Robust US economy leaves NMI behind

Liberal social democrats have used the robust US economy as a basis to impose the proposed increase in federal minimum wage in these isles.

Most recently, the issue is being negotiated between liberals and conservatives to proceed with the approval of the proposed increase, provided that financial help is extended small businesses who would be adversely affected by such hike.

Nonetheless, most advocates of CNMI’s inclusion in the proposed increase in federal minimum wage have missed the point altogether: The US economy is robust with unemployment being at its lowest, including a decline in uninsured Americans across the land.

Here on the other side of the Pacific divide, the CNMI’s economy has ailed so badly as a direct result of the Asian crisis and the ruination of investment stability of these isles emanating from the constant threat of a federal takeover.

More than 2000 tourist related businesses have closed shop over the last four years. While an equal number of business licenses were issued recently, it fails to show a rebound in economic activities or revenue generation anticipated as a result of new ventures.

To impose the current federal minimum wage (excluding the proposed increase) will itself force the closure of nearly all industries here. It’ll fast-track the CNMI’s economic death knell far beyond our wildest imaginings. It would mean far greater unemployment of not less than 5000 for island residents. Social liberals would have turned these isles into a ghost town and all the negative elements that come with hopelessness and abject poverty.

I certainly support an increase in federal minimum wage for the other side of the Pacific divide given the robust national economy that has soundly left these isles behind. The reality should be understood that although we’re a permanent part of the US, we’re in the Asian region and the regional crisis has definitely taken its toll on our very fragile economic foundation.

The once primary income earner–tourism industry–has been reeling all these years and while we welcome tidings of economic recovery in Japan and Asia, it’ll be several years before these countries could determine its success rate in restructuring and blending the old and new economy. Their success and the positive ripple effects of their recovery would eventually trickle down to these isles. For now, most every hope is really one of guarded optimism.

The impact would be so devastating as to force current investments to contract or close shops and relocate elsewhere. In the process, the CNMI could bid adieu to any lasting future investments to scaffold the public coffers. It would force city hall to seek for an increase in our share of food stamps to provide meals for many families who would hopelessly be jobless.

We would also see an exodus of foreign workers returning home–not less than 20,000 of them–for work opportunities would have become as rare as they are in their country of origin. We would have forced them into greater poverty for we would have shut down job opportunities which now allow them to sacrifice so that their children can see brighter days ahead.

In either case, the CNMI would have become a total ghost town when the effects of inclusion in federal minimum wage is approved without realistic review of its impact in these isles. Let us hope that proponents of this measure buckle down to reading studies done on this and other relevant issues. Justice would have been served if you give yourselves the chance to see this issue from our tiny lenses. Si Yuus Maase`!

Strictly a personal view. John S. DelRosario Jr. is publisher of Saipan Tribune.