I’ve always been disturbed by the attitudes of government officials who pick on private citizens, businesses and non-profit organizations. They fancy their persecutions as courageous acts of bravery, fighting against invincible villains from whom the public have no protection. What a joke!
Take for example the Attorney General Office’s pledge to prosecute violators of Governor Togiola’s price-gouging law. Is it so courageous to threaten people whose licenses (their very means of living) you can revoke if they don’t do as you say? If the AG’s Office had some real balls, they’d focus 100% of their efforts and resources into prosecuting the real gougers of the tsunami’s aftermath: the thieves who ransacked people’s and businesses’ property in our greatest hour of vulnerability.
That would take real courage right there. Instead of doing what government is supposed to be doing (which is protecting our lives and property), what is the ASG doing now? Picking a fight with the Pago Pago Yacht Club. What cowards.
You know, one of the most important lessons I’ve learned growing up back home is that thugs only respect other thugs. They only pick on people they don’t expect to push back. That’s why the thieves of the tsunami will get away with their crimes while innocent people who live at the mercy of the ASG will continue to suffer under the thumbs of bullies.
Tuesday, November 10, 2009
Wednesday, August 26, 2009
Plastic Saves Lives
Have you ever seen that commercial where the setting is in a hospital, and everything made of plastic starts disappearing? The I.V. bags, X-Ray Photos, the bedding patients lie on, etc. After all things plastic have disappeared, the hospital room is bare metal and wood; not a pretty sight at all, especially if you’re an institution charged with saving people’s lives.
As Mr. Kneubuhl acknowledges in his guest editorial dated 8/19/2009, “The Pago Pago Jellyfish”, everything we consume involves the use of plastic in one form or another. Most of our foods are packaged with and preserved by the material. Why? Because plastic’s attributes make that possible.
If another material could do what plastic does at a cheaper price, we would be using it. We use plastic because it’s cheap, very durable and very convenient, and any realistic alternative would have to surpass those qualities if it has any chance of serving as a replacement in the free market.
Nevertheless, it is plastic’s greatest strength (durability) that serves as its greatest weakness in the eyes of the public. It’s not biodegradable (if it were, we wouldn’t be using it the way we do) and it sticks around long enough to cause an eyesore. But that shouldn’t serve as reason to dismiss this product’s blessings, but rather as a point of focus for its proper disposal.
And one can glean as much from the comments on Mr. Kneubuhl’s guest editorial on Samoa News’ website. And I believe Mark would agree with me that as far as plastic being an inherent danger to its human consumers’ health, the science is not settled yet.
But as far as the plastic bag ban being that gentle “prodding” the Chamber of Commerce believes businesses need to do what they think is right, let’s remember how gentle the container inspections at the loading docks were, or the Governor’s ban on 10 year old import vehicles. The first was a boondoggle failure and the latter caused mass confusion with residents (especially for Military Veterans returning home) losing time, money and assets.
Pollution is a problem that involves more than just plastic bags, and their outright ban may have costs that far outweigh the benefits.
As Mr. Kneubuhl acknowledges in his guest editorial dated 8/19/2009, “The Pago Pago Jellyfish”, everything we consume involves the use of plastic in one form or another. Most of our foods are packaged with and preserved by the material. Why? Because plastic’s attributes make that possible.
If another material could do what plastic does at a cheaper price, we would be using it. We use plastic because it’s cheap, very durable and very convenient, and any realistic alternative would have to surpass those qualities if it has any chance of serving as a replacement in the free market.
Nevertheless, it is plastic’s greatest strength (durability) that serves as its greatest weakness in the eyes of the public. It’s not biodegradable (if it were, we wouldn’t be using it the way we do) and it sticks around long enough to cause an eyesore. But that shouldn’t serve as reason to dismiss this product’s blessings, but rather as a point of focus for its proper disposal.
And one can glean as much from the comments on Mr. Kneubuhl’s guest editorial on Samoa News’ website. And I believe Mark would agree with me that as far as plastic being an inherent danger to its human consumers’ health, the science is not settled yet.
