One of the main reasons that the US is a federation, that Australia is a federation and that Europe will never be a federation is that a federalist model is the only governing model that can accommodate diversity.
There is a perverse irony in that the political parties that claim to be so pro-diversity want a governing model that homogenises.
Federalist governing systems work on the very basic principle that local problems need local solutions. Because, god forbid, the health and education issues in far north Queensland might be different to inner city Sydney might be different to regional Victoria. And the costs and issues of running a business Hobart might be different to those in Melbourne.
The perpetual nationalisation of policy in Australia into the hands of a bureau-techno-cratic elite based in Canberra leads to not only bad policy badly implemented but turns State Governments into glorified local councils barely able to manage rubbish collection and libraries. Reference Lord Mayor Dan.
One of the other costs of centralisation and nationalisation is that bad polices can’t be exposed through competition. Reference industrial relations. This also creates HUGE moral hazards in that the price of bad policy is not paid by those responsible for the bad policy (or those who elected those responsible for the bad policy). Reference Victoria, Queensland, Tasmania.
America, however, retains some modicum of functioning federalism. For all the BS about the electoral college and the 2 senators per state, it is these federalist brakes that prevent the Californication of the USA.
Put aside the outdoor toilet that San Francisco has become. Consider this:
this is the third such closing in 12 months.
After months of seeing its shelves repeatedly cleaned out by brazen shoplifters, the Walgreens at Van Ness and Eddy in San Francisco is getting ready to close.
California has the highest level of homelessness in the US. Why? Because the Californian Government has among the highest taxes in the US and uses those taxes to welcome the homeless from all across America.
Now accelerated by Corona2020, the wealthy Californian tax payers are leaving to lower tax destinations. While Victorians can leave Victoria, they aren’t able to go to lower tax destinations. Fairness you know.
But it’s not just about tax:
Under California law, theft of less than $950 in goods is treated as a nonviolent misdemeanor. The maximum sentence for petty theft is six months in county jail. But most of the time the suspect is released with conditions attached.
The staff at this Walgreens:
say there is nothing they can do. They say Walgreens’ policy is to not get involved. They don’t want anyone getting injured or getting sued, so the guys just keep coming in and taking whatever they want.”
This is how federalism is mean to work. Bad governments get exposed through competition and not underwritten by citizens in other states.
Would it were only so possible in the land of Oz.