“Wait” is a four-letter economic cuss word. Over the years
the tendency for our leaders to “wait and see” has rarely lead to success.
Opportunity is not a doorway that swings wide and remains open until one is
ready to walk in. Conversely, opportunity is a doorway that is rather elusive
and once found you have to knock hard, wedge your foot between the crack and
pry away until you get entrance. Our leaders must recognize that introspection,
examination and deliberation are all part of the decision process but the
decision must be made as quickly and as wisely as possible.
If the elusiveness of opportunity does not give you occasion
to take note then contemplate the frequency of the national and international
recessions. One thing that that all economists agree on is that economic
recession are appearing more frequently and lasting for longer periods. We have
not recovered from the last recession and looking at the outlook for 2015 the
road ahead is precarious.
We have expended a tremendous amount of resources to survive
the last five years and we still have not seen a return to the “good old days”
when we were complaining. Think about it, the projected 2015 VI budget
shortfall is $60 million dollars away from not doing well! We are trying to get
back to pre-recession levels and no one was satisfied with those numbers. We
have a lot of work to do and certainly no time to “WAIT”.
As the world economy recovers from the last recession over
70% of Americans still believe that the economy is not getting better. This is
because like most of us they work for wages and are not independently wealthy.
They have seen the decrease in available jobs as well as the stagnation or
decrease in wages. This is even truer in
the Territory as inflation has deteriorated the buying power of all salaries. The
top 10% of the country’s wealth has increased 30% while the rest of us have
only seen a .04% increase. This one of the largest consumer markets in the
world . Its buying power drives many economies including ours.
If the US faces another recession before we recover from
this one the Territory will face even more dire times. We are not a country, we
do not print money, and we do not adjust interest rates. We have no tools that
control and dictate the economic infrastructure for the Territory. We depend on
the consumer spending of the 70% that are not confident in the US economy for
our tourism numbers and now a Republican congress for federal assistance. If
this consumer base doesn’t feel confident, they do not spend. This is the
economic reality of 2015.
In order for us to receive the economic growth we certainly
deserve, we are going to have to develop the fortitude for risk. The old adage
“nothing ventured, nothing gained” hold s true. We keep looking for the perfect
project, with the perfect investor, for the perfect location. Ladies and
gentlemen, new ideas are ugly and scary and rarely have the benefit of mass
public appeal; if they did we would all be billionaires. We would know where
the next, Google, Facebook or Tesla would come from, sign up and live happily
ever after. Risk is something that we have to embrace because let’s face it, as
the years go by we have less and less to lose!
Calculated risk is a must, I will never argue that you
shouldn’t look before you leap but as you look, recognize that the gap is
getting wider and the leap will have to be higher and longer. God forbid we are
faced with another global recession. It would be like finishing 23rd
in a triathlon only to be told that you have to run a 40K marathon before you
get some rest. How well we do as a
territory will depend on our ability to be aggressive, decisive and supportive
of leaders who are brave enough to try new approaches and take RISK! No one is
coming to save us. It is up to us to make the decisions to move these islands
forward. We can do a lot of things but we cannot afford to WAIT! Not for
another legislature, not for another administration and most certainly not for
another recession.
