Government Spending: The European Experiment

I subscribe to Financial Advisor Roger L. Merrill's (CLU, ChFC, CRPS) newsletter and he recently provided this insightful insight into the false notion that government spending is good for the economy and that Europe is a good role model. It isn't and they arent. The proof is a comparison between Utah and Europe. Utah is the best managed because we are disciplined and frugal. Europe is a mess because you can't spend your way into prosperity. Utah is the example to follow. Investment Perspective "Thoughts on today's markets and economic trends"

Government Spending: The European Experiment Belief in Government Spending European politicians believe fervently that government spending and government jobs actually do create wealth. They are not alone in this belief. Many leading politicians here in the United States firmly believe it too, and use the 'multiplier effect' to support their position. 'Multipliers' - which show how much a dollar of government spending will boost GDP - are used to support government spending. Believers in the 'multiplier effect' argue that $1 spent extending unemployment benefits would increase GDP by $1.63, and $1 for infrastructure would add $1.59 to GDP. Supply Siders To a supply-sider, the talk of multipliers is ridiculous; however, proving that the 'multipliers' do not exist is problematic. There are so many moving parts in an economy that it is impossible to prove a multiplier does or does not exist by looking at short-term economic trends. The European Experiment The good news for those who are serious about finding an answer is that we do have a long-term experiment. It's called Europe. Europe has been the Economic Petri Dish for experiments in the 'multiplier' theory. And the results are spectacularly bad. Despite government spending of nearly 50% of GDP, European economies have been a mess. Unemployment, living standards and overall economic growth have lagged significantly. Between 1980 and 2008, unemployment rates in Europe rose well above unemployment in the US. Only recently, as the US has massively expanded the size of its government, have these unemployment rates converged again. Now, all of them are at very high levels. 'Happiness,' A Truer Measure Faced with these facts, what did European politicians do? They started talking about "happiness." They argued that growth rates and jobs were not the important measures of economic success...happiness was. And for a long time they got away with it. As long as they could borrow and make people happy, it worked. Unhappy Results Today, Europe is not growing...and it's not happy, either. The most disappointed person in the world is the 54-year old Italian or Greek who thought they were about to retire to a happy, upper-middle-class, worry-free existence. But there is no Santa Claus. The European welfare state is dead. European politicians and economists have borrowed just about everything they can and they have no more room in the back of closets or under the rug to hide or sweep government spending and debt. They can't devalue their currency and inflate to make things look better, they can't fool the bond markets anymore and the only people left who believe that they can possibly spend their way out of this are teaching in American classrooms. The Way Out There are only two ways out. Austerity - spend less than you take in and use the difference to pay down debt. Or default - like Greece. The stand-up thing to do is austerity. You borrowed the money, you should repay it. None of this is a surprise, or at least it shouldn't be. The USA Question The obvious question at this point is whether or not the US has reached this point? The answer is, "not yet." Government spending in the US is hurting growth, but underlying productivity is still able to create new wealth. Entrepreneurs are pulling a very heavy wagon, but they are still making progress. The US is still ten years away from facing the kinds of problems so prevalent in Europe. There is still time to avert disaster in the US. (taken from The Economic Antidote 11/30/2011)

Oldroyd announces run for State House

Today I announced my intention to seek the Republican nomination to serve in the Utah State House of Representatives for the new Legislative district 48 (representing E Lindon, NE Orem, and N Provo).

We are entering a critical time in America; we face significant financial challenges and attacks on our moral foundation. How we address these will determine what kind of a future we share with our children.

We need courageous conservatives willing to tackle these issues even in the face of criticism. Securing a bright future requires a vigilant defense of the Constitution and the family.

I am running because protecting our values and the right to secure prosperity and freedom is worth fighting for.

Utah is strong thanks to a generation of conservative ideals. But a bright future is not certain, and threats and attacks are always present.

We know liberty flourishes when the free market is allowed to operate unfettered by excessive regulations and government intrusion. I will fight to promote fiscal responsibility and accountability in government. We cannot let Washington's liberal spending habits take hold in the Beehive State.