But as far as the plastic bag ban being that gentle “prodding” the Chamber of Commerce believes businesses need to do what they think is right, let’s remember how gentle the container inspections at the loading docks were, or the Governor’s ban on 10 year old import vehicles. The first was a boondoggle failure and the latter caused mass confusion with residents (especially for Military Veterans returning home) losing time, money and assets.
Pollution is a problem that involves more than just plastic bags, and their outright ban may have costs that far outweigh the benefits.
Tuesday, July 14, 2009
Slave Wages?
To compare people who work at low wages to slaves does a great disservice to those who actually live or have lived in real slavery.
A real slave doesn’t get paid anything; he or she is forcibly taken against their own will, beaten and threaten with death if they don’t do as they’re told. Slavery is a real, sad and unfortunate crime committed against individuals to this very day, and no one should make a joke of the term by using it to describe what people working at the canneries are going through.
If anyone is close to being slaves around here, they are businesses. They are being forced to pay wages on a notion other than profit-maximization. That notion is simply the law. And in what ways are businesses compensated by the government for making these payments? None. Right now, businesses are paying for a government welfare program without even a word of thanks!
Slavery is a condition where one is subjected to another. Offering low wages to someone to perform a job doesn’t fall into that category. Wages, high or low, are offered to free men not slaves.
A real slave doesn’t get paid anything; he or she is forcibly taken against their own will, beaten and threaten with death if they don’t do as they’re told. Slavery is a real, sad and unfortunate crime committed against individuals to this very day, and no one should make a joke of the term by using it to describe what people working at the canneries are going through.
If anyone is close to being slaves around here, they are businesses. They are being forced to pay wages on a notion other than profit-maximization. That notion is simply the law. And in what ways are businesses compensated by the government for making these payments? None. Right now, businesses are paying for a government welfare program without even a word of thanks!
Slavery is a condition where one is subjected to another. Offering low wages to someone to perform a job doesn’t fall into that category. Wages, high or low, are offered to free men not slaves.
Monday, June 29, 2009
The Spirit of Optimism
A close relative once gave me his perspective of what it means to be the cook for one’s family or village. He said that even if you slaved all day preparing food for the President of the United States, it is the cook, not the President, who gets to eat first. After all, someone has to taste the food before it gets served.
His point of view reminded me of something very unique about the Samoan Culture. Those who practice our culture always seem to have the trait to make lemonade out of lemons. I sometimes want to call it arrogance, but it’s more a combination of unrelenting pride, appreciation of life and a strong dose of optimism.
With the canneries closing, I think we’re missing that sort of inspiration from our leaders. All I hear from the top are numbers and models and mystical multipliers that, even as a self-proclaimed economist, I’m left rather uninspired by anything the ASG or the Congressman has had to offer in the way of solutions so far.
Our leaders are always quick to suggest that we return to our roots when it comes to our economic way of life (which is unrealistic). I very respectfully suggest to our leaders to return to that Samoan spirit of optimism that our people need in these very difficult times.
The departure of COS could either be an opportunity or a loss. Like they say, the choice is ours to make.
His point of view reminded me of something very unique about the Samoan Culture. Those who practice our culture always seem to have the trait to make lemonade out of lemons. I sometimes want to call it arrogance, but it’s more a combination of unrelenting pride, appreciation of life and a strong dose of optimism.
With the canneries closing, I think we’re missing that sort of inspiration from our leaders. All I hear from the top are numbers and models and mystical multipliers that, even as a self-proclaimed economist, I’m left rather uninspired by anything the ASG or the Congressman has had to offer in the way of solutions so far.
Our leaders are always quick to suggest that we return to our roots when it comes to our economic way of life (which is unrealistic). I very respectfully suggest to our leaders to return to that Samoan spirit of optimism that our people need in these very difficult times.
The departure of COS could either be an opportunity or a loss. Like they say, the choice is ours to make.
Monday, May 11, 2009
It's All A Guess
Businesses need to defend their decisions and not cede public opinion to the politicians or even to pundits, like myself. But seeing that Chicken of the Sea (COS) doesn’t want to justify how its bottom line is better off in Georgia than it is in American Samoa, then I guess someone has to speculate on their behalf.
