I understand that the act abolished the cities of Washington and Georgetown and made a consolidated government for the entire District of Columbia, but how exactly does this affect the rest of the United States, let alone turn it into a business corporation?
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I've done posts that were well-sourced. It seemed that the OP was asking for an explanation of the basic idea not a proof. I think there's room on the board for theory and summary, especially when stated as such.
But if you have proof this concept is wrong, don't hesitate to bash it. Tons of good proofs are uncovered by back-and-forth. Other anons have already chipped in a few data points.
It's just that I've made unsourced posts myself that turned out to be hilariously wrong. The entirety of the posting may be veritable, and it's possible other brains are not as prone to this sort of folly as I am.
It's all good. I posted a decent explanation of the theory, nothing more. Probably should've made explicit emphasis on the theory part, but I tried. WWG1WGA.