It was also pointed out that my figures did not include the benefits for survivors of retirees ($5 million); disabled beneficiaries (1.9 million); and costs to cover administration of the Fund ($4.451 million). According to newspaper reports in FY 2007, the Fund expended $76.894 million. Updating these figures makes the impending disaster even more catastrophic.. Instead of $12 million, it becomes closer to $46 million! CAN OUR ECONOMY AFFORD TO LOSE $46,000,000? Voters, we simply can’t permit this to happen if we intend to live in the CNMI. DEMAND A PLAN!
Another aspect of this disastrous impact was suggested by my friend, Bill Stewart. It’s called the “trickle down” or multiplier effect. In the past, I have recommended that consumers who are residents of the CNMI shop at retailers that are owned and operated by local companies with local workers, the reason being that these companies pass on your spent dollars to their employees, who in turn spend their salaries, locally, for their needs. These retailers then pay their employees, who spend their salaries; ad infinitum. Bill is a very smart and very busy man, but he said if he can find time, he’ll calculate this multiplier factor as it is affected by retiree expenditures in the CNMI. He has asked Mark Aguon for the necessary statistical information to do this calculation. MARK, PLEASE ASSIST! His prediction, I’m sure, will demonstrate that the loss of retiree dollars means we better start our farms and hope for rain. As I write these words, the thought occurs to me, “Do you suppose that the reason more people are not worried, is because they expect Uncle Sam to bail us out?” That’s repugnant. We voted to become a contributing part of the American political family and now we’re going to ask for a bailout, because our local politicians have failed us? Have we no pride?
A third impact that was not included in my previous letter was posed by this question. “What about the money that retirees spend other than at the retailers?” Retirees have savings and checking accounts at banks. Retirees buy automobiles from private sellers and make loans to do so. Retirees pay life, health, auto, and home insurance premiums. Retirees pay for cable TV, telephones, internet access. They go to barbers and beauty salons. They put advertisements in our newspapers. They pay for utilities. Retirees hire workers to fix their broken possessions. Retirees pay off mortgage loans or pay rent for housing. Retirees pay tuition for themselves or their relatives at NMC. No retiree income and all of this stops.
It’s time for the voters to reiterate these famous movie lines: “We’re mad as hell, and we won’t take it anymore!” How do we stop this looting of the retirement system? We ask every potential candidate in the next election for a detailed plan on how he or she intends to save our retirement system. No plan, No vote. For those that are currently in an elected, executive or legislative position, don’t re-elect any who have not done something to alleviate this situation. Our legislators must enact money-generating bills. They must also legislate decreased government spending for each other and for members of the executive branch. If your congressman is not doing so, ask him/her why? Do you realize that approximately 10 percent of the population of the CNMI works for the government? Would you be willing to use your tax rebate to save our economy? Yes, I say, but only if I can see progress being made in decreasing government spending.
ROGER N. LUDWICK
Sadog Tasi, Saipan
