Hawaii Comes in Last Again

[Old Croc]

$100 will buy only $84.46 here, the lowest of the 50 states and District of Corruption.

http://www.hawaiifreepress.com/ArticlesM...-8446.aspx

[ElysianWort]

It may have a LOT to do with corruption because our government is riddled in it.

However, do you think that living out on a remote tropical island yet still being part of the U.S.A. might have anything to do with the higher cost of living? Everything that isn't made here has to be shipped across that long pacific and it ain't free.

[Chunkster]

Interesting facts:

1. The Jones Act artificially raises the prices of nearly everything here by specifying that ships carrying cargo between two American ports must: a) be built in the United States, b) be 75 percent owned by U.S. citizens, c) be 75 percent manned by a U.S. citizen crew, and d) fly the U.S. flag. The unions and Hawaii politicians love this because it keeps some favored groups well to do at the expense of everyone else.

2. Most Hawaii bound shipments from Asian sources sail past us and disembark their cargoes on the West Coast, making the next leg of their journey subject to the Jones Act.

3. We have no real economy other than government spending and tourism. Despite a favorable climate and a history of large scale agricultural production, we grow less of our own food than almost any other state.

4. Our state and local governments, despite being controlled by "liberal" Democrats are among the most conservative anywhere in terms of being resistant to change or doing things they way they do them in more successful locations. They have no real interest in diversifying the economy because the benefits might not accrue to the "right" people or organizations.

I knew all that when I moved here and planned accordingly. It won't stop me from complaining, though.

[Old Croc]

Chunkster, why don't most Asian-flagged ships sail directly to Honolulu or Hilo?

[Rob Tucker]

Why would they? These ships carry containers filled with merchandise purchased primarily by mainland corporations.

There are few if any Hawaiian based corporations which can order in such quantity. Walmart, for example, will receive its containers at it's west coast distribution center(s) and breakdown and distribute to various locations (including Hawaii) from there. If they were to pass customs in Honolulu they would then be forced to ship ongoing freight to the mainland as per the Jones Act. Too much cost and too much handling.

[Chunkster]

Old Croc, Rob Tucker answered the question quite well, probably better than I would have.

[Old Croc]

Hmm, I assumed there was freight consolidation; like when you move your household goods and share a crate with another family (not that you asked to). Costco buys so many tons, Walmart some more, 99 Cent stores, etc., and it's shipped by an Asian freighter company. I'd have to do more research on this subject.

[Rob Tucker]

I think you will find little or no consolidation. Full containers of tennis shoes, computers, golf clubs, toilet paper, video games etc. Container rates are based on commodity listed. Mixed stuff (consolidation) usually ships at a higher or highest rate.

[glassnumbers]

This doesn't even make sense, its base claim of a finite value. Goods constantly change their value according to the demand for said goods.

Aloha

[TomK]

Never studied economics myself, but what does this mean?

"This doesn't even make sense, its base claim of a finite value."