Limited Government for the American Dream

On Limited Government in his Contract for the American Dream Congressman Chaffetz lists our situation as:

The government is omnipresent in our lives, restricting our basic liberties. The proper role of government is a strictly limited one. We recognize that the States created the federal government. The federal government did not create the States. Further, it is not the government that will create jobs, wealth, or propel the United States of America to reach its fullest potential. It is the American people who will drive America forward.

He suggests that our goal should be:

Imagine a federal government that recognized it could not solve every problem. Imagine a government focused instead on the most important federal roles, such as national defense. Individuals should have the freedom to succeed or fail in this country. It is not the government’s role to stand in the way of either outcome or to choose winners and losers.

To achieve this goal he recommends:

  • Repeal TARP and commit to no more “stimulus” bills that are merely a ruse to grow government.
  • Appoint a bi-partisan “Sunset Commission” to identify at least 100 federal departments or programs recommended for elimination by December 31, 2011.
  • Reduce the corporate income tax to a flat 10%. This will eliminate the wide array of corporate loopholes, incentivize business in the U.S.A., and simplify the tax code.
  • Reject the “Cap & Trade” scheme and repeal all EPA funding related to carbon policy.
  • Sell back to private ownership the three million acres of federal land identified under the Clinton Administration as having no federal purpose.

My thoughts on those steps is as follows:

  • No more stimulus is a great idea.
  • A bipartisan commission would only identify 100 departments by having half the commission identify at least 49 departments or programs and then trade those with the 49 other “crucial” departments or programs identified by the other half of the commission as recommended for elimination. Added to the two departments or programs that the majority could honestly agree on they would scrape together the recommended 100 – none of which will actually get eliminated. Mmmm, sausage.
  • As I said before, a flat tax rate without loopholes allows the private portion of the economy to act with more confidence.
  • All of our government “green” legislation and policies are more political than scientific. It’s too bad that our government can’t stick to facts and let opinions sort themselves out instead of the other way around.
  • The government should sell off any federal land that has no federal purpose.
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Fiscal Discipline for the American Dream

Congressman Jason Chaffetz (UT-03) has proposed a Congressional Action Plan (CAP) called the Contract for the American Dream which he is inviting members of Congress and candidates for Congress to sign. While I agree with his CAP generally I thought I would take the time to break out the four sections of the plan and evaluating what I agree or disagree with more specifically. This post focuses on Fiscal Discipline. Later posts will focus on Limited Government, Accountability, and Strong National Defense.

Congressman Chaffetz describes our current fiscal discipline situation as:

Our national debt exceeds $12 trillion, with our annual deficit in excess of $1.4 trillion. Federal spending as a percentage of our Gross Domestic Product (GDP) is roughly 25%, when historically it has been roughly 19-20%. We pay approximately $600 million per day in interest payments. In short, the current government spends too much, taxes too much, and borrows too much of the people's money. It is unacceptable and unsustainable. No longer can we run this government on a credit card. We are not going to borrow and spend our way out of these challenges.

He suggests a goal to work for as:

Imagine a federal government that treats the national treasure with respect and responsibility by living within its means-where every American pays a fair share.

Here are the steps he proposes to achieve that goal:

  • Reduce total federal payroll and workforce by 10%, except for military. This action will force all federal departments to identify and eliminate waste.
  • Support a balanced budget amendment.
  • Require 2/3 majority vote for any tax increase.
  • Cut non-defense discretionary spending by inflation minus 3% across the board.
  • Impose a moratorium on all appropriations earmarks until the process is reformed legislatively. Work to maximize openness and transparency with filters, to ensure only expenditures with a federal nexus, and prohibit allocations to for-profit companies.
  • Reduce the capital gains rate to 10%. This will lead to increased receipts to the federal treasury and will also increase investment in the USA.
  • Engage in entitlement reform.

Here are my thoughts in a point-by-point format:

  • The idea to reduce government spending and bureaucracy is right but he seems to be using a very blunt instrument to perform this surgical operation.
  • Sounds good to me but show me the proposed amendment.
  • I’m not sure what drawbacks this might have.
  • Why 3%? (Plus, show me the math so that I’m clear on the meaning here.)
  • Sounds like politician-speak for “earmarks are bad but we can’t really get rid of them – let me show you that I want to fix the system.”
  • I favor flat tax rates without loopholes – that provides predictability so that people know what to expect on tax day. That certainty allows businesses to more confidently make decisions.
  • Vague but promising.
Posted in National | Tagged , , , | 4 Comments

Mike Lee and the Constitution

I have been having a hard time getting the time to read and write here as much as I would like. Things are very busy at work, a bit crazy at home, and I am spending more time with offline political activities in preparation for the upcoming legislative session and this election cycle. The result is that I need to readjust my expectations here. I’ll try to put short posts up with some regularity, but not likely as much as has previously been the case. Hopefully this is only temporary.

