State economy not helped by lawmakers’ self-contradictions

LAWMAKERS often fail to understand that they can deter private investment not only through the laws they pass, but also the proposals they discuss. And when lawmakers send mixed messages, self-contradiction alone can cause private businesses to reassess whether to invest.

This reality was highlighted by recent comments of Rep. Casey Murdock, R-Felt. After the scandalrelated resignation of the state senator who represented northwest Oklahoma, a special election is now scheduled, and Murdock immediately said he will run. In his announcement, Murdock declared one of his priorities would be to encourage investment in northwestern Oklahoma.

“Agriculture and energy are the engines that drive our economy, and I want to encourage those industries to invest more in our part of the state,” Murdock said. “We have programs that give incentives for businesses in Oklahoma City and Tulsa, but we can’t forget about rural Oklahoma. I want to encourage businesses to grow and expand here so we have more jobs and the increased quality of life that comes with a booming economy.”

Such statements are often Republican boilerplate, and normally wouldn’t draw a second glance. But in Murdock’s case, they’re notable because just a few months ago he was bashing the same energy companies he now says should invest more.

During this year’s session, some lawmakers advocated increasing Oklahoma’s gross production tax, which is lower than in other energy states. Oklahoma’s energy producers argued the lower rate has fueled greater economic investment, creating jobs, particularly in rural Oklahoma. When oil prices plummeted, drilling declined at a much higher rate in Texas, New Mexico, Colorado and North Dakota.

During the legislative session, the Oklahoma Oil and Gas Association placed ads in print, television and online urging opposition to a tax increase. A typical print ad declared a tax increase would “slow growth. That hurts everyone: teachers, business owners, nurses, construction workers and parents.” The ads urged citizens to call their local representative and voice opposition. The TV ads were much the same, if more forceful, warning that a tax increase “could drive billions of dollars in investment and thousands of jobs to neighboring states.” Such advocacy efforts are routine in Oklahoma.

Yet in an interview with the online NonDoc, Murdock responded, “They’re not going to bully us into changing our positions” and complained that people “overstep their bounds” if they directly criticize a politician. He complained the ads were “calling out Joe Blow Representative and putting direct pressure on them …”

So candidate Murdock wants businesses to invest in Oklahoma and touts the importance of state incentives to encourage investment, but representative Murdock thought those same companies and their local employees should hush when lawmakers talk about abruptly eliminating those same incentives.

Business officials viewing that self-contradiction wouldn’t be wrong for concluding the pro-growth messages of Oklahoma politicians should be taken with a grain of salt once they’re in office.

Of course, Murdock isn’t the only lawmaker to send economically conflicting messages. And that’s yet another reason Oklahoma’s emergence from state recession has been far less robust than desired.