Immiseration by any other name
THIS is the most important detail CNMI lawmakers should remember whenever they want to “photo-copy” wage/tax measures introduced at the federal or state levels: those bills’ starting point is the U.S./state economy. The U.S., which has a population of over 300 million, has the world’s largest and arguably the most dynamic economy. (In 2019, the CNMI’s GDP was $1.182 billion. America’s? $21.43 trillion.) Moreover, the economies of the states themselves vary. (In 2019, if California were a country, it’s economy would be the fifth largest in the world.)
In the CNMI, especially in this horrid economy, legislation that would impose new fees/taxes or increase the other costs of doing business (wages, benefits) should be discussed and reviewed and studied thoroughly. The people who would end up paying more should be consulted and heard. Lawmakers, your intention may be good, but you may end up harming the very same people you assume would benefit from the goodness of your heart.
Incidentally, the likely consequences of mindless government-imposed wage hikes are reduction in work hours and/or benefits, downsizing, job losses. These, clearly, are bad for workers and their families. As for mindless fee/tax hikes — these are additional burdens on struggling businesses which may have to shut down or lay off workers. Again, not helpful to anyone.
Some may say that “if those businesses can’t afford wage hikes and/or higher costs then they should shut down, and never mind the revenue they and their employees generate for this bloated, cash-strapped, debt-ridden but still overspending government.”
If that’s your “argument,” then please say it out loud so everyone, voters included, would be duly informed that your ultimate goal is CNMI-wide impoverishment.
Wrap it up already
THE previous House leadership created a bipartisan special committee to “investigate the governor’s public expenditures” in July 2020. The committee obtained several documents and records. It held a series of hearings, and summoned government officials and witnesses to testify on documents and records pertaining to the governor’s expenditures. Before the year ended, the then-leadership drafted a report recommending that “the relevant documents, testimony and records…be transmitted to the CNMI Office of the Public Auditor as the Constitutional body entrusted with the audit of the receipt, possession, and disbursement of public funds.” But the then-minority bloc members said the investigation should continue. (They also posted their findings online dated Jan. 6, 2021.) And because they now run the House, their wish was their command.
In April 2021, they announced the “re-opening” of their “investigation” (which already had a foregone conclusion). In June 2021, a House committee with one token Republican member (who, today, is no longer affiliated with the party) officially “re-opened” the “probe.” The year is about to end and so finally, the committee has subpoenaed the governor and set a date for his testimony. His legal counsel objects, but we believe the governor should appear before the committee and get it over with. Afterward, the committee can come up with a report and a recommendation (that will surprise no one); and the House, finally, can focus on the CNMI government’s numerous financial obligations. These include government payroll, medical referrals and pension benefits. And then there’s the dismal state of the local economy, specifically the tourism industry.
Chop chop!
