I agree. It's not about whether or not government should propose policy but rather which level of government should. It's a question not of what, necessarily, but rather in how, specifically.

Local vs Federal

It's more of a question of whether policies should be enforced and implemented more on a local level or more on a state, federal, or even international level. I prefer the implementation of the 10th amendment, specifically, in order to minimize the federal government in favor of state and local governments.