I’m guessing that paying 200 workers $7.25/hr in Georgia is better than employing 2,172 of our people at $4.76/hr in American Samoa. That actually amounts to $8888.72 of instant savings in labor costs per hour, and that will especially be true if COS can employ less workers to do the same amount and quality of work in Georgia as it does now in the territory.
I’m guessing COS will be able to employ fewer workers to do the same job by investing in more capital (newer technology, methods and machines). It’s textbook economics that as labor costs go up, businesses have the incentive to substitute labor with machines. But as any accountant can tell you, the danger in doing that is that you increase your fixed costs relative to your variable costs. When things go south, you can’t fire machines; you still have to pay for them day in and day out.
I’m also guessing that the relocation to Lyons has a lot to do with its proximity to Atlanta , which is the transportation hub of the South East. Three interstate highways converge in Atlanta , and even Mexican drug cartels have relocated there to take advantage of the infrastructure. So instead of producing in American Samoa and shipping product via sea transportation, they’ll make it and transport it right there in its main marketplace.
I’m guessing there are whole bunch of other reasons that makes COS move more profitable than staying, but I’m not privy to any inside information. Is the minimum wage the sole reason they’re leaving? No. But it sure as hell didn’t help any.
The canneries may not have paid our people what many think are “fair” wages, but do they even get credit for all the indirect benefits they provided our great territory? Interest rates for auto loans are now going up; do the canneries get credit for unintentionally helping to keep them low while they were here?
How about the economies of scale they’ve helped with in transportation costs and electricity or all the supporting businesses that make money from them? Seems to me that the choice is either “fair” wages or nothing, which is not much of a choice at all.
I don’t care whose theory of economics this whole fiasco fits in. The fact is that we have 2000+ workers soon to be out of work, and we’ll trade $22-23 million of paid work for a $20 million welfare check from Uncle Sam (and that’s a Big IF). Our leaders must do something and do something quick.
But Faleomavaega’s rhetoric so far is not helping any. Any potential businesses or investors looking at American Samoa are probably reading his press statements and saying to themselves, “This is how I’m going to be attacked if I open up shop. Best not open up at all.”
How the government plans to attract businesses other than providing for a free market is anyone’s guess at this point.
I’m guessing that paying 200 workers $7.25/hr in Georgia is better than employing 2,172 of our people at $4.76/hr in American Samoa. That actually amounts to $8888.72 of instant savings in labor costs per hour, and that will especially be true if COS can employ less workers to do the same amount and quality of work in Georgia as it does now in the territory.
I’m guessing COS will be able to employ fewer workers to do the same job by investing in more capital (newer technology, methods and machines). It’s textbook economics that as labor costs go up, businesses have the incentive to substitute labor with machines. But as any accountant can tell you, the danger in doing that is that you increase your fixed costs relative to your variable costs. When things go south, you can’t fire machines; you still have to pay for them day in and day out.
I’m also guessing that the relocation to Lyons has a lot to do with its proximity to Atlanta , which is the transportation hub of the South East. Three interstate highways converge in Atlanta , and even Mexican drug cartels have relocated there to take advantage of the infrastructure. So instead of producing in American Samoa and shipping product via sea transportation, they’ll make it and transport it right there in its main marketplace.
I’m guessing there are whole bunch of other reasons that makes COS move more profitable than staying, but I’m not privy to any inside information. Is the minimum wage the sole reason they’re leaving? No. But it sure as hell didn’t help any.
The canneries may not have paid our people what many think are “fair” wages, but do they even get credit for all the indirect benefits they provided our great territory? Interest rates for auto loans are now going up; do the canneries get credit for unintentionally helping to keep them low while they were here?
How about the economies of scale they’ve helped with in transportation costs and electricity or all the supporting businesses that make money from them? Seems to me that the choice is either “fair” wages or nothing, which is not much of a choice at all.
