Editorials
Monday, July 8, 1996
Importance of
military spending in Hawaii
MILITARY spending has long been a major factor in Hawaii's economy. Despite all the changes that have occurred in recent years, it still is - second only to tourism. A report that federal spending in Hawaii declined last year for the first time in a decade serves as a reminder of how important military spending is. The Census Bureau reports that federal spending here dropped from $7.6 billion in fiscal year 1994 to $7.5 billion last year. That ended a series of annual increases since 1986 that totaled abut 70 percent.
How big is federal spending here? About 12 to 15 percent of the gross state product, according to Seiji Naya, director of the state Department of Business, Economic Development and Tourism. And much of that spending is on defense. In 1992 the Defense Department spent $3.2 billion here.
The decline in federal spending is attributed to a drop in the number of defense jobs. Paul Brewbaker, chief economist for the Bank of Hawaii, said the state's military population has dropped from 60,000 10 years ago to 50,000 today; civilian defense jobs have dropped from 20,000 in 1990 to about 17,000. This reflects the national reduction in the defense establishment since the end of the Cold War, which has been much more severe in some other states.
Despite the decline from 1994, per capita federal spending in Hawaii last year ranked fifth highest among the states. The federal government spent $6,386 for every person in Hawaii, considerably higher than the national average of $5,160. For many years Hawaii has received more money in federal spending than Hawaii residents have paid in federal taxes.
Although federal spending on defense will always be adjusted to deal with threats to national security, the size of the defense establishment in Hawaii can also be affected by local attitudes. Demands that the military relinquish areas needed for training or other purposes will not help keep defense spending here from dropping further. Other states are eager to accept more forces or retain those they already have. It's important that Hawaii's people show that they want the military to stay, that the anti-military activists do not represent the majority.
Other editorials in brief:
Smoking in China
BOB Dole has been taking some heat, and deservedly so, for his incredible statement that cigarette smoking may not be addictive. Millions of people struggling to rid themselves of the smoking habit know otherwise. The suspicion that smoking may be unhealthy has even penetrated the minds of the Communist leaders of China.
In Beijing, smoking in public places was banned in May, and other cities may follow. Tobacco advertising in the electronic and print media has been banned nationwide. Health warnings are now required on cigarette packages. As a result, cigarette factories are being closed and state enterprises encouraged to start sidelines that don't involve tobacco. People in China are beginning to get the message. That's great. Now about Dole . . .
Rebound in Mexico
THE economic pendulum has reached its nadir in Mexico and started to swing up again. That makes President Clinton's decision to push through a multibillion-dollar bailout - despite Congress' opposition - look good.
Economic conditions in Mexico concern the United States for several reasons, particularly the problem of illegal immigration, which has a lot to do with the extent of unemployment. Americans will be hoping that this time Mexicans get it right.
Published by Liberty Newspapers Limited Partnership
Rupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor