Which level of government should take the lead in addressing the problems facing this nation the federal government or state and local government Why?

It depends on who the problem is affecting. If it is affecting only a small area of people in a single state, it is the responsibility of the state governments. They may chose to defer this right to a local government or a private organization, if they so chose. This is called devolution. If it is affecting the entire nation, it is the responsibility of the federal government. This is the textbook answer. Lately, with the way the courts, specifically the Supreme Court, have been ruling, practically everything is the federal government's responsibility.