I don’t care whose theory of economics this whole fiasco fits in. The fact is that we have 2000+ workers soon to be out of work, and we’ll trade $22-23 million of paid work for a $20 million welfare check from Uncle Sam (and that’s a Big IF). Our leaders must do something and do something quick.
But Faleomavaega’s rhetoric so far is not helping any. Any potential businesses or investors looking at American Samoa are probably reading his press statements and saying to themselves, “This is how I’m going to be attacked if I open up shop. Best not open up at all.”
How the government plans to attract businesses other than providing for a free market is anyone’s guess at this point.
Sunday, April 19, 2009
Force: A Governing Philosophy
I’m very thankful for Mr. Slater’s letter written in response to my diatribe on the House ban on petroleum-based plastic shopping bags. His commentary was less a defense of the House bill than it was an explanation of his beliefs about the role of government, and I’d like to respond as such.
I agree that government should “promote the common good”. It’s even in our Constitution under slightly different terms: To Promote The General Welfare. Actually, I believe the legislature can “promote” anything it wants, but to “force” or “legislate” or “guarantee” goes beyond mere “promotion” and requires the use of the state’s police powers.
That line between promotion and the use of force is a very thin one. There’s a lot of things government would love to promote like lower prices for food, gas, and airline tickets. Government would like for all of us to be in tip-top physical shape and eat only vegetables for breakfast, lunch and dinner. Officials would love for us to quit smoking, stop drinking beer and be in bed by 10 o’clock every night. All in the name of the common good of course.
Do not the above causes deserve the use of government force? Is the criteria for determining what are just causes whether they’re too controversial or not?
That sort of criteria is simply called majority rule, and everyone agrees with the majority as long as they’re in the majority. So it begs the question: Where does the majority’s view of what is good for the rest of us end and the rights of the individual begin?
The two concepts are incompatible; on any issue, either majority rule or the sovereignty of the individual triumphs.
But I do not believe that the majority of what the majority “wants” is incompatible with the rights of the individual. Things like a cleaner environment can be addressed while protecting our individual rights to life, liberty and private property.
But the Fono or the ASG doesn’t take that approach. Whatever it wants to do, it just decides to muscle its will with a ban on this and a ban on that. It is that view I will always take issue with, because once that line is crossed, it fast becomes the governing philosophy.
I agree that government should “promote the common good”. It’s even in our Constitution under slightly different terms: To Promote The General Welfare. Actually, I believe the legislature can “promote” anything it wants, but to “force” or “legislate” or “guarantee” goes beyond mere “promotion” and requires the use of the state’s police powers.
That line between promotion and the use of force is a very thin one. There’s a lot of things government would love to promote like lower prices for food, gas, and airline tickets. Government would like for all of us to be in tip-top physical shape and eat only vegetables for breakfast, lunch and dinner. Officials would love for us to quit smoking, stop drinking beer and be in bed by 10 o’clock every night. All in the name of the common good of course.
Do not the above causes deserve the use of government force? Is the criteria for determining what are just causes whether they’re too controversial or not?
That sort of criteria is simply called majority rule, and everyone agrees with the majority as long as they’re in the majority. So it begs the question: Where does the majority’s view of what is good for the rest of us end and the rights of the individual begin?
The two concepts are incompatible; on any issue, either majority rule or the sovereignty of the individual triumphs.
But I do not believe that the majority of what the majority “wants” is incompatible with the rights of the individual. Things like a cleaner environment can be addressed while protecting our individual rights to life, liberty and private property.
But the Fono or the ASG doesn’t take that approach. Whatever it wants to do, it just decides to muscle its will with a ban on this and a ban on that. It is that view I will always take issue with, because once that line is crossed, it fast becomes the governing philosophy.
Monday, April 13, 2009
The Ban On Plastic Bags Is A Farce
The House bill to ban plastic shopping bags is a farce as it will do little to protect our environment. After all, plastic shopping bags are not the only things flowing down our streams and choking our oceans. There are also diapers, cans, bottles, cardboard boxes… you name it, it’s there! Is the Chamber of Commerce going to ask the Fono to ban those items as well?
