The administration and its legislative allies say they have solutions: casinos, marijuana legalization and a pension obligation bond. (I also expect them, one of these days, to propose a constitutional amendment allowing the government to borrow money for its operations.) Critics say these won’t solve anything and will only create more problems in the long run. “So what do you propose then?” the casino-pot-POB camp asks. “All you do is criticize and complain without offering alternatives.” This is not true. So many other solutions have been offered and discussed already but no takers so far. Which is not surprising. Given the gangrenous state of the CNMI government’s financial condition, real solutions will require amputations.
The government lacks money because it spends too much and has so many obligations. The solution is to reduce spending: cut the size of government, identify and abolish nonessential departments, agencies, programs and positions, privatize, reduce salaries, perks and benefits. Simple.
Not really. There is no political will to implement any of these measures. And there is no political will because there is no support for any of them from voters. The only ones supporting laying off people and slashing salaries are those who want to be exempted. What you hear from the community is: Cut the size of government, but don’t you dare touch my job; and by the way, I need a raise.
So now every time I’m asked, “What are your solutions?” I reply, “What do you mean by ‘solutions’?”
What most of the people want is a return to the mid-1990s, just before the economic implosion in 1998. They want plenty well-paid, work-free government jobs with regular pay raises, travels, free vehicles, free gasoline, hassle-free medical referrals to Hawaii that include generous allowances for escorts, homestead lots and scholarship grants on demand, fat pensions, rebate and EIC checks, cheap and easy to hire maids, farmers and other “menial” workers.
All this costs a lot of money, and the CNMI government in the past seemed to be paying for most of them because garment factories were raking in a billion dollars a year and over 700,000 tourists were visiting the islands. But even back then, it was obvious that the government’s First World salaries and benefits could not be sustained by a Third World economy. (A Tinian senator, in those days, had close to 40 full-time employees. Go figure.) In 1995, it was already announced all over the world that beginning on Jan. 1, 2005, garment quotas would end. Saipan garment factories, starting on that date, would have to compete with factories from countries that were paying workers way lower wages compared to the CNMI’s then-$3.05 an hour. In other words, Saipan factories, beginning in 2005, would have to shut down and move to cheaper locations.
So how did the CNMI government prepare for this foreseeable future? It brought in more garment factories and nonresident workers, hired Jack Abramoff, further expanded the government and acquired more unfunded obligations along the way. Everyone was enjoying the seemingly never-ending party that no one asked who would pick the tab.
And so here we are. You say you want solutions but what problem do you want solved? The economic crisis?
There is no return to the mid-1990s. Garment factories have already moved to Cambodia, Honduras, Vietnam, etc. Most of the tourists are headed to Guam.
Casino and marijuana proponents claim that their “solutions” will do the trick. And how is that mathematically possible? The CNMI government has hundreds of millions of dollars in obligations, and this figure grows every day. How can having a casino on Saipan and legalizing marijuana bring in that amount of money and allow every public sector employee to be retained by the government which will then end austerity measures, pay the Retirement Fund on time, the people’s power bills and even airfare to Guam?
The problem with casino and pot proponents is that their pitch sounds too good to be true. And we all know, or should know by now, that anything that sounds too good to be true is not true. What they offer is not a solution, but a delusion.
Will you ask an accountant, “How can I continue spending money I don’t have based on my belief that I could win the lottery?” Of course not. But most elected officials are now telling you that they know the answer to that question. And a lot of you will believe them.
In your heart of hearts, however, you know that there is no silver bullet, no quick fix to this mess. You know that the party’s over. It’s now time to work harder, cut expenses, save money and find ways to improve your — or acquire new — skills so you can earn a bit more. The government must live within its means and prioritize key public services. Moreover, elected officials should work closely with the feds to create an economy that may be small but is at least sustainable.
We have to realize that to get what we want in this time of crisis, we must learn to want less.
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