Consequences cannot be avoided
THE main problem with the governor’s “pivot” policy is not its intent, however dubious its premise is. (It seemed as though the conclusion was decided first, and then the rationale was constructed around it.) No. The core issue is the lack of corresponding action to cope with its consequences, which the governor himself spelled out to the China hawks and other officials in Washington, D.C. “People are leaving the Commonwealth because of the depressed state of the economy right now, because of the major impact of losing close to half-a-billion to a billion dollars’ worth of economic activities,” he said in an interview with the Voice of America over a year ago, referring to the China tourism market.
As he himself has acknowledged, a virtually single tourism market — which is the (unintended?) result of his preferred policy — cannot sustain the island’s tourism-based economy and the CNMI government’s spending habits. In short, the “pivot” requires (painful) adjustments to the CNMI government’s budget.
Sadly, merely “requesting” and waiting for federal assistance in the hundreds of millions of dollars won’t cut it. The CNMI government has a mounting pile of bills to pay — now.
So, what happened to the promises to “live within our means” made by someone who described himself as a “fiscal conservative”?
Unsolicited advice to CNMI businesspersons
AS you may have noticed, the murky waters of politics have seeped into issues affecting the local economy, including tourism — which, since the TT days, has largely been a nonpartisan concern with a clear consensus: we need more tourists.
Today, political antagonists are on opposite sides of the current disputes, but what passes for arguments are circuitous, with both sides talking about different things.
Unlike politicians in office, however, your bottom line is directly affected by a seemingly endless economic downturn — for which you cannot ask Uncle Sam to bail you out. If you haven’t already, you may need to rethink your business plans. We can’t blame you, especially the tourism-related businesses, for suspecting that this administration is hostile to your very existence. It certainly feels that way. Let’s hope we’re wrong.
Meanwhile, watch out for your wallets.
The House remains pro-administration, and is partial to tax hikes. The majority bloc in the Senate is expected to be less influenced by the administration, but don’t be surprised if the Republican senators end up linking arms and singing Kumbaya with the newly minted Republican governor as they cut deals that include passing tax hikes.
When that happens, the business community should once again speak out loudly and clearly against such economically unviable measures.
Happily, in any case, the CNMI remains a functioning constitutional democracy that holds regular elections — the next of which is about 20 months away.
