New labor shock, really?
Tidings that the CW number has maxed out for this year “shocked” the NMI to its wits. Understood how this would negatively impact midsize and small businesses or impending investments. But U.S. Public Law 110-229 has been in the books since 2009. Do you still blame USCIS?
The impact is exacerbated by the lack of a fully thought out plan detailing our needs. It would have meant realistic planning with all issues considered. How do we navigate this and other equally vital components without a unified plan?
In the mid-’80s, a few of us wrote extensively opposing federal takeover of immigration. It was about our “economic freedom” as a fledgling territory. But too many politicians were rather mute and treated the issue with inconsequence.
Some have even seen fit to ride as white knights on the coattails of former congressman George Miller completely ignoring the consequence of the federal takeover of immigration control on the local economy. There’s no vision and pols settled to watching black and white television instead.
Here we are today trying to make apples and oranges on an issue we ignored long ago. It is even more appalling the pretense of being “shocked” by what’s coming down pike resulting from internal inadequacies!
If you will, U.S. Public Law 110-229 was designed with the intent to bankrupt the NMI in much the same way the U.S. did Puerto Rico when it killed a thriving pharmaceutical industry. The Caribbean territory is drowning steadily with a debt of some $72 billion. This as the U.S. Congress now debates how to help Puerto Rico it helped bankrupt!
We had $2.1 billion garment industry that was generating hefty sums in local revenue. Combined with tourism we reached the peak years of the mid-eighties. We even told the U.S. Congress in 1993 no more grant funds.
But Congress killed the industry via the takeover of local control of immigration. You emasculate the NMI of immigration control and it instantly derails the labor component. It presents a perfect set up to begin the march towards permanent bankruptcy.
Dizzying the combined internal inadequacies saddled atop a federal design to bankrupt the islands. And we didn’t stand up in defense of our economic freedom. We’re now at a strange juncture with dropped jaws quizzing, “Now what?” Please leave some room for aftershocks too!
Bankrupt utility agency
Other than labor shortage shock, there’s also the more vicious electrical shock of the utility agency going broke anytime soon. It won’t have funds for operations, capital improvement program (water and power emplacement) or money to pay its debts.
It’s another instance where we display the lack of vision by planning ahead what are the needs of the NMI. It’s all ad hoc or engaging in Band Aid solutions over the benefits of long-term planning. Recalled as secretary of DPL giving the utility agency some $3.5 million through MPLT to upgrade the power plant at Lower Base. That was the extent of power improvements since.
The drought season isn’t helping with wells going dry all over. Is there anything in the drawing board to address and resolve the creeping, crippling water problem? Would water and power be sufficient for new projects now in the wings when mirrored against a bankrupt utility agency? Hello? Is EVERbody home?
Stagnancy wrapped in negligence
Stagnancy is like sediment at the bottom of the pond. It stays there, doesn’t move, algae takes over, decomposition begins, it stinks, it’s unhealthy! It’s a perfect description of the local economy where wages and salaries haven’t changed for the better for over 20 years now.
Is there a plan to change the toxic water or quality of life in paradise? The answer is in the affirmative and it takes courage to wrestle the issue to the ground. It isn’t a radical answer per se but the only practical solution to helping hard hit employees and their families!
A realistic issue making addressing the matter one of urgency: For instance, a few years ago a can of tuna sells for $0.99 each. Today, the same can of tuna costs $1.69 per can, an increase of nearly 70 percent. Question: Did wages and salaries increase at the same time to meet the rising cost of basic commodities or overall cost of living? I wonder what’s the increase in other basic goods?
You are the best person to answer this question! If you’re in the lower category of the income bracket then you know you have to endure paying most of the increases over the higher paid employees. I’m talking of the poorer sector slammed every which way by the spikes in the price of goods annually.
Moreover, over 51 percent of employees earn salaries that fall under federal poverty income level! Is this a reason to sleepwalk the issue in perpetuity? If you’re an evil genius from imperial Capital Hill, have you an answer to alleviate forced abject poverty resulting from the lack of leadership?
Is the distance between the hill and villages the glorified divide that insulate you people from coming to terms with hardship among the multitude thus the continuing neglect?
Setting examples: In June of last year the Public Auditor issued an ethics code advisory telling elected officials to observe the mandates of the Ethics Act or they’d be dealt potential criminal and civil liabilities.
Remember the Singapore trip that was aborted after the OPA advisory was issued? The prevailing adolescent attitude slides into arrogance boasting they could do anything they please. It’s hybrid seeds germinating and growing quickly in the Garden of Corruption here.
John… Great article. Certainly the NMI is in a pickle. Clearly there are insufficient revenue streams to be able to maintain things as they are. Eventually, an economic collapse is inevitable if the status quo remains. Perhaps there are some short term solutions.
1. Increase BGRT by 3%
2. Offset the BGRT paid by businesses by introducing a 3% sales tax on goods. Last year 140,000 tourists. If average dollars spent on goods was 1000.00, that’s 4 million in revenue. Add sales taxes paid on goods by local consumers, that could be a combined revenue of 10 – 15 million a year.
3. Time to re-evaluate and get rid of article 12. This could be a HUGE revenue generator by implementing property taxes. Give the locals finally a full chance to decide what they want to do with their land. Sell it, pay tax on the sale. Buy it, the buyer pays a tax on the purchase. Even more added benefits. Property owners now have equity.
4. Sell 15 year bonds for special projects that the government does not have funds to pay for.
While what you say has merit, I have apprehension with the art 12. I would like to see that gone BUT with some type of inclusion that the lands can not be sold to foreigner only to US residents. Residing in the CNMI for a certain amount of time prior to sale. Also in the instance of one of the couple being a foreigner they must live on the property with the property being handed down etc.
In the case of a business that would have to be worked out with provisions such as if it is a facility such as a Hotel complex etc.
Such as the possibly after the expiration of a lease the property can be purchased with restrictions on reselling. Something along those lines.
Years ago in Hawaii I watch an economic boom in the 80’s involving the Japanese buying up so much land on all of the islands, much was bought and resold almost immediately. A lot of prime land was lost and also destroyed, mostly on the Big Island of Hawaii and also on Maui. The bauble finally burst which caused great devastation.
We have to be careful specially with a situation as we have now, without Art,. 12, the Chinese would be buying up all of the property and eventually selling it again to other Chinese and all would be lost forever.