DEAN SENSUI / DSENSUI@STARBULLETIN.COM
Sumner La Croix, chairman of the University of Hawaii economics department, told the Economic and Financial Literacy Conference yesterday that high school enrollment in economics has declined.
Hawaii economics literacy
poor, new study saysA typical isle respondent to
a July survey correctly answered
13 of 20 economics questions
U.S. Sen. Daniel Akaka was having a conversation with Alan Greenspan one day when he happened to ask the Federal Reserve chairman a question about literacy.
"He said our country was economically illiterate. That hit me," Akaka recalled yesterday during a break in the Economic and Financial Literacy Conference at the Japanese Cultural Center. "This (conference) is part of the drive to make our country economically and financially literate."
Hawaii's work force, like much of the country, needs to be schooled better about money matters, according to a survey released yesterday.
The July economic literacy survey of 409 Hawaii workers 16 and over revealed that the typical respondent correctly answered 65 percent, or about 13 questions out of 20. The survey, by SMS Research, also showed native Hawaiians to be among the least educated about finances.
Economic know-how
A sample from the Hawaii Council on Economic Education's 2003 Economic Literacy Survey.The stock market is an example of an institution within our economy that exists to help people achieve their economic goals. The existence of this institution:
a) Results in an increase in the price of stocks.
b) Brings people who want to buy stocks together with people who want to sell stocks.
c) Helps predict stock earnings.
A large increase in the number of fast food restaurants is most likely to result in:a) Lower prices and higher quality.
b) Lower prices and lower quality.
c) Higher prices and higher quality.
Answers: 1.(b), 2.(a).
The findings were presented at a conference co-sponsored by the Hawaii Council on Economic Education, Akaka, and the University of Hawaii Department of Economics.
Sumner La Croix, chairman of the UH economics department, characterized the results as "reasonably good" and said that Hawaii's work force overall has a modest understanding of economics and basic finance. But he said there was plenty of room for improvement, particularly in understanding inflation and financial institutions.
"It's important that people understand the role of money in the economy and how interest works," La Croix said. "Without that, people are going to find themselves making choices that leave them worse off than they otherwise would be."
Akaka and La Croix were part of a group of political, business and educational leaders at the event, which drew more than 250 attendees and about 20 exhibitors. Speakers included UH President Evan Dobelle and Pearl Imada Iboshi, state economist and policy manager for Gov. Linda Lingle, as well as several national financial experts.
A study by La Croix and graduate student Kimberly Bennett that incorporated the survey results found that enrollment in Hawaii high school economics courses has declined during the past four years, falling to 29 percent of high school seniors from 47 percent in 1999. The survey also revealed a disparity in test results among different ethnic groups.
Individuals identifying themselves as having Caucasian or Chinese ethnicity scored the best by correctly answering nearly 15 questions out of 20. Native Hawaiians or part native Hawaiians answered about 11 questions correctly while those with Filipino or Hispanic ethnic backgrounds answered fewer than 10 correctly.
Akaka attributed the differences to cultural upbringing.
"Culturally, the Hawaiians did not use a medium like money to do business and to relate to each other whereas the Chinese, when they came here, money meant a lot to them and they became business people," he said. "The Caucasians, coming from Europe, were financially astute and therefore knew more about the use of money. So, knowing that (Hawaiian) culture, I guess it's par for the course that Hawaiians would be on the bottom side of the ladder. But with this kind of program, we hope it will bring every culture parity and (improve) economic and financial literacy."
La Croix said fewer economics courses and the lack of teachers qualified in the subject are some of the likely reasons why economic and financial literacy are not higher.
Iboshi suggested a couple ways to get qualified teachers. One way, she said, was to get community business leaders to teach by offering some kind of summer training or ongoing mentoring rather than make them go through the certification process. Another way, she said, was to pay teachers more money to specialize in certain areas.
"It's done in the private sector," she said. "Some economists are paid more than some professions, although paid much less than some others, like football coaches," Iboshi said.
Dobelle, who has seen UH football coach June Jones' current and new contracts become lightning rods for public scrutiny, later defended Jones' new $800,016 annual salary.
"I like June Jones and he's a great football coach, but I wanted you to understand the economics (of athletics) because it's important," he said. "We spend a million taxpayer dollars a year at the university and generate $16 million that pay for our athletic budget. It's important to realize that although June gets an extraordinary amount of money, as do most football coaches at that level in the United States, that without a successful football team, there would be no Wahine basketball, there would be no women's softball, there would be no women's water polo, there would be no women's track team, there would be no sports of gender equity or Title IX without a huge ramped-up successful football program."
