Fingers crossed

Economies are fragile. 

This issue of the Journal encompasses information in our stories about tourism and stories of airlines, issues of labor for our construction industry, taxes and what can be done to leverage relationships in Washington, D.C. to improve our economy. 

We look at businesses and their challenges in markets where there are labor shortages, permitting issues and supply chain issues.

We bring you the stories where businesses have by dint of desperation decided to re-work their business model — or through inspiration risk their dollars in investment. 
The Guam Chamber of Commerce has been vocal in condemning a 22% pay increase for Government of Guam employees – all of them. This will cost $21 million – which the government justifies as being able to afford, due to an excess of revenue and a supposedly buoyant economy. 

As the Guam Chamber pointed out and its chairman Ed Untalan said at a March 29 Guam Chamber membership meeting, governments should not be making profits.
While Government of Guam employees deserve pay raises, surely an across-the-board award of 22% cannot be justified for all of them. 

Some of that money could be swiftly diverted to help ailing businesses. 

In addition, the award now puts the Government of Guam in competition with the private sector, which as we all know is struggling to find labor in a market where salaries are increasing with the shortage of labor. 

Gov. Arnold I. Palacios in the Northern Mariana Islands has acted to curtail the number of staff within his government to what the administration there can afford, while the fiscal situation of funding is clarified.

We are not suggesting that having to let employees go, or reduce their work week as Palacios has done in the interests of austerity is a good thing either. 
But governments need to be fiscally responsible and be seen to be fiscally responsible.

Crossing our fingers that everything will work out is no way to do business in the private sector — or in government. mbj