This division and decentralization of the government creates a system of checks and balances and promotes political participation and variety, which means that there's no possibility for one political entity to hold the entire constitutional power in their hands. Thus, the risk of corruption and tyranny is significantly lower, and more and more individuals, groups, and sociopolitical movements can offer diverse opinions, which can and will be included in the process of formation of the federation's politics and policy. This also means that federalism encourages political innovation and creation, as well as citizen participation in law and policy making, which are some of its most important benefits.

Another important advantage of federalism is the fact that it promotes cooperation among the political entities, which caters to the individual needs and interests of the public much better than any other political system. Each state can create a local governing system with its own laws and regulations which will be most beneficial to its citizens. For example, if a natural disaster occurs, the state will first respond with its local resources and it will rely on its local laws and regulations to provide help and guarantee the safety of everyone involved in the situation; in other words, the states do not rely on the national government to resolve local issues.

One of the main disadvantages of federalism is that it only works in favor of the majority, and some even argue that it often benefits the elites. For example, the issue with segregation and slavery in the US is often used as a counterargument against federalism, because it is said to be a direct consequence of the local governments' authority to create laws that benefit solely the majority. The local governments are also granted the power to challenge the national government and vice versa, which creates a plethora of other problems in the management of governmental power. In other words, federalism makes it possible for one state to pass a law which has been created with questionable and even selfish motives in mind—one that cannot be removed or nullified on a national level.

As a result, multiple inequalities arise between the states. For instance, one state can often have better employment and educational opportunities or a better health care system than another state. Thus, interstate competition and inequality are also significant disadvantages of federalism.

The question now is whether the advantages of federalism outweigh the disadvantages, and if so, why?

When it comes to the US political system, many agree that federalism is much more beneficial to the nation, because it guarantees the safety of the citizens and functions in favor of their welfare; thus, some of the disadvantages can be ignored and some issues can even be easily resolved. Numerous studies show that the majority of Americans do not wish to change their current political system; they would rather change the leadership and political structure rather than the system itself. Every political system comes with its own pros and cons; according to many, a decentralized, federal government is the best solution for a country such as the US, as it promotes the betterment of the society and the nation in general.

As we already established, regional governments can all create their own laws and regulations and are given authority to govern in ways which are deemed most suitable and most efficient for the state in question. According to the Tenth Amendment to the US Constitution,

The powers not delegated to the United States by the Constitution nor prohibited by it to the States, are reserved to the States respectively, or to the people.

These powers are known as reserved powers, and they allow the states to govern and secure the safety and well-being of their citizens. The state criminal law, the local business laws, the management of the trade and commerce system within the state, as well as the management of public roads and public schools are just some examples of reserved powers.