Free marketers always point to property rights as the means of effective environmental protection. People have the incentive to protect and maintain property from which they individually benefit and bear responsibility. And if government owns property, then it should enforce existing laws that protect it before going off on endless environmental crusades.
But I, for one, actually want to see this ban put into practice.
If biodegradable bags are “generally cheaper” than petroleum-based plastic bags as Mr. Robinson claims, then we wouldn’t need this ban to make the switch. We’d do it ourselves in the marketplace. And even if they were a cheaper alternative, I doubt these “environmental” bags are as convenient as their plastic counterparts are to us customers.
An attempt to force businesses and consumers to use something that’s most likely more expensive and less convenient is likely to cause a popular backlash. If that happens, it’d be interesting to see how many House members retain their seats after unanimously imposing something of this nature on their own constituents.
Free marketers always point to property rights as the means of effective environmental protection. People have the incentive to protect and maintain property from which they individually benefit and bear responsibility. And if government owns property, then it should enforce existing laws that protect it before going off on endless environmental crusades.
But I, for one, actually want to see this ban put into practice.
If biodegradable bags are “generally cheaper” than petroleum-based plastic bags as Mr. Robinson claims, then we wouldn’t need this ban to make the switch. We’d do it ourselves in the marketplace. And even if they were a cheaper alternative, I doubt these “environmental” bags are as convenient as their plastic counterparts are to us customers.
An attempt to force businesses and consumers to use something that’s most likely more expensive and less convenient is likely to cause a popular backlash. If that happens, it’d be interesting to see how many House members retain their seats after unanimously imposing something of this nature on their own constituents.
Tuesday, March 17, 2009
Thanks But No Thanks
It’s a shame that the Fono is looking to allocate money from the ASG’s $20 million loan to buy each District Governor a vehicle.
With all the fuss over ASG pay raises and fears of a further downturn in the economy, one would think that a sham of this nature would be the last thing on the Fono’s agenda.
Senator Utu Abe Malae said earlier this year that the loans made by the Retirement Fund to the ASG were a “great investment” compared to the stock market. But how are vehicles for our District Governors a “great investment” for the Retirement Fund? Or any of the projects funded by the ASG $20 million loan for that matter?
The stock market may be in a nosedive, but at least stock prices eventually reflect all the bad investments, mismanagement, fraud, waste and abuse made in the marketplace. Is there any stock price by which we can judge whether this “great investment” in the ASG is worth anything to us today, tomorrow, or for the life of this loan?
Taxpayers are continually taken for a ride in American Samoa except that they don’t get their own personal limousine to pick them up.
I hope our District Governors do right by their constituents and say to the Fono when they try to allocate them each a vehicle, “Thanks, but No Thanks”
With all the fuss over ASG pay raises and fears of a further downturn in the economy, one would think that a sham of this nature would be the last thing on the Fono’s agenda.
Senator Utu Abe Malae said earlier this year that the loans made by the Retirement Fund to the ASG were a “great investment” compared to the stock market. But how are vehicles for our District Governors a “great investment” for the Retirement Fund? Or any of the projects funded by the ASG $20 million loan for that matter?
The stock market may be in a nosedive, but at least stock prices eventually reflect all the bad investments, mismanagement, fraud, waste and abuse made in the marketplace. Is there any stock price by which we can judge whether this “great investment” in the ASG is worth anything to us today, tomorrow, or for the life of this loan?
Taxpayers are continually taken for a ride in American Samoa except that they don’t get their own personal limousine to pick them up.
I hope our District Governors do right by their constituents and say to the Fono when they try to allocate them each a vehicle, “Thanks, but No Thanks”
Tuesday, February 03, 2009
Privatize the Print Shop
If the ASG plans to follow other local governments in the U.S., like Chicago, Illinois or Sandy Springs, Atlanta, in shoring up their budgets by privatizing certain governmental functions, they can start with the ASG Print Shop. If print production in the ASG is anything like its business licensing process, then we should all pray that the next storm does more than just flood the Print Shop building.
