If Government Capital Must Be Invested...Make it for Infrastructure Development!

In these tight economic times, we're witnessing something tremendously ironic: those who have been against "hand-outs" for individuals facing hard times are demanding similar-type "hand-outs" for corporations. In the name of Economic Development or Economic Stimulus, corporations are lining up for money to either prop up their businesses or salvage them.

Personally, I am for tax-cuts for all (corporations and individuals). I prefer tax-cuts to appropriations or allotments. Let me keep my money. Do not take my money and feign benevolence by giving it back to me or to someone else.

But, in this time it has become expected that the government will intervene. And because our economy has been so deathly mismanaged, it seems necessary to seek government intervention. So the question remains: where should the government intervene?

Former Clinton Labor Secretary, Robert Reich called the government the "spender of last resort." He laid out his plan in an article on Talking Points Memo. And, if the government is going to spend, should our tax dollars be spent with those who may hoard that money? Or, would it be better to spend that money (the people's money) in ways that directly improve the quality of life for the people?

Now, I'm not advocating any permanent New Deal-style programs, but we know the Virgin Islands Legislature is itching to spend YOUR money. If they're going to give away your money in the name of economic development/stimulus, why not give it in a way that will directly benefit you?

We reported on the poor state of affairs at WAPA. And, we recently told you about the lackluster performance at VITELCO. Wouldn't it be nice to improve these services? Moreover, wouldn't everyone benefit from such an investment?

Of course, Virgin Islanders will benefit from reliable electricity and modern phone/broadband service. But, businesses will also business from reliable electricity and modern communications services. Moreover, more people might be inclined to start a business in the Virgin Islands if they can count on reliable utilities.

I spoke with Dr. Jeffrey Eisenach, Chriaman & Managing Partner at Empiris, LLC. He was mentioned in Saturday's posting on Vitelco's dilapidated infrastructure. His firm assisted in the study of Vitelco's infrastucture. Here's what he said to VI Watch:

The situation in the USVI is pretty unique in many ways, but perhaps most notably the sorry state of the telecom network there following years of neglect by the prior owners.

...The study upon which my estimates of economic benefits are based – by Connect Kentucky – indicates that the increase in broadband penetration that occurred there as a result of a variety of efforts was accomplished for very little in the way of incremental cost.

You remember that it was reported: a 14% increase in broadband capacity will provide the Virgin Islands with 1700 additional jobs. I did some research on cost to improve broadband capacity. And based on research from the National Exchange Carrier Association (the study refered to by Dr. Eisenach), for the 66K access lines in the Virgin Islands it would take (rough estimate) $72 Million to close that gap. That sum is about twice the amount requested for the fish farm. But, it would yield almost six times as many jobs as the fish farm. If the Virgin Islands Legislature only wanted to spend the $34 Million, they could commit to a 7% increase in broadband capacity and still bring about almost three times as many jobs as the fish farm.

Don't think I'm beating up on the fish farm! I'm not...

I'm just looking at the Virgin Islands Senators and other government officials who promoted the fish farm to Virgin Islanders as something in the best interests of the Territory as a whole. That is the crux of the problem: government leaders telling us that things are in our best interest because those things are in their personal interest.

(Remember returning Senator Adlah "Foncie" Donastorg served as a Consultant for Crucian Holdings, LLC. Again, that's not a slight at the integrity of the business - businesses do what's in their interests. And, having a former/returning Senator in your corner is definitely in Crucian Holdings' best interests. However, public officials are to serve the public interest. And, those who've left office should be required to obey ethical rules to protect against the "revolving door.")

Again, I would personally prefer keeping my money. But, there are limited need for taxes. Yet, those tax dollars should not be used forIf government capital must be invested, make it for infrastructure development! If we are going to spend taxpayer dollars, shouldn't those dollars be spent to directly impact the lives of taxpayers? What are your thoughts? If the government is going to spend your money, where should it go: to initiatives that may indirectly benefit you, or initiatives that would directly benefit you? Why?

Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!