Instead we must decrease Utah's dependency on a broken federal system. Government dependency is a recipe for destruction. I will fight to defend the Constitution by rejecting the tendency to view government as the solution to all our problems and instead pulling government back to unleash the wonders of our free market.

I am Pro-Life, and will fight to ensure Utah is doing all it can to protect the life of the unborn. The most vulnerable in our society need champions to protect them. As a pro-life advocate, you can count on me to ensure we give every life a fighting chance. Life is a gift from God and government’s role is to protect life and promote individual responsibility. I will fight the use of taxpayer funds that in any way harms the family unit or promotes any so-called family planning agenda.

I am a Pro-Business champion. Attracting new businesses is a priority. As we grow the economic pie our priority must be to fight for our existing local business heroes. As a pro-business champion, you can count on me to fight for a vibrant environment for all.

I am Pro-Education. As the father to six children in our public education system, I will work to find efficiencies at the Department of education level so that every dollar possible makes it to the classroom. Ensuring a good education is also one reason I will join others in holding the Federal government accountable for failing to abide by the charter agreement when we became a state. The education of our children is worth this battle.

I ask you to join me, because together we can defend the Constitution and protect the family, decrease dependency on and increase accountability of government, protect freedom by increasing fiscal responsibility, and improve the education of our children by making sure each dollar is used properly.

Over the coming weeks and months I look forward to sharing with you more about my background and experience. I'll be scheduling events and launching a website and Facebook page. In the meanwhile you can learn more by calling me directly at 801-404-8635 or emailing me anytime at Taylor@Tayloroldroyd.com

Thanks,

Taylor

p.s. Make sure to add 7pm March 15^th to your calendar so you can attend this year’s Republican neighborhood caucuses.

My Republican Party

Being a Republican means you believe that the American Dream is still possible. A Republican supports creating a system that embraces the risk-taking entrepreneur and the fair and responsible use of land to build wealth.

Hard work and innovation is the path to return America to greatness. But Republicans believe government is too big, too expensive, and too intrusive into the lives of hard-working families and small business owners.

Republicans believe we need new taxpayers and not new taxes. We are Taxed Enough Already.

Raising taxes is a bad idea, especially in a time of economic uncertainty. The bail-outs and bloated spending bills must stop. The growth of government and the debt and deficit of this nation is unacceptable and unsustainable. Our future financial stability is at stake.

Confidence in the ability of government to rein in spending has been shattered these past three years and for the first time, the rising generation may not enjoy a higher quality of life than before. Confidence must be restored by returning to proven principles of fiscal discipline, individual responsibility, moral courage, government accountability, and the safety of our people through military strength.

Another reason the American people have no confidence in our national leaders right now is because they seem unwilling to acknowledge and appreciate the value of taking risk to build a prosperous future. Our Founding Fathers took enormous risk to overcome tyranny. They recognized then, and hard-working Americans know now, that risk is vital in creating jobs. Republicans believe government should get out of the way of risk-taking entrepreneurs and allow the spirit that built this nation to thrive.

As an idea takes hold and the product or service goes to market, jobs will be created and confidence restored. But this is not possible when regulation, fear of increased taxes and fees, and potential litigation is looming over head. Government must stop punishing risk and instead encourage it with lower fees and reduced regulatory burdens.

Once the spirit of innovation is unleashed, our economy will recover and a rising tide will lift all boats. That was a favorite saying of former President Ronald Reagan; who also talked about America as a light on the hill. The American Dream will be possible once again but only through recognizing and encouraging working Americans to once again take risk to build a prosperous future.

Being a Republican also means that you respect the land and recognize that much of our wealth, both individually and as a nation, comes from the land. Agriculture, energy, and textiles are a few vital aspects of everyday life that requires responsible but unfettered access to land. Republicans believe that government must also get out of the way of our growers, producers, and energy developers. In addition, States should have the right to use their land to support education and build wealth and a prosperous economy.

