The future economy

I have just recently discovered the joy of online Internet shopping, via Amazon.com. I must say, it is truly an amazing development. Given its superior prices (even with shipping included), and its vast selection of products, I may never buy another book, videotape, or music compact disc through retail outlets again.

This has vast consequences for the CNMI economy. Think about it. Unless you urgently need the book right away, why bother patronizing Saipan’s only bookstore, with its extremely limited selection? The only reason, perhaps, would be to browse for the book you want and then order it for considerably less through the Internet.

The same can be said for music CDs, computer software (egghead.com), videotapes, personal computers and many other products and services. For a great many items, why bother buying locally, for virtually double the price?

Consider personal computers. My friend Jim purchased a Gateway PC through an advertisement in a magazine. He called a toll free 1-800 number, gave his credit card number, and in short order received his brand new computer. Another family I know ordered their Apple Macintosh Online, using a credit card. In both cases, money exited the Commonwealth, while substantial consumer savings ensued.

What might you need that could not be purchased online for less than what you might pay locally on Saipan? Toys?

Just type in “toys” on any Internet search engine. No need to purchase locally. Why pay more, if you can purchase at a substantial discount, directly, without the burden of additional taxation?

Naturally, as this trend emerges, many of our local retailers could be seriously hurt. Merely consider the future possibilities.

Want a car? Type in the make and model you want. Simply have the vehicle of your choice shipped to you direct. Eliminate the retail middleman entirely.

Or consider insurance. Want life insurance? Why not buy it Online, at the best rates available? Why should this not be possible?

Financial services is another area. The CNMI presently has no investment brokerage houses, only banks. I know a number of CNMI residents who have investment accounts opened abroad, mostly in the United States. I happen to be one of them.

Want the best deal on a credit card? Why not apply with a US bank, rather than locally?

The possibilities are virtually endless. And this may eventually pose some special problems for the CNMI’s small and extremely fragile local economy. How will the small local entrepreneur, for example, compete with the Internet in a highly globalized, high-tech, post-modern economy?

This is a most profound question that our leaders must ultimately answer. Unfortunately, I don’t think too many of them are up to it (especially garment tax-raising Rosiky Camacho).