A new direction
Now that the midterm elections are finally over, the CNMI leadership must dedicate itself to a new and better Marianas. We must rectify the mistakes of the past and restore our economic vitality. With the right policies, the unprecedented prosperity of the late 1980s and early 1990s can be brought back to life. All it takes is an open, aggressive free enterprise system.
As the late Jean Paul Getty once proclaimed, “The future of American business, of the American people–and, indeed, of the entire free world–lies in the perpetuation of a progressive, far-sighted free-enterprise system guided by progressive, far-sighted businessmen who will reap their rewards from improving the living standards of all.”
The local government cannot create prosperity by itself. The government can only allow the private business sector to create it for us all. But in order for the private sector to flourish, the right economic incentives must be put firmly into place.
To promote maximum economic growth, the Foreign Investment Act of 1997 must be repealed immediately. This must be the first priority of the newly elected and re-elected legislators. The $100,000 security deposit discourages foreign investment and smothers economic growth. It has made the Northern Marianas poorer, not richer. Save the Commonwealth. Eliminate it.
To attract wealthy investors (progressive, far-sighted businessmen), we must also scrap the recently enacted inheritance tax, which was specifically enacted to loot the Larry Hillbloom estate.
Since successful businessmen contribute to a successful economy, the CNMI must make every effort to attract these entrepreneurs. Successful businessmen are not enticed by high taxes and restrictive regulations. We must offer them maximum economic freedom instead. If we open up the local marketplace, they will come, invest and stay, making the CNMI a better, more prosperous, place.
Larry Hillbloom was one of the CNMI’s most successful businessmen. He came to the CNMI because of our liberal tax incentives. Those alluring tax incentives no longer exist. It is time we restored and extended them, so that other entrepreneurs like Mr. Hillbloom will see fit to make the CNMI their home. All of us would benefit as a result.
The CNMI does not have lucrative natural resources. Apart from imported labor, we do not even have an adequate skilled labor force. Our best resource is freedom–if we allow it.
Economic freedom is not like gold or oil; it is better than gold and oil combined. It need not be mined or harvested–merely allowed.
We can allow it. We can create it. So much of the world goes without it; the whole world will come to us if we allow it to flourish on our fair islands. Economic freedom–this should be our new direction.