The growth of the debt and deficit of this nation is only rivaled perhaps by the growth of regulatory red tape that acts as another hurdle for businesses and families. Few places have this burden been more apparent than on managing our lands. Republicans want to rein in the liberal environmental extremism and legal system that punishes those that responsibly use the land to grow and feed the world. Local ranchers and County Commissioners know and love these lands more than Federal bureaucrats and Hollywood liberals. Green is not the new gold and government should recognize that America’s producers and growers deserve to operate free from burdensome regulations.

America will be great again when we support the fair and responsible use of land to build wealth and create a system that embraces the risk-taking entrepreneur. Confidence will be restored when government supports a robust private-sector where innovation and competition will lead to generations of prosperity.

A republic if you can keep it

We need to increase our perspective and appreciation of the Constitution through study, meditation, and experience so we can take needed steps to help defend the divinely inspired Constitution and protect the family.

Without a declaration of Independence and the establishment of this great nation, the world is without hope, liberty, and freedom. America is freedom's strongest advocate but I am concerned that we are asking too much of our government because maybe we have forgotten what form of government we have and the tremendous sacrifices made to achieve it.

The Second Continental Congress met in May of 1775. Debate continued even after the Declaration of Independence was accepted in July of 1776 and continued for another year when Congress sent for ratification of the Articles of Confederation; it took four years to be ratified by all states. The Articles of Confederation however had some weaknesses so debate continued into the 1780s.

Then on a day in 1787, 56 delegates walked into Independence Hall in Philly as visionary risk takers and walked out forever to go down in history as patriots; citizen statesmen who sacrificed much and demonstrated wisdom beyond this mortal life.

As they exited from their grueling experience, an aging Ben Franklin was asked by Mrs Powell, "Well Doctor, do we have a republic or a monarchy?" His reply is worthy of telling over and over again. "A republic if you can keep it."

A republic was the goal because it is the form of government where the power rests with the people. It seems almost academic now as nations across the globe seek freedom but at this early stage in our history, this was a bold and risky goal.

The answer of why a republic is worth fighting for is a personal one but a big reason for me is without our involvement, government will continue to grow and a government big enough to do everything for us is big enough to take everything from us. I am deeply concerned with the direction we are headed as a nation. I believe we are in need once again of citizen statesmen willing to acknowledge the divine and willing to make the hard decisions to preserve our liberty.

When the founding fathers appeared at loggerheads over perceived critical issues, they turned to their maker for inspiration. Their prayer was simple and it worked.

So because I believe the foundation of this nation was divinely inspired, then I believe that our role today is to fight to preserve the republic.

How we keep a republic is not rocket science but it takes action. How we maintain a republic starts with voting. I'm afraid the apathy and complacency of the public is the biggest threat to a republic. With our financial and moral future at stake, there is no room today for the cynic sitting on the sidelines. It pains me to read the voter stats from our community; they're not high enough. We need to be willing to engage, kick the tires, and make things happen; even if we are criticized along the way.

One of my political heroes Ezra Taft Benson quoted another political giant, Thomas Jefferson, in his book An Enemy Hath Done This, when he encouraged participation: "He who fears criticism is hopeless. Only those who do things are criticized. To hesitate for fear of criticism is cowardly."

The Constitution is worth fighting for; we should never take for grated its great principles: the separation of powers, the individual guarantees in the Bill of Rights, the structure of federalism, the sovereignty of the people, the principles of the rule of law.

Don't let others action disenfranchise you from the process. Because the system only works if we stay involved. Daniel Webster wrote, "I apprehend no danger to our country from a foreign foe...our destruction, should it come at all, will be from the inattention of the people to the concerns of their government, from their carelessness and negligence." he continued, "I fear that they may place too implicit a confidence in their public servants, and fail properly to scrutinize their conduct..."

There are many ways to be involved...and to teach our children that they must become educated and involved. Harvard recently published a study that says families attending July 4 celebrations boosts their voter turnout and increases their political contributions later in life. It is unacceptable to attend July 4 celebrations but stay home on election day. Anyone that places more energy into preparing for the July 4 BBQ than researching political candidates and issues is missing both the spirit and the letter of the law of what it means to live in a republic.

