What will happen if 2 states get complete waiver from ALL federal laws?

What is interesting is that if liberals and conservatives were so sure of there ideas, they would allow this to happen. What would be a better way to crush the resistance to government than showing people that not relying on the federal government leads to failure? Every one who pays attention know that without the federal government interfering people would have more money to spend on programs and services that actually work. Allowing a state government freedom from federal authority would lead to the end of the federal government as we know it, and the reintroduction of the federal government as our founding fathers knew it.