Americans have tethered a huge amount of economic activity to the federal government. Sadly, that nullifies one of our nation’s natural governing advantages: federalism. Politicians make mistakes all the time, and their schemes are often foolish, but we could minimize the damage if we decentralized power to the states and the private sector.
Unfortunately, we have done the opposite. We have centralized power, and so, for example, the debt-fueled budgeting of one legislature on the Potomac threatens a nationwide economic crisis. The dangerous accumulation of trillions in federal debt is being caused not just by bad budgeting rules, but also by an increasing disregard for the Tenth Amendment.
The federal shutdown is another manifestation of the over-centralization problem. Inside-the-beltway budget squabbles risk widespread disruption because Congress and the White House have arrogantly grabbed so much power from the states and the people.
According to news reports, funding and operations may be delayed for infrastructure and energy projects, parks, small business loans, flood insurance administration, and numerous other activities. Some activities—such as air traffic control and airport screening—may be disrupted as unpaid federal workers decide to stay home.
However, these activities and many others that are currently lodged in the federal bureaucracy can be, and should be, funded by the states and the private sector. That would untether them from the dysfunctional federal government and protect them from the increasingly vicious budget battles that are likely down the road.
Allowing federal politicians to centralize power over the past century was a giant mistake. It has made the nation subject to the whims, prejudices, and delusions of presidents and the supposed leaders in Congress. Centralization has benefited them, not us.
All of us who fear one or the other or both parties in Washington have a common interest in pushing to revive federalism, as do people who want efficient and reliable public services. We should end federal control over those activities that can be handled by the states and the private sector.