Each of us must commit to never miss voting on election day. Commit to research the issues and the candidates. Commit to participating in the process of public policy because this process can and has taken away some freedoms. And lastly, live a moral life because James Madison said that, "our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other."

We live in a republic, if we can keep it. Only through our actions and contributions do we contribute to keeping it and defending the constitution and protecting the family.

More thoughts on SCC Amendment B

Dear delegates,

Much of the information you have received about the State Central Committee (SCC) Amendment B has been a blatant mischaracterization of the proposal. Here are the facts:

We are all on the same Republican team, both the SCC and State Delegates. Our goals are to get Republicans elected and promote the principles in our platform.

The SCC is made up of representatives of County Parties around the state and it gives you the County Delegates representation at the state level. This maximizes your influence in state Republican Party politics.

SCC members meet once a quarter, while conventions only happen once a year.

The SCC already approves any constitution changes that the Convention hears in advance of the Convention.

There are three principles at work with the SCC Amendment B proposal:

1. You must be able to reconcile constitution changes with existing constitution provisions. Many times, there are amendments and substitutions during a convention. It is difficult to wait for a full year until the next convention to reconcile any conflicts in the constitution that arise.

2. Much as our federal government and state government constitutions are difficult to change, so should our party constitution. An additional group of eyes looking at the product of the Convention can be helpful.

3. As a County Delegate, you should want the SCC involved in as much decision making as possible because they are your representatives in state party governance. This proposal is a way to preserve the independence of county parties against hasty and irreversible changes that many times affect our county party governance.

This proposal was recommended unanimously by the State Constitution and Bylaws Committee and was advanced for Convention consideration by a 2/3 vote of the SCC in December. Remember that this proposal has to be approved by the Convention delegates. If they think there is a higher principle at work, then they will reject the proposal.

Remember what I suggested at the beginning. We are all on the same Republican team. There is no desire on the part of SCC members to override the will of the delegates, in spite of the mean spirited accusations by opponents of this proposal. The SCC members understood perfectly well that State Delegates will decide if they like this proposal or not. Only as we work together as a Party will we continue to get Republicans elected and promote the principles in our platform.

Proposals considered first at convention are final. I like having the SCC vet and approve them, essentially strengthening them and also catching other possible unseen problems. Why fear an added set of eyes on any good ideas?

Thoughts on Amendment B

I have been questioned about my views about a proposal previously considered at SCC. Here is the proposal: “The Constitution may be amended by a 2/3 vote of the members at a State Central Committee meeting if subsequently ratified by a majority vote of the Delegates present at the State Convention. This Constitution may also be amended by 2/3 vote of Delegates present at the State Convention, if subsequently ratified by a majority vote of the State Central Committee.” (Utah Republican Party Constitution, Article X.B)

I support a few concepts with this and am interested in further and more robust discussion about this proposal. I recall the author said he was introducing it for discussion purposes and I think many voted for it to keep the discussion alive. I welcome the discussion and think this idea has merit but is not perfect by any means...in fact I hear that it may not come up in June (the author is reconsidering, I guess from feedback he's received).

At any rate, I think that we need to make it difficult to amend our party governing documents. I have seen too much time spent (wasted) in crazy ideas that really don’t build for a stronger party. I like the concept that if it's not broken then don’t fix it. Some like the constant tampering and fiddling. I don’t think it is productive.

This change will make it more difficult to amend the Constitution than the Bylaws “It formerly was common practice to divide the basic rules of an organization into two documents, in order that one of them--the constitution--might be made more difficult to amend than the other, to which the name bylaws was applied. In such a case, the constitution would generally contain the most essential provisions…” (Roberts Rules, pages 13-14).

