Unlike the preceding chapters, which focus on the democratic and fiscal costs of state government, Chapter 5 addresses the offsetting direct benefits that states and/or federalism have been claimed to bring. The two most popular such defenses tend to be the diffusion of government power and the ability of states to tailor laws and policies to the demands of their respective populations, but there are several others as well. The discussion here evaluates those defenses. It concludes that, despite their facial appeal, the various defenses turn out to be either very minor or, while significant, replicable at least as well by the national government in some cases and local governments or inter-government partnerships in others.