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An economic recession and a host of social problems would result if the legislation is passed into law wherein an automatic annual minimum wage increase of 50 cents is attached until the local minimum reaches the federal rate is reached.
This is the position of the American Samoa Legislature in a 17-page report which will be presented to Congress by Senate president Lolo Moliga and House Speaker Savali Talavou Ale.
It said that as a result of the absence of employment, Samoans would migrate en masse to the mainland.
Samoans who cannot make the adjustment to life in the US will end up in overpopulated correctional facilities, straining limited financial resources of local law enforcement.
The report predicts that American Samoans with poor health will relocate to the mainland for better health care and services but would not have insurance and they would most likely end up living on welfare seeking qualifications on Medicaid.
As a result, the territory would lose skilled workers leaving a big gap in its capability to get back on its feet economically.
Freight costs would increase dramatically and air travel would have to be cut down because people would afford to travel negating efforts to attract tourists.
The Legislature position paper concluded that it is “our humble plea to the Congress of the United States not to approve the provision of HR 1594 which will legislate and increment a 50-cent increase to the American Samoa minimum wage until the federal level of $7.25 is reached.
Fono leaders said the consequences would be too overwhelming and should not be tempted.
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