One other key point is this in NOT a power grab because the SCC already has the ability to prevent a convention from amending the constitution. Under the Bylaws, the C/B Committee decides whether proposed constitutional amendments go to the convention or to the SCC. The controversial amendments are going first to the SCC, which has more time to deliberate on them and make improvements, before they go to the convention. (Bylaws 7.5.H)

Proposals considered first at convention are final. I like having the SCC vet and approve them, essentially strengthening them and also catching other possible unseen problems (like what happened in 2006 when a long amendment was adopted on the first reading and now many wish they had read it closer).

Why fear an added set of eyes on a good idea?

Thoughts on Convention & Future of GOP

The 2011 Organizing Convention is fast approaching. Now is when delegates start taking a deeper look at the candidates for party officers and the State Central Committee.

As the out-going Chair, I have a unique perspective on issues and many of these candidates. I hope you will read this post so you will be better informed about why I am running for the SCC and feel free to call me to hear how I stand on the candidates. My other recent posts will give you a chance to understand where I stand on other topics.

The Republican Party is the best vehicle to ensure that America remain morally strong and economically prosperous. I have been involved in the GOP since 1991 and believe that through active participation we can protect our Liberty. I got involved in the GOP because our principles are the path to prosperity and strength. When interviewing other candidates, make sure you ask them why they are involved because these past two years I have seen many that don’t share this view. I am concerned with the attitude that is causing the Party to be angry and full of infighting.

We have great days ahead of us but this path is not sure and vision and vigilance is required.

I have been a fighter for conservative principles all my life. I don’t back down from advocating for adherence to Constitutional principles and protection of the family. But not all share these ideals and so I will fight everyday to ensure a brighter future for our children.

That is why I want to continue to serve as a member of the SCC. Thank you for your consideration. If any want to learn more please call me directly 801-404-8635. I also have relevant insight into all the races that I am happy to share so call anytime.

Thank you for the opportunity to serve as chair these past two years and I appreciate all you do.

Taylor Oldroyd

Responsibility of SCC:

The SCC is similar to our county central committee and members need to be prepared to advocate for our platform. I take this responsibility very serious and that is why I have attended the meetings and never passed up an opportunity to protect the process and our platform.

One of my heroes is Ezra Taft Benson and he said we should never be afraid to advocate for conservative principles because of fear of criticism. I agree.

IRV:

I do not support IRV as a general rule. I trust a system that allows for educating the delegates and an IRV limits the ability to learn in-between rounds of voting. It is possible with an IRV method that the person with an extreme voice can get elected without a majority. For example, with four candidates running and three strong candidates and one extreme candidate that the three cancel out each other and the one without the majority support can win by default.

Ex-officio delegates:

I strongly believe that when we elect our Representatives that we ask them to perform a variety of functions and one of these is to be a delegate. Most Ex-officio delegates hold much institutional knowledge and it would be a disservice to the party to widen the gap of accountability. In fact, we need to close the gap not widen it. We can’t do that by driving a wedge between the grassroots and the officials.

The argument is a veiled attempt to force a wedge between our elected officials and party members and the result will be a weaker party and eventually elected Democrats. If you don’t believe me then look at the history of Salt Lake County; they have been through this and the proof is clear.

Challenges of the GOP:

I believe the greatest threat to the GOP and this nation is the apathy and complacency of the people. I am also worried that we are turning into a party of “angry” individuals instead of maintaining our core strength as united conservatives with a clear message for prosperity and moral strength.

We are strong when we stand together and our voices must be heard to make a difference. But analyze the significant challenges I faced during my term and you can see a real and growing threat to our party.

Rather than use proven processes accepted in Robert Rules and common sense, some try to sue and complain their way into power. They would rather personally attack others leading to their disenfranchisement and inactivity so that their voice is louder, than articulate a vision. I see this tactic used by enemies of conservative principles. Glenn Beck, Sean Hannity, and Rush talk about this all day so you don’t need to hear it from me but our values are under attack at home and abroad and we must vigilantly defend the process of rules and laws.

That is why I reject the law suit and those defending this approach.

It has been partnership and cooperation that has forged this nation and the freedoms we enjoy. Utah has become strong this way and the US will once again return to greatness through partnership and articulating our vision and not through fighting and other militant self-righteous tactics.