Uninstructed lawmaking
THREE things to remember when discussing the CNMI’s current (latest) financial and economic crisis:
1) Public policies will always have consequences that are unintended or unforeseen.
2) “Solving” a long-standing “problem” usually results in a new — or worse — problem. If we’re “lucky,” the “solution” would be utterly useless and not change a darn thing. (See the anti-blighted properties act.)
3) Government and politicians operate on a set of incentives vastly different from those of an ordinary household or a business entity.
In any case, many of the challenges faced by the CNMI are the direct result of government (local and federal) mandates. And yet for many of us, the preferred quick-fix is more government “solutions.” (The government, with all its agencies and offices, cannot enforce its anti-littering act, among many other laws. So the “solution” is universal garbage collection, which will be implemented by the same government. In other words, out of the frying pan and into…the bonfire.)
139 years ago, a British philosopher, Herbert Spencer, reminded his compatriots that uninstructed lawmaking causes more harm than uninstructed medical treatment. This, he added, is clear to anyone who has studied history.
But today, who has time to study history? Apparently, not even those who want to change its course.
Political math
THE CNMI government is running out of money because the economy is down. Government collections cannot keep up with its expenses. It has not been paying many of its vendors so it can continue to pay the salaries of over 3,600 employees hired by government departments, divisions, bureaus, agencies, offices and programs, many of which are redundant and/or duplicative if not pointless.
Instead of reducing costs — which is what a household or business entity would do in a similar situation — the government would rather take more money out of other people’s pockets.
“Given the situation that we are in,” a lawmaker said, “our hands are pretty much tied.” Meaning, it is in their political interest to maintain a bloated, wasteful government. Why? Because the largest voting bloc in the CNMI consists of government employees and retirees — and their families.
For sale: snake oil
CONSIDER the proposed tax on imported betel nut and lime. H.B. 23-41 states that chewing betel nut and lime “contribute[s] to higher risk of developing oral cancer.” Hence, there is a need to “minimize the development of such a malignant illness….” Wonderful! Who can argue with such a lofty goal? The bill, however, would impose a tax on imported betel nut and lime only. If the tax takes effect, it is likely that “chewers” will simply switch to local betel nut and lime. And how would that “address” the concerns about oral cancer? But no one’s talking about this not-so minor detail. Instead, many are expressing support for the bill for something that it will not do!
And no one is mentioning that the bill itself has spelled out its main intent: the tax “would be a great financial opportunity for our Commonwealth to exploit such avenue to gain much needed additional revenues.”
There you go.
Meanwhile, the CNMI government’s continued failure to live within its means is compounding its mostly self-inflicted financial crisis.
Soon, it would be like a drowning man pulling us down with him.
