I don't believe that growth in one area is at the expense of another area. We can all prosper, this is not a zero sum game. Some states encourage growth and their economy grows while others retard growth and lag behind. The better functioning states are not in any way the reason or cause the other states are falling behind. Just because you are wealthier doesn't mean you made me poorer.
This is not the reality of what is happening.
Right now, companies are moving out at a frantic pace from California for better environs. The places they set down in are the ones profiting from the CA demise.
This is the perfect form of federalism: States are free to dictate the way they wish to tax its citizens and spend money. Citizens who do not like these actions in their state either put in new state government or leave for a state that better agrees with their values.
Once the feds have total control over taxes and spending, this model is gone, and all citizens will be under the yoke of a bureaucracy.