Epistemic status: All of the western canon must eventually be re-invented in a LessWrong post. So today we are re-inventing federalism. Once upon a time there was a great king. He ruled his kingdom with wisdom and economically literate policies, and prosperity followed. Seeing this, the citizens of nearby kingdoms revolted against their leaders, and organized to join the kingdom of this great king. While the kingdom's ability to defend itself against external threats grew with each person who joined the land, the kingdom's ability to defend itself against internal threats did not. One fateful evening, the king bit into a bologna sandwich poisoned by a rival noble. That noble quickly proceeded to behead his political enemies in the name of the dead king. The flag bearing the wise king's por