Federalism has been a constant driver of progress and source of tension throughout U.S. history. Federalist #46 notes the limitation of the federal authorities but also indicates an opportunity for expansion of federal power where voters and politicians find it prudent. Federalism can be unequal and inefficient, but it can also suit local resources and needs and foster effective competition.
[In short, competition focused on the right outcomes, not just for competition’s sake, brings out the best in our systems and drives innovation. ed.]