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As an outsider looking in, I am wondering whether this might mean that the Republican party has a vision for a weaker federal government, such that the states would have more, well, rights. I.e., if the federal government gets very scaled down, is that at the same time emptying up the regulatory space for individual states to go in all sorts of different directions, or does it come with some kind of libertarian straightjacket?
The majority of the US population lives in wealthy blue states. If the regressive rural states can't stomach the kind of extensive welfare state that makes sense in more urbanized places, fine. Like a "two speed Europe", they can choose to stay behind, so long as California, Massachusetts, NY etc get the freedom to experiment with social democratic policies.
Edit: this kind of more decoupled federalism also exists eg in Canada. Quebec gets to pretend it's France while Alberta gets to pretend it's Texas.
In effect they want states to be able to do what they want, as long as it aligns with Republican ideals. All you need to do is look at their rhetoric towards sanctuary cities for the "states rights" argument to fall apart.
Conservatism consists of exactly one proposition, to wit: there must be in-groups whom the law protects but does not bind, alongside out-groups whom the law binds but does not protect.
-Frank Wilhoit