6 Oct 2015

Top level fears for American Samoa economy

9:22 am on 6 October 2015

The top advisor to American Samoa's governor Iulogologo Joseph Pereira says the decision to increase the minimum wage by 40 cents per hour will devastate American Samoa.

Iulogologo says he shares the joy of low income earners regarding the increase but he also laments the fact their jobs might be eliminated to absorb the hike.

The American Samoa Legislature Fono building in Fagatogo

The American Samoa Legislature Fono building in Fagatogo Photo: National Oceanic and Atmospheric Administration

He says American Samoa is only just recovering from the closure of the territory's first tuna cannery Van Camp Samoa Packing .

He says the decision by the US Senate will trigger a financial crisis and effectively stymie and thwart economic development in the territory.

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