The federal government has been a progressive character in most social policies. There are still racial minorities who can recall colored water fountains and local troopers squaring off against the feds.
There are still laws in place in Southern states that criminalize homosexuality. Were it not for the Supreme Court, gays would be barred from (law, education, medical) certification in Texas. At this moment in time, the federal government is the only entity preventing states like Utah from stomping on the rights of gays and atheists. Decentralizing authority is not necessarily an improvement. You are excluding outside influences and opinions that could be beneficial.
The recession was spurred by corporate collusion with government, something that no level of governance is immune from in any way. Your local politicians are accepting bribes. I campaigned for mayor a few years ago and saw an unbelievable amount of nepotism, back-door deals, etc. Blaming the federal government for a global recession is naive. I'm not a fan of the feds, but the facts are indisputable: our government has actually done a way better job than most.