The fundamental idea behind outsourcing a function is whether doing so would be cheaper or be of more value than keeping it in house. ASPA based its justification for bringing its trash collection services back in house on its findings that it would save its customers money. But it seems the Fono is being asked to mandate all ASG printing to be done at the Print Shop in an effort to save jobs or maintain that department’s relevance.
Whether it comes to privatization, outsourcing or free trade for that matter, it should never be about saving jobs. It’s whether the customer (in this case, the ASG) has the freedom to choose where to best spend his money. Economically speaking, that often means the cheapest price or the best quality possible.
Seeing that it takes a million years for the ASG to get anything done, we shouldn’t be too hopeful that it will privatize anything anytime soon. But in the case of the Print Shop, the best way for the ASG to privatize that department is to continue to do what it has always done best:
Nothing.
The fundamental idea behind outsourcing a function is whether doing so would be cheaper or be of more value than keeping it in house. ASPA based its justification for bringing its trash collection services back in house on its findings that it would save its customers money. But it seems the Fono is being asked to mandate all ASG printing to be done at the Print Shop in an effort to save jobs or maintain that department’s relevance.
Whether it comes to privatization, outsourcing or free trade for that matter, it should never be about saving jobs. It’s whether the customer (in this case, the ASG) has the freedom to choose where to best spend his money. Economically speaking, that often means the cheapest price or the best quality possible.
Seeing that it takes a million years for the ASG to get anything done, we shouldn’t be too hopeful that it will privatize anything anytime soon. But in the case of the Print Shop, the best way for the ASG to privatize that department is to continue to do what it has always done best:
Nothing.
Sunday, February 01, 2009
My One Complaint About 'Atlas Shrugged'
Stuart K. Hayashi
Writing this post has become an annual tradition for me. February 2, 2009, marks 104 years to the day of Ayn Rand's birth. Of course, the culture of the 48 contiguous United States associates the date of February 2 with yet another tradition. It is said that, on this day, if a politician crawls out of his hole -- and sees his shadow -- then we will have sixty more years of federal farm subsidies.
As for Miss Rand's magnum opus, I enjoyed every syllable on each of the 1,084 pages of the 1985 paperback edition I read. The prose sparked vivid images that made me feel as if I were gazing upon an exquisite painting.
I was so enthralled by the grandeur of it all that I was quite sad to finish it. It was as if I were a small child again, and summer was coming to an end, and I was parting with a dear friend and playmate whom I would not be able to see again for the rest of the year.
And so I have only one complaint about Atlas Shrugged:
It was too short. :'-)
Writing this post has become an annual tradition for me. February 2, 2009, marks 104 years to the day of Ayn Rand's birth. Of course, the culture of the 48 contiguous United States associates the date of February 2 with yet another tradition. It is said that, on this day, if a politician crawls out of his hole -- and sees his shadow -- then we will have sixty more years of federal farm subsidies.
As for Miss Rand's magnum opus, I enjoyed every syllable on each of the 1,084 pages of the 1985 paperback edition I read. The prose sparked vivid images that made me feel as if I were gazing upon an exquisite painting.
I was so enthralled by the grandeur of it all that I was quite sad to finish it. It was as if I were a small child again, and summer was coming to an end, and I was parting with a dear friend and playmate whom I would not be able to see again for the rest of the year.
And so I have only one complaint about Atlas Shrugged:
It was too short. :'-)
Tuesday, January 20, 2009
Everyone's a King
A colleague of mine informed me that the late Malietoa Tanumafili II once said that in Samoa, everyone is a king. I think that the former Head of State of Independent Samoa almost got that right. That’s because if everyone is a king, then no one really is.
I believe every man is king of himself and his property, and he is not a subject of another man or of a majority of men. If every man is a king in that respect, I believe Malietoa would have been even more correct to say that in Samoa, every man is free.
God bless America and American Samoa!
I believe every man is king of himself and his property, and he is not a subject of another man or of a majority of men. If every man is a king in that respect, I believe Malietoa would have been even more correct to say that in Samoa, every man is free.
God bless America and American Samoa!
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