However, a careful reading of the recently released draft environmental impact study done by the military as a critical guiding document for the military development planned for Guam makes it clear that is not true.
The military study determined money that will actually enter the local economy will have very little effect as Guam will experience low capture rates.
Capture rate is the term describing the portion of new construction or operational expenditures expected to circulate, or be captured, within the local economy.
Citing a large percentage of foreign workers and their high rate of remittances, limited military spending at off-base enterprises and an increasing trade deficit, the impact report drily spins technical data detailing how Guam is expected to lose out on the economic boon of the military buildup as it has been hyped thus far.
During the construction phase of the impending buildup, a considerable portion of labor is expected to come from off-island, mostly from the Philippines. Notably, H2 workers tend to spend considerably less of their earned income in the Guam economy, instead remitting large sums off-island to their place of origin, to support families who in turn take that money and circulate it in their economies.
Guam residents working on military-related projects are naturally expected to spend a greater deal at local businesses than foreign workers.
But, the exploding population of Marines and Army personnel, their dependents, workers to support the realignment and other projects, who are housed on-base are likely going to do much of their spending with on-base businesses.
Establishments operating on-base are mostly headquartered off-island and that is where those hefty profits margins will go.
Almost all of the goods needed to construct or operate military bases would not be produced on Guam. The island would capture much lesser value than often anticipated from goods shipped from off-island and onto military bases.
