"Whether competition among governments is good or bad comes down to the philosophical questions of what you want government to do and how much you fear government power."

Econprof N. Gregory Mankiw explains a really basic point about federalism for NYT readers:

If the government’s job is merely to provide services, like roads, schools and courts, competition among governmental producers may be as good a discipline as competition among private producers. But if government’s job is also to remedy many of life’s inequities, you may want a stronger centralized government, unchecked by competition.

A really basic point, as I said, but it's a point everyone should have down pat.