Because of the recent discussion here about Mike Lee’s stance on the Constitution and his call for a couple of amendments I thought it would be appropriate to share Mike’s post – Why I Focus on the Constitution. I figure it’s always best to let people speak for themselves so here is what I see as the heart of what he wrote:

We must analyze the country’s current challenges and Congress’s proposed solutions through the lens of the Constitution. With such a view, we can accurately determine if the proposed solution incorporates and supports the proper role of government. We must also hold our elected officials accountable to the solemn oaths they have taken to support and defend this document. . . With truly committed constitutional leaders at the helm, we can shift away from a perpetually growing government and the corresponding loss of personal liberty, and instead preserve our freedoms and enjoy the prosperity our great nation affords.

I recommend that anyone who wants to understand Mike and his position in more detail should go read his whole post before trying to engage me in the topic because I don’t claim to know any more about Mike’s position than what he wrote.

Posted in life, Local | Tagged , , , , | 17 Comments

Roll Your Own . . .


photo credit: She Who Shall Not Be Named

When I wrote about the importance of investing in yourself I was having trouble trying to find the words to convey what I meant. I finally found a way to explain what I mean so that nobody should be confused (I hope).

Virtually every book on financial planning or wealth building I have ever encountered says something to the effect that there are two ways to have more money. The most obvious being to make more money and the too-often overlooked being to spend less money. When I wrote about investing in yourself my expectation was that readers would assume I was talking about the things that amount to making more money – increasing your education being frequently cited. That kind of self investment is focused on being better able to produce more goods, or more valuable goods for others to purchase in an economic marketplace.

What I was trying to advocate before was to not forget about self investments that amount to spending less. I would generalize those kinds of self investment as focusing on being able to produce for yourself those things which you have become accustomed to purchasing in the economic marketplace. That may be producing the same thing, or it may be producing a substitute.

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Bob Lonsberry Contradicts Himself on Term Limits

It’s not really fair to expect everyone to have an up or down opinion on a candidate within a week of their campaign being announced. For that reason there should be nothing surprising about the fact that Bob Lonsberry is not sold on Mike Lee (yet). As he aired his minor reservations with our latest 2010 Senate candidate he got talking about term limits – because Mike Lee thinks we should have a term limits amendment (perhaps like this one) – and Bob’s position completely failed to add up. At first I was planning to just comment on Bob’s site, but I felt that this deserved a full post.

There is a disconnect between Bob’s position on term limits and what he says later in his article. Here’s what he thinks of term limits:

Yes, people serve way too long in Congress. Yes, we have a professional political class right now. But the insinuation that the era of the Founders was much different doesn’t stand up to the test of history. Several of the Founders themselves held elected office for years on end. Some for the majority of their lives, and our Republic was benefited by their service.

And any person with Mike Lee’s knowledge of the Constitution must understand that an amendment mandating term limits would go against both the letter and the spirit of what the Founders wanted. Term limits don’t limit the freedom of politicians, they limit the freedom of the voters. We don’t need term limits, we have elections. And if Mike Lee, or someone else, can pose a viable alternative to Bob Bennett, and convince voters of that fact, the Constitution’s existing system for replacing politicians will work perfectly.

Later he makes this statement which exposes the weakness of his position:

I’m also bothered by Mike Lee’s age. Not that a 38-year-old can’t serve well in the Senate, but that he’s got so much life left. True, he is saying that people shouldn’t make a career of Washington, but so too did the two current Utah senators, both of whom have since made a career of Washington. Everybody running against incumbents is against long tenure in office. And everybody running for re-election believes in experience and seniority.

My concern is that at 38, Utah could be biting off something it will take 30 or 40 years to chew. I’m nervous about that.

The one selling point for 76-year-old Bob Bennett is that, at his age, he’s got a built-in term limit. He’s also, as they say, the devil you know. (emphasis added)

In case you missed the disconnect, Bob says that the founders already established a way to limit terms through regular elections and then worries that we might be stuck with Mike Lee for 40 years because he’s relatively young.

Here’s the half-truth that opens up the heart of the problem:

Term limits don’t limit the freedom of politicians, they limit the freedom of the voters. We don’t need term limits, we have elections.

It’s true that term limits limit the freedom of voters by eliminating the option to elect a president they like to a third term (to use our existing term limit as an example) – that’s the only freedom of the voters that is being limited. The problem is that the freedom of voters is already severely limited by our lack of term limits because of our political environment where potential candidates often choose not to challenge an incumbent, especially within their own party. For proof of that just look at how many more candidates tend to run for open seats. With term limits we would lose the option to vote for an incumbent after a set time, but we would gain so many candidates who currently choose not to run against an incumbent.

