How to kill an economy without really trying

Currently the 12th Legislature is debating House Bill No. 12039 cited as the Omnibus Labor and Business Reform Act of 2000. Since passed in the House March 11, it has been languishing in the Senate for three months.

The bill attempts to motivate existing businesses into continuing operations here and entice new business ventures to enter our islands. This comes at a crucial time considering our failing economy. Yet there are Legislators who have put their heads in the sand and cannot see reality. As one wit put it, a person who sticks his head in the sand will oftentimes get his butt kicked as it sticks out

Back in 1998, I recall a good comprehensive bill of labor reforms being introduced in the Legislature. Despite warning signals that potential labor problems were looming, it was shelved. Then in 1992, a fresh version was reintroduced. It too never survived the shortsightedness of the men with their heads in the sand. Consequently over the years we plunged deeper into an asinine mentality about labor problems.

The 10 and 11th Legislature, under the same myopic leadership, added more oppressive business and labor laws which served to accelerate the exit of existing businesses, frightened away potential investors and hastened our descent into a deteriorating economy. The bills were passed because the Legislators wanted to placate a group of U.S. Legislators paid by labor unions who are set on a course to destroy the frail and fledging economy of the CNMI. One thing many Legislators are good at is knowing how to destroy an economy.

This is no time to quarrel on attempts to reform the oppressive laws that have been imposed. Business and the government are in deep kimchi and must dig themselves out of it. There is only so much that businesses can tolerate. After awhile the so called benefits of doing business in the CNMI become liabilities, and it becomes time to move on to happier hunting grounds.

Government must service enterprise, not hamper it. Do away with all the restrictive laws that currently discourage current and new businesses. House Bill 12039 is a start. In fact, the House bill doesn’t go far enough to correct the mess of laws hampering business and rejuvenation of the economy. For over twelve years we have been fussing with labor laws, and we still can’t get them right. Free enterprise flourishes only in a free–thinking society. What’s wrong with us?

Unfortunately, we have become like a socialistic state where the government dictates who must be hired, how much to pay, and what job he can do. Then business is required to train him at its expense. The government provides for his welfare robbing the individual of any responsibility for his ability. As the government keeps insisting on maintaining an unrealistic dominant influence over the economy, it is quickly destroying it.

It is prudent that the resident work force be employed. But to insist employers hire unskilled employees and then mandate that they be trained at the company’s expense is totally unrealistic and dictatorial. Also to mandate that an employer hire at least 30% resident staff regardless of ability. is punitive. When are we going to get our heads out of the sand?

Many other countries are aggressively searching for new businesses. We are in a fierce competitive battle with them. Hopefully we realize this vital fact before we lose the battle.

There is a desperate need for business and labor law reforms. Give House Bill No. 12039 a chance. It offers direction and hope to rebuilding our ailing economy. Don’t stifle the opportunity. Business and the community is waiting.