This is a sidebar to The Price of Paradise.
Guam’s cost of living keeps climbing, and wage growth hasn’t kept pace. Without the military buildup, our economy would be on far shakier ground — tourism is still lagging five years after COVID, and our economy remains dangerously undiversified.
The threat is clear: If we don’t tackle the rising cost of living and slow wage growth, the pressure on families, businesses, and the government will only deepen.
Risks
Declining purchasing power – Wages up 21% since 2019, prices up 30%; real wages down 7%.
Talent drain – Skilled workers leaving for mainland pay, eroding critical services.
Social service strain – $11M/month in SNAP; shrinking tax base could make programs harder to fund.
Housing vulnerability – Rising costs leave less for rent or mortgage stability.
Import shock exposure – Global price swings hit food, fuel, and goods hard.
Healthcare cost surge – Medical care CPI up 167% since 2007, fastest-rising category.
These aren’t hypothetical risks — they’re realities we already feel. Without action, they will only intensify.
Potential Solutions
Lower import costs – Improve port efficiency, bulk purchasing, tariff relief for essentials.
Energy stability – Invest in renewables to reduce utility volatility.
Local production – Increase local food and goods manufacturing to ease dependency.
Wage growth in key sectors – Training and incentives in healthcare, skilled trades, tech.
Remote work pipeline – Enable Guam residents to access U.S.-level salaries without leaving.Productivity-linked pay policies – Avoid wage-price spirals while improving earnings.
If Guam can slow cost growth and boost wage growth together, we can narrow the gap that’s been widening for years. That requires leadership — the kind willing to develop and execute a plan, not just talk about one. Until then, the gap will keep widening, and everyday life will keep getting harder for too many families.
The upcoming election is a pivotal moment. We’ve had five years of rising prices, stagnant wages, and no comprehensive plan to address either. Guam is at a crossroads. It’s not the time to give up — it’s the time to demand leadership with a clear strategy to grow and stabilize our economy while tackling the cost of living head-on.