I BELIEVE a minimum wage increase should be firmly opposed on the grounds that it would significantly harm our already ailing economy. A minimum wage increase at this precarious time would be unbearable for many struggling businesses. It would create unemployment, discourage investment, undermine profitability and ultimately reduce government revenues in the long run. It may even prove inflationary.
I make these assertions based on my understanding of economics and my appreciation of economic liberty. I am totally opposed to mandated wage increases, not because I am connected to any special interest group but because I believe they are wrong. (Incidentally, I am no longer connected to the garment industry or any of its major backers.)
Having said this, let me also say that if a minimum wage increase is inevitable, as the current political climate now indicates, then I would not be in favor of exempting any section of our economy. In other words, if the minimum wage must be increased, then it should be increased for ALL industries, for tourism as well as textiles. The garment industry should not be exempted.
It stands to reason: If the wage increase would be harmful to the garment industry, as I believe it would, it should also be harmful to other industries as well, though perhaps not to the same extent, due to the garment industry’s extensive labor needs.
Let me be clear on this major point: I believe in free enterprise for all—not just for the select few. I am pro-business, not “pro-certain businesses.” The garment industry should not get a free ride. It should not be subject to any special treatment. The garment industry should not be subsidized by the government or by other private industries. The CNMI should not engage in corporate welfare when it comes to the garment industry. Why should other struggling businesses have to pay higher wages and higher taxes while the garment industry essentially enjoys a free ride by comparison? Why are garments so special? If a minimum wage increase would not be harmful to small business, why would it be so devastating to Big Business?
If the current administration believes that wage increases would be good for workers, then why would it not be good for garment workers? Indeed, if the garment industry gals benefited from a significant pay raise, perhaps more of them would resist the temptation to engage in illicit nocturnal activities to supplement their meager incomes.
Frankly, I am quite surprised that Rep. Stanley Torres is not up in arms over the administration’s proposal to exempt the garment industry. (Did Big Willie and Steve Pixley muzzle our little pit bull?) After all, Mr. Babauta campaigned on the “no special interests” platform, yet he now seems willing to concede to the “avaricious interests” of the much maligned garment industry. How on earth will he explain the garment wage exemption to his pal Danny Akaka, who ostensibly promised to revoke federal takeover legislation on the grounds that Babauta would “self-federalize” for him?
We have to wonder how garment critic Ken Govendo now feels about his man Babauta for apparently caving into garment special interests. Please, say it isn’t so.
CHARLES P. REYES JR.
Gualo Rai, Saipan
