Changing Hawaii

By Diane Yukihiro Chang

Friday, February 20, 1998

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Here’s real reason
this state is suffering

HAWAII is a case study in extremes. On the one hand, it has extremely good weather, clean air and water, scenic vistas and friendly folks. That constitutes the bright side, and what makes it so memorable to millions of tourists annually.

Then there's the not-so-bright side. Like a runaway vacuum cleaner, the economy sucks. This week alone, Pacific Century Financial Corp. announced the merger of its Bank of Hawaii and First Federal branches, resulting in 550 fewer jobs, while Liberty House plans to eliminate 500 positions in its retail stores.

Other extreme happenings include:

Turmoil at the state Board of Education, now that School Superintendent Herman Aizawa has resigned in disgust.

Bills being introduced or moving through the Legislature to raise state revenues via such "innovative" methods as legalized gambling -- including cockfighting -- and the taxation of nonprofits and charitable trusts.

Continued public repositioning by the governor over the Economic Revitalization Task Force plan, and now dire predictions by Honolulu's mayor that city workers may face pink slips, too.

Why is all this happening? What did Hawaii ever do to deserve such bad luck?

Don't fall for the ever-popular excuse that it's all about economic cycles or the bursting of the Japanese bubble. Here is the truth, and you're not going to like it.

It's largely because the people of Hawaii -- you, me and we -- have supported, for a very long time, extremes in government.

First, our business and political sectors were dominated by Big Five companies and white Republican males.

Then, there was the Democratic "revolution," in which ideals like big government, slow growth and strong unions reigned. It was good, even great in the beginning, because the "little people" were finally given power.

But after four decades of rule by mostly Democratic governors, mayors, lawmakers at state and county levels, and, heck, even Democratic-appointed trustees to the Bishop Estate, reality bites. With no partisan checks and balances in place to prevent extremes, we now have a Hawaii with:

A focus on how to raise more state and city revenues -- predominantly through various tax hikes and even through detrimental means like legalized gambling -- so that government services need not be curtailed. Did it ever occur to our leaders that residents might be willing to forgo the expediency of these services if their taxes were lowered?

An elected Board of Education, whose members are not necessarily the best qualified to serve but who certainly worry about things like getting re-elected and winning the endorsements and support of unions. Is it any wonder Aizawa quit in frustration?

Businesses large and small continuing to be hampered by overregulation and overtaxation, resulting in the need to slash jobs in bad times like this. When did you last meet an entrepreneur who, even in a robust economy, said government was business' best friend?

HAWAII is like a stuck-up beauty queen -- stunning on the outside but very ugly on the inside. And there's nobody to blame for it but herself.

Here's the bottom line in this election year: It wouldn't kill us to have either a Republican-controlled Legislature and a Democratic governor, or vice versa. Only through such compromise will sanity be restored in this extremely imbalanced place.