In recent years, tensions around race and culture in the U.S. have intensified, revealing deep divides that often manifest through state preemption of local laws and regulations. The relationship between different levels of government is a hallmark of America's unique approach to governance. When functioning effectively, it can surpass the more centralized systems seen in Europe and elsewhere. However, the growing trend of states overriding local rules—particularly in ways that amplify political divides—remains a critically underexplored aspect of our national discourse on race and culture. Our guest today, Amy Liu of the Brookings Institution, is deeply familiar with these dynamics. She joins us to delve into the theory behind state preemption, providing concrete examples from recent history that highlight its detrimental effects on the economic vitality and social cohesion of our diverse nation. Liu also offers thoughtful strategies for addressing and mitigating the impact of state preemption, emphasizing the significant costs we bear as a society when these power struggles go unchecked. There are two reports we mention in this episode. They are: Remaking Economic Development, and Why State and Local Relationships Matter. This episode was edited by Adam Linder of Bespoken Podcasting.