Impact of Hawaiian Economy on the Average Hawaiian Rachael Schultz

Impact of Hawaiian Economy on the Average Hawaiian

Rachael Schultz

• Tourism [Alix]—largest industry• Agriculture [Christine]• Resources and power• Manufacturing

Introduction to Components of Hawaiian Economy

Unions

• 1 in 4 Hawaiian workers belong to a union• Most unionized state in country• ILWU and Hawaii Government Employees

Association

• Centralized tax system• General excise tax• Individual income taxes• Federal grants-in-aid

According to 2000 Census…

Population Unemployed (#/%)

Avg household income

Hawaii 1,211,537 35,8866.3

63,065

STL 2,003,762 56,5095.5

51,820

Cost of Living

100% Composite Index

12.95% Grocery Items

28.99% Housing

10.02% Utilities

11.98% Transportation

4.07% Health Care

31.99% Misc. Good and Services

Honolulu, HI

166.3 157.6 248.8 139.9 128.1 117.6 123.8

St. Louis, MO

89.5 99.3 77.8 86.0 94.0 98.3 94.3

If living in STL and thinking about moving to HI…100*[(HI-STL)/STL]=100*[(166.3-89.5)/89.5]=need 85.81% increase in after-taxes income needed to maintain present lifestyle

[ACCRA Cost of Living Index—2009 Annual Avg Data

Tbone steak

½ gallon milk

Dozen eggs

coffee

pizza sugar Apt rent

Mort Rate (%)

Gasoline

Doctor

Honolulu, HI

9.78 3.64 2.83 6.55 18.06 3.09 2,489 4.94 2.639 115.23

St. Louis, MO

9.09 1.99 1.52 3.39 10.38 2.05 762 5.05 1.943 83.28

Why is there such a high cost of living?

• Island, imports– Transportation costs included

• Housing– Import building materials– Limited land• corporations

– Possible solutions?

Mobility

• “Productive resources are mobile. This condition implies that if a potential seller identifies a profitable business opportunity in a market, he or she will be able to obtain the labor, capital, and other productive resources necessary to enter that market. By the same token, sellers who are dissatisfied with the opportunities they confront in a given market are free to leave that market and employ their resources elsewhere.”

• But…– Island– Economic resources– Stuck

Bibliography

• Britanica• ACCRA• BLS• Mcdc2.missouri.edu

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