Brave faces amidst a deadly storm

I’m sure most of us have engaged in braving devastation of one form or another where we force a smile under the pretense of normalcy. That was how my friend greeted me last weekend as I quizzed him about major downsizing of nearly all of his business operations. I was mentally devastated too when I exited the conversation.

Fellow colleague Ed Stephens, Jr. has discussed on various occasions how the Luggage Squad have sold their businesses and headed elsewhere while there’s still room to maneuver. What I came across last weekend was the “On Island Squad” or locally owned small businesses who have started major reduction in their operations.

Troubled by this phenomenon, three issues came to mind as I pondered the experience of real business contraction right here at home: 1). Downsizing will translate into less jobs for current and prospective employees. 2). It means bankruptcy for my friend who’s worked 18 hour days for many years. 3). It means an additional revenue loss for the local treasury incapable of meeting basic public services that spiral upwards annually by leaps and bounds.

The decision to downsize is largely due to consumers deciding against buying amid economic bad times. Perhaps this is triggered by the decision to exercise complete prudence in how the family budget is spent. How I wish the local government could avail consumers a $600 monthly voucher to spend. And this could only happen if and when the local government decides to absorb several million dollars in debt for this purpose or to spur consumer spending.

It is really very sad that the Asian economic contagion has infected a large portion of tourist and non-tourist related businesses here. While we instantly react with some sense of hope of tidings that the Asian Crisis has turned the corner, a lot of that message is equally laden with caution from economic analysts who say it is more a case of “stabilization” than real “recovery”. It goes to illustrate the ravaging effects of putting all our eggs (tourism) in a single basket.

We must have victimized ourselves by harboring the adolescent view that the good times will never end. Hope reality has set in and let our well greased sense of complacency be a lesson well learned of the fickleness of tourism jerked around by every conceivable external influence. And when we talk diversification, we must look within ourselves and work on real island strength.

But I can’t still get over the fact that my friend would close down a good portion of his business firm and I must apologize for my “life in government views” treating the issue like it’s a public office that survives on the accrual system. It’s cash and carry and if isn’t happening every so often, daily sales plunge which forces review of when exactly must downsizing begin.

I wonder how many more would bite the dust of the Asian Crisis? For hardworking businessmen in similar bind, I appeal to the local government to grant each of them tax breaks until such time that the playing field returns to an even keel. It’s the only way to ensure their muddling through the crisis. Hello, anybody home?