There is a subtle but discernable sea change going on in America’s government structure.  With the Federal Government stymied by philosophical  combat over its very soul, state and local governments are taking the lead in bringing about better days for their citizens.  Governor Brown in California has introduced a balanced budget for his state this year and promises to reduce the state’s too large debt.  Governor’s in the Mid-West states are also bringing state expenses under control.  Governor’s in the Northern Plains are doing all they can to encourage their booming oil and gas industries.  Governor’s are duking it out in the battle to attract businesses to their states with Texas and Florida using a lack of  state income tax shamelessly to court investors.   Others refer to their “right to work” laws to attract major companies to their states, e.g. auto makers to Tennessee, Alabama, Kentucky, and South Carolina. 

This is good news for the Republican Party since 30 governors belong to this party.  About 30 state legislatures are also controlled by Republicans.   I doubt anyone in the party actually mapped out a strategy for withdrawing from the national lists to focus on local government but this is what is happening.   And whether planned or unplanned it will influence the course of events.  For starters the Republicans will be less inclined to compromise in national government actions while taking actions they prefer at the  state level. 

Certainly this will be important for our economy since business and commerce are controlled mostly by state and local law.  Business will like this since it has more  power and pull with state and local government than with national government. 

In an even larger sense the move to greater state and local government control at the expense of national government control would appear to go hand in hand with the “bunker” mentality of  the monied class.  Those with money are holding on to it and guarding against any efforts to strip them of  it.  Relevant here is that most states have dropped their inheritance tax laws while the Feds are seeking to increase its “death” duties.  

I am fascinated with what could result from these trends.   Imagine, a new America with the privileged class hunkered down behind a wall of state and local government while the lower classes waste their time with a federal government becoming less effective each day.