Compact and nationalist theories of the Union. What was the compact theory of the Union? According to Wikipedia, “In United States constitutional theory, compact theory is an interpretation of the Constitution which holds that the United States was formed through a compact agreed upon by all the states, and that the federal government is thus a creation of the states.”  So the compact theory is just an interpretation of the Constitution which says that the federal government was formed by the states. What was the nationalist theory of the union? According to Wikipedia, “It holds that each nation should govern itself, free from outside interference (self-determination), that a nation is a natural and ideal basis for a polity, and that the nation is the only rightful source of political power.” This simply states that each nation should be in charge of itself without any outside interference.

Can smaller political units contribute to the cause of liberty? I think they can. Smaller states tend to have more economic freedom. Now, a question is raised: Are large states necessary for security? I do not think so. Think of it this way, how safe were the large states involved in the 20th century? And you do not need great military power in order to keep a nation safe. You could use diplomacy, or economic power. Smaller states can really contribute to the cause of liberty if they have the necessary ‘equipment’ for it.