Lack of critical thinking

When we lack the ability to engage critical thinking, refuse to connect the dots, or simply fail to use common sense, the NMI sets the path for ill-conceived policies destined to inflict more harm than good.

In this connection, we again see the popular plan to raise the minimum wage as if the increase would fall from the blue skies of this hellish hole. Isn’t it that it involves arithmetic rather than half-cocked moral narratives?

Best-selling author and columnist Larry Elder related in his piece, “Living wage is as wrongheaded as the minimum wage,” that after all the studies and the “near-unanimous opinion of economists—and even after the negative real-world effect of the minimum…” it remains popular. He said that most proponents “don’t know about the vast body of research that shows the harm.”

He noted that two of the most well-known liberal economists have criticized the minimum wage and its twin, the living wage.

“Jonathan Gruber, the architect of Massachusetts’ Romneycare and co-architect of Obamacare, said in 2011: ‘Let’s say the government rolled in and set a minimum wage. …Workers want to supply more hours than firms want to hire. …You end up with excess supply. And we call that excess supply ‘unemployment.’”

The issue raises questions whether the planned increase is supported by a study. Did the study take into account Fitch’s and Moody’s assessments of the CNMI such as its debts, obligations and ability to pay. Did the studies say the CNMI’s economy is poised for major economic growth?

Didn’t Fitch just downgrade Imperial Pacific’s bond rating three layers below normal bond level? How do you see this and isn’t it a serious indicator that the economy may be headed south, if not already?

These are red flags that the elected elite must learn to read, comprehend and mull over as it braves juvenile plans to recklessly increase minimum wage. Yes, I’ve pounded the lack of familial income increase over the last 10 years. But the answer isn’t in MW increase but healthy investments that spur wealth and jobs creation. If this is missing, then any plan to increase wages and salaries is a perfect recipe to ruin what’s left of the local economy. Did you get that pal?

Financial posture: The announcement last year of an additional $43.3 million in new revenue was instantly wrecked by the admission of some $53 million in the current administration’s cumulative deficit. This doesn’t include other long-term debts so conveniently skipped!

Was this deficit paid as mandated by the NMI Constitution or was it shoved aside until further notice? With suspect financial posture how does the NMI meet other debts and obligations?

The financial assessment by two credible global economic firms (Fitch and Moody’s) are major red flags the nimble minds on the hill must mull over 24/7 with the view to saving some for that rainy day. Nothing in what we see as “improvement” is sure-footed. A lot rides on prevailing circumstances like teeny waves landing along the shore. None is supported by a fully thought-out plan by this administration beyond ad hoc disposition.

Is this troublesome? Definitely! Add the “solutions driven” team being taken aback by how its treasured holy grail in the casino industry is falling apart. Does the team have any clue what it means or “not yet, already?” Does it plan to stay home someday soon to reassess that there won’t be any money for their junket trips too? Or is it another grand case of “not yet, already?”

History with minimum wage: The shift from traditional to a money economy started gathering steam after the war. It was fine during the naval administration that paid $.75 an hour. When the Trust Territory government took over, minimum wage took a nosedive to $.16 an hour. This prompted the move for reunification with Guam, primarily because it paid $1 an hour then.

Voters in Guahan soundly rejected the CNMI’s aspiration in the late ’60s. There was no mention about culture and other collateral issues. It was the dollar! We also never had any clear view how the NMI would pay the same salary even with reunification. It means it must come out of our own tax base, isn’t it? It would be wrong to impose this cost on the backs of Guahan taxpayers, right?

In other words, it was a moral pleading that had nothing to do with arithmetic and source. It’s the usual blurred vision that goodies like minimum wage simply falls out of the blue skies of paradise.

Well, last I checked there’s Raffy and Biktot taking global junkets! Raffy is now cooking red rice in D.C. to feed Trump while Biktot is cockfighting in Manila as Arnie Pala` struggles to understand the latest bond ratings of IPI by Fitch and Moody’s. A`saina! Pretty soon “natting maaaneee, lai!”

Loss of focus: Whether you’re appointed or elected, you must take heed of what President Obama said in his farewell speech: Stay focused on your job so the consequence of your action is beneficial for the multitude.

Indeed, we’re in self-denial that our financial posture is headed deeper south as investments contract beyond our wildest imaginings. Contraction of investments means far less, therefore, up pops far less in terms of jobs and wealth creation. It only deepens the economic hardship at home.

It means family income would take huge cuts, paralyzing their ability to live within common decency! Is this the unannounced vision of the Republican majority or alleged solutions driven team?

Some sense of mindfulness is in order to ensure our people are not relegated further into the abyss of below abject poverty conditions. Get that pal or “not yet, already?”