Hawaii's grim economic outlook

[EightFingers]

Chunkster, Thanks for that, I was able to get it done in less than five minutes. I don’t like the $6 fee, but since it lets me avoid the Safeway kiosk, I will consider that as health insurance.

Puna: Our roosters crow first

[Chunkster]

8F, glad to help. Just sorry they are still gouging on the fee. It was already too much considering what it costs for processing, and in the current circumstances it becomes egregious, even at just $6.

[HereOnThePrimalEdge]

considering what it costs for processing,

If it's considered a mail order transaction, when the card holder gives you the number but is not there in person with the credit card, processing fees can run 2.5%-3.5% depending on the card. Rewards cards are always a percent or more higher because it's not your credit card company that provides you with the reward, but the merchant.

So on a $200 car registration, credit card merchant services will take $5-$7.

[BillyB]

Credit card fees are negotiable. You can bet Amazon is not paying 3.5%, My guess is it is less than 1%. Chase more than makes it up in the interest and fees. The State should approach credit card companies the same way Amazon squeezes its suppliers. Marginal revenue with few disputes = $ for them.

[terracore]

In Alaska they had a $10 surcharge if you DIDN'T renew online or through the mail and instead did it in person because they understood how automation and the economy works.

Also, it's more expensive to accept checks than credit cards. Credit cards don't bounce and credit chargebacks are nearly non-existent if the card accepter does everything they are supposed to do.

ETA: checks

[ironyak]

https://www.staradvertiser.com/2020/03/3...this-year/

"Hawaii’s unemployment rate is projected to soar to 25% later this year in the economic free-fall triggered by the coronavirus disaster, but the state is also in line to receive at least $4 billion in federal aid from the new federal relief bill approved on Friday, according to testimony before a select state House committee this morning.

Carl Bonham, executive director of the University of Hawaii Economic Research Organization (UHERO), said there is vast uncertainty in the UHERO projections, in large part because “there is no comparison for this.” Hawaii’s unemployment rate in January was 2.7%.

“We know Hawaii is already in a deep recession, and that recession will surpass anything that we’ve seen in our lifetimes,” Bonham testified today before the House Select Committee on COVID-19 Economic and Financial Preparedness.

“There’s really not any comparison that you can make to an economy where you’ve basically shut down hospitality and tourism, and will remain shut down for several months,” he said. He predicted the unemployment rate will begin to drop back down later in the year after peaking in the second quarter."

A bit more at link...

[Hotzcatz]

When sugar went down in '96, there was also a cutback in welfare that year. Hilo basically lost about 50% of it's economic support that year. It was pretty much localized to this island and this side of this island, though. This upcoming economic downturn is going to be way worse.

What happened then, was nobody had employment on this island so folks who could went to Oahu for work. Or commuted weekly for work, although plane fares were much lower then. We could buy a 'book' of six plane tickets for around $120.

It was pretty grim and lasted for at least a few years. People couldn't afford gas for their cars, paint for their houses, new clothes, etc., etc. Foreclosures were way up, folks were leaving the island in droves. But, this time, the economic fallout will include the whole state.

I don't expect to see tourists flocking back any time soon. And by 'soon' I mean at least for the rest of this year. They are also in a world of economic hurt and Hawaii is always seen as a luxury vacation.

Hopefully, we can get a bit of diversity in our economy, being so dependent on tourists is not a good thing. So, instead of working for a hotel, start a house cleaning company, a yard service company, grow and sell things, find some service or product that people need and provide it at a cost they can afford. If you wait for the jobs to come back, IMHO, it's gonna be a really long wait. Plus why work for someone else when you can work for yourself?

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"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson

[kalakoa]

Hopefully, we can get a bit of diversity in our economy

We do have diversity: besides tourism, there's disaster recovery and tax increases.

Too bad the islands have nothing else to offer.

[HereOnThePrimalEdge]

Too bad the islands have nothing else to offer.

Don’t forget aloha, although even that may have experienced a setback and decline recently, depending on who you are and what you believe.

[1voyager1]

It's also quite possible that once this epidemic has passed and the results are tallied, tourism as it's been may dead for a while.

A 3 to 5 month epidemic or more, plus its effect on the world, our country, its people and the economy, might just all but end tourism for a while.
Chances are possible this may begin another depression or similar.
It's possible many people may find the situation in Hawaii changed back like it used to be.
Many of today's Americans are too soft and couldn't deal with it.
Might not be such a bad thing.