Bob claims that the founders did not want term limits and he’s probably right (although I doubt they ever addressed the issue to prove that conclusively) but they didn’t want parties either (they did make that clear) and we have parties anyway. The party system without term limits makes the regular election cycle a very weak way to limit terms – especially in a place where one party is dominant. Bob says that if someone can pose a viable alternative to an incumbent and convince voters of that fact then the system works perfectly. The question is, how can that happen when the potential candidates remove themselves from consideration because of the system that tilts heavily in favor of incumbents? And what makes a viable candidate? If a viable candidate is one that has the capacity and interest necessary to tackle the issues and do the job of a senator then I am a viable candidate. If a viable candidate is one that voters are likely to believe in that I am nowhere near viable. The first one should be the criteria, and if it were we would have lots of viable candidates for any office.

In a nation that probably has 80 out of 100 senate seats safely in the hands of one party or another and only about 20 seats that actually have a reasonable chance of changing hands from one election to the next the method of limiting terms that the Founders established is virtually impotent. The era of the founders may not have been much different than our era but it was different in some important ways. In this environment the Founders might find term limits to be a very reasonable method to ensure that the voters had the maximum amount of choice in candidates.

Posted in State | Tagged , , , , , , | 8 Comments

A New View on the Flag and Pledge of Allegiance


photo credit: eschipul

I had some interesting thoughts this morning after reading an article I would normally not bother to read. It was talking about a specific historical flag, but my thoughts were turned to the flag generally and then to the Pledge of Allegiance. Here’s the statement that got my brain moving:

The flag is an American flag — 13 stripes, a blue square canton with 13 white stars surrounding an American bald eagle. So far, this flag isn’t strange for its day. In the 19th century, almost anything goes in handmade national flags. (emphasis added)

Suddenly I am released from the idea of a standardized flag and considering the flag more abstractly as a representation of something to believe in. The nation represented by all those handmade national flags was the same, and the symbolism of that nation was consistent across flags (stars, stripes, red, white, and blue), but people felt free to add things to the flag that helped represent their feelings regarding the nation (an American bald eagle in the field of blue being an apparently common addition back then).

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Invest in Yourself


photo credit: Cambodia Trust

I drove in to work later than usual today and caught a bit of Glenn Beck. Like many conservative talk radio hosts I have heard he was promoting the value of gold as an investment. What caught my attention was the way he started out. I’m going to paraphrase here but essentially he started out by saying:

I don’t know what the future holds for this nation, nobody does. I don’t know what you should be investing in right now.

My immediate reaction was to say to myself that I know exactly what the vast majority of people should be investing in right now – they should each invest in themselves. To his credit Glenn said that gold was not the right investment for everyone and suggested that before investing in gold people should invest in food storage, paying down debt, and having some cash reserves. I think that’s a great start but investing in yourself is more than that.

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New Year’s Resolution

My New Year’s resolution for this election year is to be elected as a GOP state delegate in my neighborhood caucus meeting in March. It’s amazing to think that it’s only a few weeks away now. I can’t wait to see what all the candidates will have to send me as they try to win my vote at the state convention. I’ll happily try to be selected as a county GOP delegate  as well, but if I had to choose one I would prefer to be a state delegate.

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Public to Private is a One Way Economic Street

photo credit: taberandrew

A post entitled The New Robber Barons got me thinking about what happens when public and private enterprises compete in a marketplace. Thinking about that led to some interesting observations. The first of which is that progressives are right in their assertion that public and private enterprises can compete without eradicating each other. The problem is that the progressives don’t seem to recognize that this only works in limited cases. They like to point to the post office as an example – let’s go explore that.

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Term Limits in a Nutshell

I read what must be the most succinct summary of the term limit debate over at Utah Policy. LaVarr Webb said:

I am a big fan of congressional term limits if they are applied across the board. It would be foolish, however, for Utah to unilaterally impose term limits.

As long as power in Congress is amassed in its most senior members, Utah needs to play that game or be badly disadvantaged.

But term limits for all makes sense.

The response from trgrant:

I don’t agree in a legislated term limit.  There are people you will want to keep in office for longer than a certain term.

I would respond to trgrant by asking a question inspired by someone who had previously opposed term limits. How many hundreds of incumbent get reelected after “a certain term” despite widespread dissatisfaction with their service – now compare that to the number of people who you would really want to keep in after that time. I would bet the benefits of term limits in terms of removing entrenched and undesirable incumbents would outweigh the loss of established and desirable incumbents by at least 100 to 1. Besides that, of those who you wish to keep in, how much of the reason for keeping them is based mainly on seniority rather than irreplaceability?

To LaVarr Webb I would ask – if Congressional term limits are good, why not set the example by imposing term limits at the state legislature so that voters can begin to see the benefit locally and have more inclination to implement it federally.

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