Editorials
Thursday, December 25, 1997CHRISTMAS 1997 finds Hawaii at peace, but it is an unsettled peace. People are worried about the economy, which remains mired in a prolonged period of stagnation. That forces state and county governments to squeeze programs to fit revenues that are growing little or not at all. Economic turmoil in East Asia threatens to hurt Hawaii's visitor industry, still vital to the state's economic health. Christmas 1997 finds
peace and prosperityThe main focus here has been on the battle over the Bishop Estate, which shows no signs of letting up. The embattled trustees would no doubt welcome a little peace on earth, good will to men, but their critics are keeping the pressure on.
However, the nation as a whole is enjoying both peace and prosperity, along with sharp drops in crime rates. It's a rare combination, to be savored because it may not last.
American soldiers are still on duty keeping the peace in Bosnia, having just received a visit from President Clinton. Casualties there have been remarkably few, which explains why there has been little overt public opposition to the two-year-old deployment. We noticed little or no protest when the president announced the troops would be in Bosnia indefinitely.
The darkest war cloud visible at present is cast by Saddam Hussein, who is again testing the limits of the forces bent on containing Iraq's military potential. The U.S. armed forces may be called on again to go into action to force Saddam to allow United Nations inspectors full access to areas suspected of containing prohibited weapons. If allowed to rearm, he would be a grave threat to peace in the Middle East.
The strong national economy, along with a measure of bipartisan cooperation between Congress and the White House, has brought a balanced federal budget within sight for the first time in decades. That achievement has set off no celebration. People don't like big deficits but they take fiscal good news for granted. They're also concerned about balancing their own budgets, which never seems to get easier. Although the economy is strong, personal debt is higher than ever.
Despite the ups and downs of local, national and world affairs, people at this time of the year focus on the family. We hope all our readers and their loved ones have a joyous holiday.
HAWAII'S economy is stagnant, but the nation overall has rarely had it so good: six years of high production, low unemployment and low inflation. Yet some critics, citing Census Bureau data, contend that prosperity has been confined to the rich, that the poor are getting poorer. The Center on Budget and Policy Priorities suggests that "income disparities between the top fifth of families with children and families at the bottom and middle of the income scale have grown substantially over the past two decades." Rich and poor
Stephen Moore, director of policy studies at the Cato Institute and a respected economic analyst, has a contrary view. The key to understanding the statistics on family incomes, he contends, is adjusting for the size of the household, because the average family is smaller today. With that adjustment, Moore says, it can be seen that family incomes have grown over the last 25 years; a family of four had a median income of $42,458 (in 1996 dollars) in 1970 and $51,405 in 1996.
What has happened to the middle class? In 1970 about 62 percent of households had incomes between $15,000 and $50,000; today only half do. The explanation: Many have moved up, not down. In 1970 22 percent of households had incomes of more than $50,000 a year; today it's 35 percent.
Moore also dismisses the notion that wages are falling. Because of the increasing value of fringe benefits -- health-care coverage, pensions and leave and vacation time -- median hourly compensation has doubled since the mid-1950s and has increased about 20 percent since 1980. Only by ignoring fringe benefits can it be contended that average compensation is down.
It's true, as Moore acknowledges, that poverty still exists and some people's lot is not improving. The incomes of the poorest 20 percent declined 2 percent last year. But the poor of today are generally not the same as the poor of 20 years ago. A family that was poor in 1980 is more likely to have become rich than to have remained poor today.
There is an underclass in America that needs more help than it is receiving. But the strength of the national economy and the shrinking budget deficit make it more feasible to provide that help. Hawaii, unfortunately, is not experiencing prosperity, but must shield the neediest from the spending cuts needed to balance the operating budget while seeking ways to stimulate economic growth.
TWO Hawaii men are getting an extraordinary Christmas present. It is a check for $4 million to help rid the world of land mines. Dennis Minga and G. Kalani Long will use the money for their organization, the Royal Hawaiian Institute for Land Mine Removal & Reform. Removing land mines
Minga refuses to identify the donor, but it is believed to be Princess Diana's foundation. She was a leader in the movement to ban land mines, and had planned to meet here with Minga and Long. and to visit Cambodia with them. Diana's death drew wide attention to the causes she supported, particularly land mines.
The institute emphasizes removal of mines in Cambodia, and the grant will enable it to expand that work. It plans to open a school on Kauai to teach people how to handle mines safely. Land mines are one of the worst curses of modern warfare. This grant is a wonderful Christmas present of peace.
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
