The reason for states'rights in the U.S was because they were afraid of a monarchy to take over their brand- new country. This, in general, can create problems however. If the states have too much power, then it makes it easy for them to rebel. (each had their own army) That is how the north and the south split up so easily.
Image:
http://www.legendsofamerica.com/ah-civilwarcauses.html
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