Adverse impact of federal laws

The manufacture of major regulations so entrenched in Washington is ongoing. Have we done any monitoring to see that the 84 major regulations produced by the Obama administration are returned to Congress for further review?

At issue is the apparent disconnect between national policymakers, the White House, and folk in small-town America. The former has engaged in the approval of laws requiring preparation of major regulations by the latter. These translate into costly application, compliance, and a myriad of fees against small businesses.

We’ve seen it here when the federalization of immigration and minimum wage went into effect, adversely impacting private industries. The net result was business closure, the ripple effect being reduction in force or joblessness. It instantly displaced and ruined families who relied on their income from private industries for sustenance.

Given annihilating conditions from recent federal impositions, do we really expect gargantuan sets of regulations to encourage expansion and new business startups or wouldn’t the reverse be the exacting net effect? What’s even more infuriating is the imposition in absentia without the benefit of a long thoughtful process.

So out the window go small businesses that I venture to say employ about a third of employees Marianas-wide. The ultimate effect is the contraction of local revenue generation that now places a focus on whether to impose draconian austerity measure and reduction in force. The loss of nearly $30 million in revenue is horrendous for a fragile island economy.

****

Biz across country going after feds

A recent article in the Washington Times says that even the Obama administration acknowledges, “regulations affect employment and the economy.” Cass Sunstein, the president’s regulatory chief, said in the Washington Post article that he is “sensitive to the possibility that when there is higher unemployment, there could be a higher risk that people working in regulated industries may have to wait longer to find new jobs.”

If private industries aren’t reporting regulations as the reason for layoffs to the Bureau of Labor Statistics, therefore they must not be a problem. Said Don Curtis, “Much of the cost of regulation is concealed in higher prices for products and opportunities that we can’t pursue or jobs we can’t create because of added regulatory burdens. A study by the Small Business Administration found that small businesses like mine pay more than $10,000 annually to comply with federal regulations.”

Curtis is the owner of Forestry Company and chairman of the Florida chapter of the National Federation of Independent Business, Small Businesses for Sensible Regulations. He added, “Today, there are more than 4,200 new rules and regulations looming in the federal pipeline, 845 of which directly affect small business. For me, this uncertainty is unsustainable and only adds to the economic heartburn created by regulations already on the books.” Concluded Curtis, “Let’s halt unnecessary regulations and start bringing about regulatory reform. It might just be the best thing that ever happened to the economy.”

This is where the CNMI could rally behind private national organizations to rid the country of costly regulations that basically stifle or annihilate economic growth. Like small businesses across the country, small businesses here too need some form of resuscitation and we can begin by working via networking with private groups who see regulations as the single most devastating tools of unelected bureaucrats whose only worry is their biweekly loot.

****

Equal application of law

Interesting how some local businessmen feel they should receive favors as locals in terms of public land leases. As secretary of DPL, I’ve had to swallow my fiduciary duty and allow some locals through a needle’s hole because the big man upstairs wanted it that way. I went home frustrated that political interference has started creeping in.

Introspectively, how do I deal with other vendors upon their finding out that a certain lessee heavily in arrears was given a chance to continue to use public land? What’s this monkey business about “anchor” investors, sir? Aren’t other investors equally anchoring the same local economy now sputtering to death?

I’m also watching certain so-called land exchange that could end up as land grant. It’s a case of getting public land for nothing. And I have every intention to expose this soon. This administration has no respect for the spirit and sanctity of constitutional mandates setting forth the role and functions of DPL. It was this form of corruption muscling in that prompted my decision to resign at the end of my term. Oh, do I have tons of notes on corruption at DPL. Evidently, this should be an interesting chapter in the book I’m scribbling for posterity.

****

Five bucks is really good biz

I’ve gone into business establishments if only to feel the pulse of this vital sector. Most are cringing, grinding their teeth and pining for better days. I’m sure they’re equally wary that a brighter tomorrow has become as rare as good local mango.

But they stay the course hoping something would break for the better. “If we make five bucks a day it’s better than nothing at all.” This condition, however, is bad for everybody, employer and employees alike. “There are major obligations we haven’t been able to meet these days what with fuel and utility rates draining most everything we make,” said one business owner.

“Then there’s the unfair business practice on law enforcement fudging in favor of locals as to create a very disgusting uneven playing field,” said another. “When a boat operator collects from tourists, is he really reporting such income or do authorities turn the other way?” This mess needs fixing immediately so laws are imposed fairly on everyone!

****

John DelRosario Jr. is a former publisher of the Saipan Tribune and a former secretary of the Department of Public Lands.