Federalism worked well in the 19th and 20th Century, but it is looking increasingly dysfunctional in the 21st. The EU has been very successful as an economic Confederacy-lifting Spain, Portugal, Greece and Ireland from poverty into democratic prosperity, and likely most of Eastern Europe as well. It has also been an abject failure as a Federation. As the US becomes more populous and diverse, its Federalism is also showing signs of strain-while many of our current problems stem from bad decisions and sheer incompetence, America is simply becoming too large and complex to be directed by centralized authority. The old system of 'checks and balances' has largely broken down, and people feel (rightly) that political decisions are increasingly dictated by professional pollsters, PR gurus, media pundits, political 'fixers' and wealthy donors. By returning power to the states and regions, a more democratic system might be acheived. The Pacific Northwest and New England could run Social Democratic administrations, with high taxes, social liberalism and excellent services. Texas and the Rocky Mountain states could be a Libertarian paradise (though the rugged individualists would have to learn to live without Federal subsidies for agriculture and energy). The Deep South could have the Confederacy it always wanted, with chain gangs, prayer in schools and two guns in every home. And so on. The central government would stick to defense, foreign relations, internal security, monetary policy, and arbitrating inter-regional differences. People who disliked living in one region could move to another, instead of forcing their preferences on everyone else; their votes and opinions would matter far more in a region of 50 million people than in a country of 300 million. I don't expect this to come to pass, but as the Federal Government is rapidly driving itself into paralytic bankruptcy, it would certainly be desirable to create alternative, more effective institutions beyond Federalism.