The people are not an element of the state rather, the state is an element of the people. Governments do not preexist people, it was people who created governments and the notion of state. It bares repeating. The state did not create the people, the people create the state. Elements of the state are the branches, or columns or estates established to create legislation and enforce and be judicious over such legislation. No matter who it is that rules or governs, no matter where one might live, it is an axiom worth remembering that the people are the holders of the original political power.
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The idea that people within a state can and should determine the laws within that state is referred to as popular sovereignty. Popular sovereignty is the principle that the people in a state can determine the laws within that state.
Each state has state government because Arizona wouldn't know what's best for Maine, and vise versa. (that was an example) It's because not every place is the same and has different needs and whatnot.
A nation state gave early people's far more security and a better understanding of their common language and history. These things unify a nation state and give the people within a reason to identify with said state.
all the people living in that state