The inept handling of the crisis by US federal level has received lots of attention. What is discussed less is that the crisis has revealed the resilience of the American federal system where the states (when the feds are absent) are able to take for themselves lots of power.
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Also national coordination of essential supplies, production, supply chains, etc
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Yep. A good federal system would handle that -- instead Trump has created a bizarre Darwinian federalism where the states compete for scarce supplies.
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Did states in the 19th century, when state banks printed their own money, handle crises any better? I suspect not because of limited borrowing power.
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State and local level taxation is inherently problematic. It promotes a race to the bottom in funding critical services, as states compete with each other to be "business-friendly."
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And states can't run a deficit which severely limits them.
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