My Thoughts on The Proposed 10% Government of Guam Pay Cut Bad, bad, bad, and more bad are the first things that come to mind when I consider the pay cut. Supposedly the pay cut will only be in effect until the end of the fiscal year. The government of Guam has in the past made some bad decisions, like the early out program and dipping into the retirement fund. If put in affect the 10% pay cut will be by far the most detrimental move the government has ever made. Since the government is the biggest employer on Guam. This pay cut will affect everyone. The government employees will continue to purchase their needs, but will severely cut back on their wants. If everyone purchased only what they needed the economy would be much simpler and less diversified, but in a market where the consumer purchases wants like cordless phones and teak furniture, the distrubution the funds is greater among the public. The employees will not stop paying for water, power, and gas. They will stop buying new stereos and cell phones, which others depend on for their livelihood. Some employees will definitely move off island, but the majority will stay and cut back on spending. This cut back will undoubtedly put the garrote wire on the neck of local businesses. The businesses will have to lay off employees, and these employees will also have to cut back on their luxury spending. The pay cut will not only effect the governments employees but also the employees and owners of private sector industry. The best solution in my opinion is to fire some unnecessary personnel. Maybe the government should stop providing for a welfare state and encourage personal achievement among the local people. ...
