Reflections on big government

Tax everything!

As we all know by now, the CNMI government is in dire financial straits. In fact, despite the so-called austerity measures, I’d say the government is pretty darn close to bankruptcy. Which, of course, naturally means that our leaders just have to raise even more revenues.

How are we going to pay for all of this?

By raising taxes, of course!

The Commonwealth Ports Authority has already stumbled across some truly excellent ideas: raise Tinian Shipping fees, charge for airport parking, and so forth.

Here are some additional ideas to consider:

1. Raise the Managaha landing fees.

2. Raise the video rental and movie fee to 50 cents–no, make that a buck instead.

3. As Ed Stephens already suggested, install parking meters and toll booths.

4. Charge each tourist $2 for visiting Suicide Cliff, Banzai Cliff, Bird island, Mt. Tagpochau, the Grotto, and so on.

5. Just tax everything! We need the money. Besides, investors will gladly pay exorbitant taxes just to make sure our government employees continue to deliver much needed public “services.” Just ask any brilliant, tax-happy member of the CNMI legislature. The higher the level of taxation–the more investors want to come!

A regional airline

Because of Continental Airlines’ absolutely inexcusable, greedy profit motives, the number of CNMI-bound flights have been substantially curtailed. As a direct result of this disturbing development, regional governments (backed by their PATA bureaucrats) are now speaking of creating a regional airline in order to bolster their falling tourism numbers.

When you seriously consider the merits of this bold proposal, it begins to make a great deal of sense. Let’s see if we can get all of this straight.

Regional governments are proposing to create a government-backed (or government-subsidized) regional airline to make up for the reduction of private air service in the region. Yet the whole reason commercial flights have been reduced, is because market demand has fallen. So, if big governments step in with a regional airline, market demand will suddenly expand; more tourists would suddenly want to come. Now THAT clearly makes a lot of sense.

But if market demand does NOT suddenly pick up, the government-backed regional airline would then lose money, no? (Particularly if it still has to compete with more efficient private airlines.)

Meanwhile, the invested tax dollars would have been squandered. So, in order to save face and protect the government’s “investment,” the more efficient competitor would have to be punished (regulated), which compromises quality and service until everyone is much worse off than if government had never intervened.

Philippine Airlines, anybody?