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I think the reason a "nation with one big budget and financial system" works better than "50 small budgets and systems in a confederacy" is that the smaller, po

I think the reason a "nation with one big budget and financial system" works better than "50 small budgets and systems in a confederacy" is that the smaller, poorer states benefit heavily from the bigger richer states. In general, taxpayers in rich states get back less than they pay in federal taxes, and the beneficiaries are poorer states, who get back more than they pay. It's a good setup, because prosperity in one area can help the whole country, and it lessons the infighting among the states. A rising tide lifts all boats if you will. If one state suddenly goes from 'poor' to 'rich' (like Texas when oil became a big deal) then other states will automatically benefit.

LogicHoleFlaw 18y ago
The original confederacy under the Articles of Confederation resulted in a system where nothing got done, due to the lack of any federal executive power. The US Constitution was explicitly designed to balance the power of the federal and state interests. Since the Civil War though, that balance has tipped towards the federal government retaining the power and authority over money. The increase of executive power in the federal system is a two-edged sword. So is the large budget. It lends itself to inefficiencies in spending which are more easily remedied at a state or local level.