According to the index of economic freedom, only California (of course), New Jersey, and New York are more repressive than Hawaii. Much of Hawaii’s (and California’s) repression comes from the land-use regulation, which makes building a home or starting or expanding a business very expensive.
The Antiplanner has told this story before, but briefly, most of Hawaii’s land is controlled by a few corporations and families. For the first half of the 20th century, these landowners argued that they could not sell their land for homes or other uses because it was too valuable as farms. They sometimes leased land to people who built houses on it, but people could lose their right to use the land at any time.
In 1954, the Democrats took control of the state legislature promising land reform, such as by taking land from the large landowners by eminent domain and selling to more people or at least forcing the landowners to sell land to leaseholders. Instead of keeping that promise, when they took office, the Democrats joined with the large landowners so that anyone who wanted to develop land had to make key members of the legislature one of their partners.
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To support this system, starting in 1961 the Democrats passed the nation’s most restrictive land-use laws, effectively prohibiting any developments unless the developer greased the wheels by making some politician a partner. They justified this on the need to save agricultural lands–exactly the same excuse that the landowners made.
More recently, Hawaii Senator Daniel Akaka proposed a bill that would effectively give some federal lands in the state to Hawaiian natives, in the same way that Native Americans have reservations. This would be fine if individuals would be allowed to own and sell their land, but instead the land will be managed for the natives by the federal or state governments. In essence, the bill assumes that natives are too stupid to make their own decisions.
Bills and laws like the Akaka bill would do little other than to keep the natives poor and prevent Hawaii from developing. Fortunately, the bill did not pass, but it shows that Hawaiian Democrats remain ignorant of the benefits of and need for protecting peoples’ property rights.
The U.S. government has “helped” no group more than it has “helped” the American Indians. The government has made most Indian tribes wards of the state. Government manages their land, provides their health care, and pays for housing and child care. Over 25 different departments and agencies have special “native American” programs. The result? Indians have the highest poverty rate, nearly 25 percent, and the lowest life expectancy of any group in America. 66% are born to single mothers. Consider the Lumbees of Robeson County, N.C. a tribe not recognized as sovereign by the government and therefore ineligible for most of the “help” given other tribes. The Lumbees do much better than those recognized tribes. Lumbees own their homes and succeed in business. They include real estate developer Jim Thomas, who used to own the Sacramento Kings, and Jack Lowery, who helped start the Cracker Barrel Restaurants. Lumbees started the first Indian-owned bank, which now has 12 branches. The Lumbees’ wealth is not from casino money not that I oppose Indian gaming but being able to do things with land as they see fit. Some argue that because Indian’s live in geographically isolated areas it’s impossible for them to get rich with no natural resources such as oil, minerals or metals. But with that logic then; how did the Mormons get rich living out in the Utah desert, how did the Amish get rich while rejecting the efficiencies of modern tools and technology and electricity. How did Manhattan and Hong Kong get rich, they’re just rocks out in the middle of the water, they don’t have natural resources. Tribal governments and the Bureau of Indian Affairs manage most Indian land. Indians compete to serve on tribal councils because they can give out the government’s money. Instead of seeking to become entrepreneurs, members of tribes aspire to become bureaucrats. If we turn Hawaiian natives into federal charity cases, we’re gonna ruin their lives and culture far worse than the land regulation. Hong Kong is 426 square miles in size and has a population of 7 million people, despite this only about a third of the island is developed with urban form. Hawaii is 10,000+ square miles in size. Oahu alone is 30% bigger than Hong Kong with only 1/10th the population. Hawaii as a whole is 1/6th Hong Kong’s population and most of them live in Oahu; Hawaii is sparsely populated.
Oh, I forgot to mention. If geographic isolation is the prerequisite for economic disparity, how did Australia and New Zealand get rich or the Cayman Islands. When the mortgage market crashed, the President said their new law, Dodd-Frank, would create a “new financial system” so such things would never happen again. Dodd-Frank, instead of stopping fraud, added layers to already incomprehensible banking laws. Simple rules in the Cayman Islands not only stop fraud, but they also create prosperity. Despite our myriad of rules and regulations from Enron, Bernie Madoff and other continued to scam the system for years before they were caught. They would not have gotten away with their financial misdeeds in the Caymans.
Funny. I’m in Hawaii right now. There is way too much traffic and too many military bases and personnel who drive back into Honolulu the way they might fly a jet fighter. Saw some eminent domain abuse signs on the North Shore. Hawaii should secede.
My closest loved ones are down there right now too. If you see two Ukrainians and four Uzbeks site-seeing, that’s my crew.
Oh I forgot. My presentation failed to mention Israel which today celebrated it’s 65th birthday as a nation. A desert berg when it began. Israel is less than 1% of all the land in the Middle East. Despite this they built a vibrant diversified economy at a quarter trillion dollar GDP and did so without the vast reserves of petroleum it’s neighbors possess. Lest we forget Taiwan, Singapore and South Korea, relatively small countries whose wealth has grown dramatically over the last 50 years.
Reminds me of another example of Hawaii doing the opposite. You maybe aware of the pig problem and the destruction it causes. Turns out that they limit hunting to daylight plus an hour after sunset. Pigs are most active after dark, so they are effectively protecting them and preventing any recovery of the land. California is even worse, with hunting of feral pigs allowed only during the day.
To LazyReader:
I hope you’re not a lazy writer also. Great stuff, do you have that on a website somewhere I can link to on Facebook or a quick summary I can make into a couple of those MEMEs?
-OFP2003
Interesting to see the pig topic brought up. A bit off topic but the most hardcore thing I’ve ever witnessed was a Hawaiian pig hunt. 3 dogs track and attack a pig, Once they slowed it enough for the hunter to catch up he pulled out this huge Rambo knife, jumped on the pig and stabbed it in the heart. Blew my mind.
Apropos of pigs, and continuing the off-topic descent, I’m curious why the convenience store I often go to on 82nd Avenue here in Portland has XTreme Hog Hunter Magazine for sale at the front counter, alongside Good Housekeeping-style pablum and other dreck.
Iced, I’ll keep an eye out for your relatives among the endless throngs of Asians.
Also OT: Read an article about the University of Hawaii “contributing” $3.6 billion to the local economy. Of course this “contribution”is likely federal largess in the form of mainland tax dollars for research and indentured servitude inducing credit expansion that is the federal student loan program. Want to solve some of the crowding and land use issues? Reduce population. That would certainly occur by turning off the federal government spigot that is the military and subsidized education.
Now if you’ll excuse me, I’m off to stimulate the local economy by snorkeling.
Strange that many politicians, journalists, economists (ie Krugman & Reich) don’t notice cause & effect in results & policies between states & the US overall in its past & compared to other nations.