Single-legged economy

The economy is in quadruple depression—four times worse than normal recession—so do we prop it with hopeful rhetoric then sleepwalk it in grand mañana as we’ve done in recent past? The persistent fiscal crisis doesn’t leave much room for any fancy footing. Stagnancy and redundancy have become thematic terms, stirring uncertainty in most quarters.

Must do something better than hopeful promises. The deepening economic crisis doesn’t begin nor end with “biba”. Try “biliba”! The NMI fiscal obligation over the next decade is wrapped in gloom of far more for far less. In other words, how quickly could we see major strides in growth to meet mounting obligations? Is there a realistic plan or do we continue second-guessing our foggy trip via ad hoc spouts?

A widely known economist has written a book focusing on “economic principles for prosperity.” It’s for politicians wishing some rudimentary understanding of the issue. “Often when people talk of prosperity, they conceptualize it in very narrow terms. For them, prosperity simply means money.

“Having money is no doubt a critical aspect of prosperity, but it is just that—one aspect. Other aspects of prosperity include a robust job market where employment is available and opportunities for advancement abound, an employment environment where upward mobility is based on hard work and on the acquisition of formal and informal education and training, and where invention is encouraged.

“In a prosperous economy, individuals are able to innovate, creating new and better products, services, and ways of doing things. By teaching economic principles, explaining the institutional prerequisites for prosperity, and shattering economic myths, politicians would be equipped with the intellectual tools they need to achieve a more prosperous” NMI if, and only if, they read the book and understand its substance. It’s still is the economy, lai!

Inadequate basic infrastructure

The one major issue geniuses upstairs must resolve is what economic planners call “infrastructure deficit” or inadequacies. Unless water, power, sewer and roads are emplaced, nothing much could move forward in building billion-dollar facilities into reality. Placing infrastructure has been and still is the established mode of building economies anywhere between Japan and Asia.

In it simplest form, it’s now policy to build casino on Saipan, right? Yet the big boys ignored ascertaining that a plan is at hand that secures land for this purpose. They also failed to ensure that basic infrastructure is emplaced (up north, middle or south) to begin construction of Best Sunshine’s 4,000-room integrated casino resort.

Did we have to demonstrate our forte of placing the bull before the cart time and again? The entire exercise is appallingly dizzying. I have every intention to quiz the big boys why the negligence in the non-identification of land and lack of basic infrastructure. Or have they also subscribed to perceptual “Air Bridge”? Humiliating!

Real challenges

I get catatonic, if not apoplectic or both, when reviewing current court-stipulated orders that include paying the settlement fund annually and other obligations. It’s a given that a budget tells us what we can’t afford, but it doesn’t keep us from buying or spending money we don’t have in the treasury. To spend beyond it instantly turns into deficit spending. Who pays for such indecision? Isn’t it you and I, the taxpayers?

We all must exercise passionate advocacy how our taxes are spent for none of us is ready to be deceived and shackled time and again by those whose grand failure brings vicious hardship against “we the people”.

You see, between this fiscal year and 2024, the NMI must pay the Settlement Fund some $11.22 billion. This doesn’t include paying for some $779 million in unfunded liability for current retirees and other urgent bills. Mirror this against current annual revenues to get an understanding of our fiscal posture for the next decade. It makes placing this issue prominently on our fiscal radar screen.

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There’s the absence of a set of plans addressing funds for Capital Improvement Projects or how much is available for it and specific road map to fast track their emplacement. But it’s a must-have set of documents to move things forward, allowing for refinement as we move along.

We’ve spouted lofty plans and even spin the suspect economic rebound presented as though a set of facts. It isn’t and far from it. Our pockets tell an entirely different story of conditions below I Deni`. Call it reality check!