[luau] our economy

Vikram Khurana vkhurana at mail.nmfs.hawaii.edu
Fri Feb 21 15:32:00 PST 2003


> A personal observation: Nothing is done in Hawaii that can be done
> somewhere else. So, if you are a tech person, your future here will most
> likely depend on supporting an activity that is best done here. Tourism,
> the military, state and local government, home repairs for movie stars
> living on Maui.

Makes sense. Why would anybody run a business in Hawaii which they can run
on the mainland for much less (hence make more profit or compete better with
other competitors)? It all comes down to the cost of living here, which is
high because of high land prices in Hawaii. Land prices are high because of
Hawaii's location. So it does all come down to the "price of paradise". 

People who do choose to run a business here(a business that they could run
on the mainland if they wanted to) do so because they want to live here. To
compete, they need to match mainland prices. Hence need to keep their
profits low so they dole out lower salaries than mainland (cost of office
space & other overheads is higher here). 

The only economic factor that would change the poor salary situation here is
if the land mass increased here(go volcanoes) & hence the land prices fall.
Lots of people choose lower salaries to work here because "lucky live
Hawaii". That means living more simply. Isn't that the Hawaiian way? It's
your choice.






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