covertly endeavoring to carry into effect what they well knew openly and avowedly could not be accomplished.
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