Question

Is federalism dead?

The states of New Jersey and California are asking for help from the government. Michigan is doing the same to keep the car industry afloat.

The states are asking the government to help them because they followed the idea that governments have to give to the citizens what they ask. Even if they cannot afford it.

The USSR followed the same approach. Eventually revolution (such as in Hungary and Poland) destroyed the system.

I do not want to sound paranoid. History is full of disastrous examples of governments becoming too big. The implosion of big governments is an historic reality. As in the case of any bubble: the credit bubble of the 1930s, the inflationary Great Society/Vietnam war bubble of the 1970s, the Asian bubble of 1998, the tech bubble of 2000, and the real estate/credit bubble of 2008.

There have been other major structural bubbles such as the Roman Empire, the English Empire, the Church in the middle ages, the monarchy of France causing the French revolution, the Italian Renaissance, and the communist Russia after Karl Marx. These are the most dangerous bubbles caused by excessive concentration of power. Are we moving in that direction?

More, much more when you read older posts and subscribe to The Peter Dag Portfolio by going to https://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977