Recently Trump commented that health care was an incredibly complex issue. I was dismayed at his surprise over the complexity of health care. Back when I was first out of college I took a course in medical economics. Even back then it was an incredibly complex issue. Medical economics has only grown more complex over the years. Many controversial government policy decisions are incredibly complex, which is why they are so difficult with which to deal.
Another complex issue that he talks about addressing is immigration. This is an issue that has been in the forefront of CNMI politics and debates for decades. It is near and dear to the people of Micronesia, including the CNMI. Over the next couple of weeks, I’d like to reflect on the issue, primarily as it applies to Micronesia, particularly the CNMI. Since this is Along the Way, I ultimately want to consider some of the moral and spiritual implications of the issues.
Immigration issues are part of a much broader process that is referred to as globalization. This term simply means that the world is increasingly interconnected and its people are mutually dependent upon one another. This is the result of computer technology, satellite communication, significant improvements in transportation and a variety of agreements among the governments of the world. This has allowed for a redistribution of labor and resources around the world. So that the products we purchase at the local Wal-Mart come from the USA, Russia, Japan, China, Bangladesh, Pakistan, India, Italy, Australia, Brazil and dozens of other nations. There has always been international trade but the advances in technology and transportation have made the process much more efficient and even allowed the manufacturing process to be spread out over vast distances.
On the positive side, this keeps prices down for the consumer and provides jobs and an economic boost to many countries that were just surviving a few decades ago.
On the negative side, jobs that were once protected are now open to competition and may not do well. For example, Western Pennsylvania had been a major manufacturing and steel producing center for over a century. Since globalization gained momentum it has lost much of its steel producing and manufacturing jobs overseas. Pittsburgh, which was once the steel producing center of the world, is now a center for banking and advanced medical care. The steel workers are unemployed even though the college educated have an abundance of job opportunities.
Initially, globalization contributed to economic development in the CNMI and was very welcome. It encouraged investments in the CNMI tourist industry and in manufacturing. Investments are the foundation for a vibrant economy. Everyone wants a vibrant economy, as it brings jobs and a larger tax base. It also increases the value of land, which is another source of income for those members of the local community who choose to lease their land. A vibrant economy has advantages that are desired by many people. There are also some negatives, even with a vibrant economy.
When investments result in more jobs, there is a need to fill those jobs. Many of the jobs are low skill level jobs that pay only minimum wage. These jobs are not particularly attractive to the local community, as it is difficult to get by in the CNMI on a minimum wage private sector job. One consequence is that employers want to bring in contract workers from outside of the CNMI. Coming from economically depressed areas it is easier to find people who are willing to work for minimum wage and put up with working conditions at which local workers might balk. The government is willing to allow the contract workers because they are necessary to the economy. However, having contract workers places additional pressures on the local community; both with the infrastructure and ethnic pressures.
The CNMI infrastructure (power grid, sewers, water system, health care system, etc.) back in the 70’s and early 80’s could comfortably support a population between 20 and 30 thousand people. When the population swelled to near 100,000 people in the late 80’s and early 90’s, the infrastructure was not able to adequately support such a large population. Raising taxes might have helped fund improved infrastructure but raising taxes too much would have scared away investors. Finding the balance was not easy. People got by with catchments, rolling power outages and similar make do efforts but any real fix needed to support such a large population would have required a major investment in the CNMI infrastructure. The economic downturn in the late 90’s and the decrease in the need for contract workers in the CNMI allowed an infrastructure fix to be put on the back burner. The hard-physical reality for economic development in the CNMI however, is that if there is enough of a reliance on contract workers to shift the size of the population up significantly, then an equal investment in infrastructure is necessary.
