The talk of an increase to Guam's minimum wage
continues to separate many a businessman and policy maker on what is becoming a
major campaign issue. In my years of observing Guam's election cycles, it is my
humble opinion that this is the absolute wrong message at the wrong time. With four months until the primary election,
this particular issue is not creating any real traction that Guam's elected
officials think that it is making. Raising the minimum wage is a fight that is
already waging by federal lawmakers in Washington D.C. There has not been a
federal minimum wage hike since 2007.
When that occurred during the Bush Administration, local lawmakers
seized the moment to placate the 15,000 or so people who were making the
minimum wage and came off with a fizzle.
The argument then, as it is now, remains simple-raising the minimum wage
will stifle job creation. Plain and simple.
The local measure to phase in wage increases over the course of the next
three years boosts the wages of 17,514 people.
Local businesses are saying
publicly that if this bill passes, they will cut jobs and employee hours. Many
are asking that impact studies of a wage hike be completed and heeded. While some local groups like the Guam Women's
Chamber of Commerce and the Guam Chapter of the National Association of Social
Workers are in support of the measure, their influence on this proposed law is
chafing many other advocacy groups like the Guam Chamber of Commerce, the Guam
Hotel and Restaurant Association, the Guam Bankers Association and the
Employers Council. Simultaneously, toss
in a GOP-led initiative to roll back Guam's Gross Receipts Tax and now we have
a recipe for confusion for each of the 46,255 registered voters on Guam to
consider this cycle.
The spin on this issue is fast and furious.
But why?
There is an issue more pressing with a larger economic impact that
stands to drive a further wedge into what was being touted as soon to be our
number one industry-the military. Today
the House passed the FY205 Military Construction Budget that earmarked $128
Million for Guam. The work is considered
pretty fast for Congress who has passed the first piece of the federal budget
pie quicker than any time over the past decade.
But the budget comes as the final environmental impact statement for the
Guam Buildup is released this past week and residents are oblivious to the
reduction to the program. The new plan
calls for all the buildup of the III Marine Expeditionary Force inside the
fences at Andersen Air Force Base and NCTS Guam. The last remaining hurdle-a
firing range. Now many have diverted their
attention from the minimum wage debate to jump on this FEIS and back
again. Our collective inability to
support the US mission in this part of the world will see more than just a $500
million budget cut in military spending from last fiscal year.
It is this
blogger's opinion that uninformed policy makers and the incumbent spin doctors
will torpedo this once anticipated and long awaited boost to Micronesia's
economic prosperity. I scratch my head
wondering what these folks are thinking to push back on the Guam Buildup-now
called the Pacific Pivot.
With bond
issuances, major planned capital improvement projects and a willingness to
further expand our economic base, these less than desirable positions by policy
makers and the loud few will certainly cause more harm than good to our island's
economic future and relationship with our partners of this region.
Voters take
heed.