Wednesday, February 15, 2006

THE CROWDING OUT EFFECT

The MV Sili appeared to be a nice gift from Congressman Faleomavaega. Mainland Americans paid for the MV Sili, and government uses it to charge lower freight weight fees than its competitor, the privately-owned Manu’atele. Many appreciate the money they save because of the lower government fees, and they choose to discontinue their business with a viable entrepreneur. Manu’atele will go away only for the MV Sili to take its place.

But the MV Sili can only charge fees below or at costs for a while. Hell, the LBJ did the same for us since the days of… President Johnson himself. Our medical center, which gave us a pass by writing off the bills and handing them off to the mainland American taxpayer, squashed any initiative, any entrepreneur, any leader for real healthcare with their artificial prices.

As experience has shown, low prices supported by the federal budget are subject to the federal budget. When the US Congress can’t pay its own bills, it can’t pay ours. The programs that our Congressman and local government made us depend upon soon come under the axe of budget cuts.

Despite these ignored consequences, Togiola and Utu Abe Malae continue to offer more loan programs at the expense of the mainland American taxpayer. Because of the backing of the federal government, such loans charge interest rates below the market price thereby crowding out competition from real banks. These two officials do this to combat the righteous discrimination against those with bad credit, pending debts and low incomes. Instead of condemning bad behaviors, these politicians would rather encourage and reward them.

Shame on them.

And as Togiola inadvertently pointed out, low incomes are not only the fault of those who do not strive to achieve but also of the ASG. The ASG is responsible for lowering our per capita income and standard of living by opting “not to have any interest” in the fibre-optic cable laid from Hawaii to New Zealand in 1993.

Yet, this dependency of an ASG continues to posture itself as the savior of the people of American Samoa. But it is this stumbling government that is a continual obstacle and hindrance to market achievements by our people.

The crowding out effect by government will continue to make us the dependent children of Uncle Sam. It is something that our politicians are quite proud of apparently.

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home