Why are states and local governments referred to as "laboratories of democracy"?

States and local governments are often referred to as "laboratories of democracy" because they have the ability to experiment with various policies and programs that can serve as models for the entire nation. This concept suggests that by allowing different jurisdictions to implement diverse approaches to governance, lawmakers can observe the outcomes and effects of these policies in real-world settings. Successful initiatives can then be adopted or adapted by other states or the federal government, facilitating a process of innovation and improvement in public policy at a larger scale.

The term emphasizes the flexibility and creativity that subnational governments have to address unique local issues. For instance, one state may implement a new healthcare program or educational reform that, if proven effective, could inspire similar action at a national level. This experimentation fosters competition among states, encouraging them to find efficient solutions to social and economic challenges while respecting the principles of federalism.