Saipan — A U.S. political writer complains that the Harris-Walz economic plan is unsound. Others say the same thing about the Trump-Vance stance on tariffs and immigration. It’s also election year in the Commonwealth of the Northern Mariana Islands, and hearing some of the candidates talk about the economy has given us more reasons to feel disheartened.
Since ancient times, elections have essentially been bidding wars. The candidates who sound the most credible when promising the most goodies usually win. Politics thrives in a swamp called economic illiteracy. Not surprisingly, politics attracts good-hearted people who are bad in math.
As H.L. Mencken would put it: “[T]he government…consists of a gang of men exactly like you and me. They have…no special talent for the business of government; they have only a talent for getting and holding office. Their principal device to that end is to search out groups who pant and pine for something they can’t get, and to promise to give it to them. Nine times out of ten that promise is worth nothing. The tenth time it is made good by looting ‘A’ to satisfy ‘B.’ In other words, government is a broker in pillage, and every election is a sort of advanced auction on stolen goods.”
Like their predecessors, the CNMI’s current leaders — sworn in early last year — have promised to make things better. So far, they haven’t. One of the few long-time Japanese investors who are still here noted that this year is worse than the previous one, which was an “annus horribilis.”
Recently, the governor said we’ll be OK again…in the next two years. How does he know? He didn’t provide specifics. Meanwhile, he wants us to pay higher taxes and/or fees.
In this economy, tourism numbers are still below pre-pandemic levels. Businesses, small and big, are struggling. Work hours have been reduced, workers have been laid off, and many people are leaving the islands for good. So why not take more money from businesses, consumers, and other taxpayers so the government can continue maintaining numerous redundant departments, divisions, bureaus, agencies, offices, and programs with overlapping duties. Genius.
Of course, this assumes that taxpayers, like sheep, will simply stand still and allow the government to fleece them. The administration and its legislative allies are hoping that consumers, for example, will continue to buy products even though they will cost more because of the taxes imposed on them. Because that’s what normal people do, right? If a commodity becomes more expensive, we’ll still buy it, right? We won’t reduce our spending and/or look for cheaper alternatives, right?
Asked by a CNMI senator if the government would collect more revenue if they increase construction taxes, the finance secretary admitted that their projections are based on…assumptions. But they’ll find out whether they were right after the tax hike is imposed and collected. In other words, it’s a shot in the dark, but what the hell, let’s try it.
And if they’re wrong?
No problem. Once their tax/fee hike measures are enacted, the government can adjust its revenue projections to justify their preferred levels of (over) spending. This will allow the government to continue obligating money it may not have. In other words, deficit spending. Good luck, government vendors.
“We are ready to move forward,” the new governor said in his inaugural speech almost two years ago. Today, his administration and its legislative allies are still blaming the previous leadership for the state of the local economy and government’s financial mess. And except for raising taxes and fees and begging for more federal funds, they have absolutely no idea how to move things forward.
Understandably, there are not a lot of candidates challenging incumbent legislators this year. Many (sensible) politicians are aware what they’re up against if they get elected in November. They will be told by the administration that they only have two choices: to raise taxes/fees or reduce the size of government — i.e., lay off government employees, i.e., voters. Government employees and retirees are the CNMI’s largest voting bloc.
As for voters, they should ask themselves: Did an election ever result in immediate progress? Did things change for the better right away after electing or re-electing politicians? The answer is “yes” if you’re a supporter who will be rewarded with a government job (preferably federally funded), contract and/or other favors only the government can dispense. But for the rest of us ordinary folks, what do we get? “New” leaders performing the same old song and dance routine.
Historically in the CNMI, improvements have only followed an economic rebound. Reviving the economy, in turn, depends on attracting more tourists and securing new major investors.
In a 1997 interview, then-CNMI Gov. Froilan C. Tenorio said he had to discontinue the medical referral program in 1995 “because we didn’t have the money.” “Now,” he added, “we have it.” Why? Because the local economy was booming. “This is the thing,” he said. “I just have to tell the people, ‘Look, if you want me to provide you the services that you expect from the government, then you’d better favor economic development.’”
In contrast, it appears that the current CNMI leaders believe higher taxes and fees, coupled with increasing dependence on federal handouts, are the “solution.”
In the early 1990s, then-CNMI Gov. Larry Guerrero told the U.S. Congress: “Don’t send us back to a coconut economy. Don’t make us a federal welfare state again.”
For his part, his successor, Froilan C. Tenorio, said: “Federal subsidies do us more harm than good because it perpetuates our dependence on the federal government and it comes with too many strings attached.”
Today, the CNMI governor tells the feds, “I am here to appeal to all of our federal partners, to support the Commonwealth’s efforts to reach stable ground and ultimately thrive — fiscally, economically, and socially.”
More like moving backwards.
Zaldy Dandan is editor of the CNMI’s oldest newspaper, Marianas Variety. His fourth book, “If He Isn’t Insane Then He Should Be: Stories & Poems from Saipan,” is available on amazon.com/.
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