The partial shutdown with the federal government has helped, perhaps more than any other recent political event, to illustrate some of the biggest problems that come with centralizing an ever-larger number of government activities within a single, centralized institution.
Were the US government more decentralized, we’d not now be facing a nationwide systemic failure that has continues to cripple the private sector in many ways.
The federalization of resources and regulatory power over the past century has created a situation in which numerous industries depend on licensing and regulatory approval from federal regulators to function. And, yet, thanks to the shutdown, these industries can do little when facing a federal government that imposes mandates, but won’t provide the agency “services” necessary to allow agencies to function under those mandates.
For example, As The Washington Post has reported, those areas where the federal government has a large regulatory footprint — such as Alaska — are at the mercy of politicians thousands of miles away.
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