Guam’s economy is producing billions of dollars in activity. While the island is seeing signs of economic recovery and billions of dollars in economic activity from tourism and military-related investment, Guam is still facing a troubling reality: expensive cost of living, challenging housing affordability, and families struggling to make ends meet with the cash they have. While the economy of the island may be doing well on paper, with federal revenue, employment rates, and construction, for the average citizen, the cost of living is measured in groceries, monthly power bills, rent, transportation, and what they can afford beyond that with the wages provided. Defense-related infrastructure spending dumps billions of dollars in the local economy in the form of contracts, materials, and engineering, but the increased take-home pay does not necessarily reflect in the wages of local service-sector workers. While those working in federal contracts and the trades have seen their earnings grow, other industries suffer with narrower margins and slower wage growth. The increased gross domestic product (GDP) and tax revenue do not necessarily translate to reduced essential living costs for the average wage-earner in terms of groceries, rent, and transportation. Considering that nearly 90% of food and consumer goods on the island are imported, local supermarkets bear the brunt of the transpacific shipping and fuel surcharges. As a result, most staple goods in terms of fresh produce, meat, and boxed foods carry a price premium of nearly 28% over similar goods in the US mainland. Monthly family grocery costs of a four-member household often exceed $1,000 to $1,200 for staple goods. Electricity costs remain one of the heaviest expenditures when considering the average household budget in Guam. With the island’s reliance on imported fuel oil for electricity generation, utility bills often vary depending on the volatility of the international oil market. Monthly electricity and water bills for a single-family home or a three-bedroom apartment regularly exceed $350 to $600 and frequently rival car payments in terms of expenditures. The current situation with Guam’s economy represents a policy conundrum for the residents of the island. While headline figures represent billions of dollars in defense-related expenditures and a stabilization of tourism, an average citizen struggles to make ends meet with the cost of living. Defense-related public works spending programs continue to drive the GDP while also indirectly fueling increases in residential real-estate values and rental prices. At the same time, the sectors of the economy that represent the local non-defense-related service industry continue to see narrower margins and slower wage growth. Daniel Ignacio is a resident of Dededo.