NOW ON THE HOT SEAT: STATE CHIEF ECONOMIST PEARL IMADA IBOSHI
May 14th, 2008 by Jeanne Mariani-BeldingWelcome to The Hot Seat! Just a scan of the headlines nationally and there’s no question that the weak economy weighs heavily on peoples’ minds. A story on the front page of today’s Advertiser says retailers expecting to get a taste of isle resident’s tax rebate checks should think again. In reality, people are using their rebates to pay bills.
In Hawaii, key indicators — from drops in tourism to an increasing number of foreclosures and more — clearly point to a rough economic road ahead. for us here in Hawaii.
So what should the state be doing, if anything, to mitigate that impact? Joining us live to answer your questions on the economy is Pearl Imada Iboshi, the state’s chief economist. She’ll answer your questions live online her on the Hot Seat from noon to 1 pm..
Just a reminder of our Hot Seat ground rules: Please keep your questions concise and on point to allow us to get to as many folks as possible. And, as always, let’s keep it civil — no personal attacks please.
Got questions? Hit the “comment” button below and join the conversation.
May 14th, 2008 at 12:09 pm
Thanks for joining us. To get things rolling, here’s a question sent via e-mail
from Jason:
What is the state doing to make sure r increasing food costs, just look at the food riots around the world, will not drive the elderly and those with tight budgets into hunger. We already pay much high food prices than people on the mainland.
May 14th, 2008 at 12:13 pm
To alleviate the high cost of food, do you think it would be a good idea to take the GET off of food? Hawaii residents are already struggling taxing their food is only making it worse.
May 14th, 2008 at 12:14 pm
Aloha Jason,
We agree that food costs are of great concern to everyone. Increasing fuel prices are the major factor behind increasing food costs. The State is very active in trying to insure that we have the proper infrastructure to handle imports of food in the future, especially at the airports and the harbors. The State has also been working on legislation to protect important agricultural land.
May 14th, 2008 at 12:15 pm
Here’s one from Donna K.: Higher gas prices have us over a barrel here. We import EVERYTHING, not just food. So does the state have a real plan, any plan at all, to deal with the impact of these prices on all our goods and services? Any thought given to working with the shipping companies and a plan to curb the impact on local residents?
May 14th, 2008 at 12:19 pm
Tina:
May 14th, 2008 at 12:13 pm
To alleviate the high cost of food, do you think it would be a good idea to take the GET off of food? Hawaii residents are already struggling taxing their food is only making it worse.
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Economists view the GET as a very efficient tax because it is a low rate with a very large base. The more exemptions it has, the higher the rate will have to be. Additionally, about 30 of the GET is exported to visitors. I personally believe that it is better to give tax creidts only to those who have the economic need.
May 14th, 2008 at 12:20 pm
As the state chief economist you must have a lot of insight on what is happening overall with our economy. Do you see any major signs of a recession? If so, what are they and what can be done to ensure the residents of Hawaii don't suffer to much?
May 14th, 2008 at 12:22 pm
Here’s one from Donna K.: Higher gas prices have us over a barrel here. We import EVERYTHING, not just food. So does the state have a real plan, any plan at all, to deal with the impact of these prices on all our goods and services? Any thought given to working with the shipping companies and a plan to curb the impact on local residents?
___
The State is making a concerted effort to reduce our dependence on imported fuel. In fact, the Governor signed an agreement with the US Department of Energy to be a test case for an ambitious effort to get 70% of our energy needs from renewable sources.
May 14th, 2008 at 12:25 pm
Here's one sent in from Lewis:
PLease ask Ms. Iboshi if our unemployment rate is going up. I know many people who are out of work. Also, most people work two or more parttime jobs, is there an economic indicator that tracks these folks? Is this a sign of our economy that we work harder than other people across the countnry to just survive?
May 14th, 2008 at 12:27 pm
Lisa:
May 14th, 2008 at 12:20 pm
As the state chief economist you must have a lot of insight on what is happening overall with our economy. Do you see any major signs of a recession? If so, what are they and what can be done to ensure the residents of Hawaii don’t suffer to much?
___
DBEDT has just released its quarterly forecast for the State. We believe that growth rates of personal income after inflation will slow to just below 1% in 2008. While this is lower than previous years, we do not expect negative growth. The Hawaii Tourism Authority is also increasing its marketing efforts targeting North America.
May 14th, 2008 at 12:31 pm
Since biotechnology and science are the wave of the future, are we doing anything to keep our youth here in Hawaii? They will need to earn higher wages to support and sustain a family here in Hawaii. A big part of our community here in Hawaii work service jobs and that doesn't pay all the bills.
May 14th, 2008 at 12:34 pm
With prices for everything going up including rent, what's being done to help those who will become homeless once they are forced out of their homes? What's being done to help those that are already homeless?
May 14th, 2008 at 12:34 pm
Here’s one sent in from Lewis:
PLease ask Ms. Iboshi if our unemployment rate is going up. I know many people who are out of work. Also, most people work two or more parttime jobs, is there an economic indicator that tracks these folks? Is this a sign of our economy that we work harder than other people across the countnry to just survive?
___
Yes, the unemployment rate is going up due to some recent business closures, like Aloha Airlines and Molokai Ranch. However, at 3% for the first quarter of 2008, we have one of the lowest unemployment rate in the nation. The 3% rate is also very low for Hawaii historically. According to US Bureau of Labor Statistics, we do have a higher rate of multiple job holders, however, it is still only 8% of total employed as compared to 5.3% for the nation.
May 14th, 2008 at 12:41 pm
Jo:
May 14th, 2008 at 12:31 pm
Since biotechnology and science are the wave of the future, are we doing anything to keep our youth here in Hawaii? They will need to earn higher wages to support and sustain a family here in Hawaii. A big part of our community here in Hawaii work service jobs and that doesn’t pay all the bills.
___
Jo, thank you for your question! This has been a major initiative of the State for the last few years to create a more innovative economy based on human skills. We have started programs in the schools to teach more science and math in a fun way, through robotics and other kinds of contextual learning. We have also proposed improved opportunities for people already employed to get training. We have also proposed measures to expand our kamai'ana come home efforts to entice residents to return. I agree with you that this is one of the most important efforts we will need to address to ensure our future economic prosperity.
May 14th, 2008 at 12:41 pm
Walter Dodds told Leslie Willcox in an interview recently that Hawaii has gone through several economic engines. There was agriculture (sugar can, pineapple) then tourisim. Each one had its hayday and has faded away to something new. What do you see in the near futrue as the next great economic engine of Hawaii?
May 14th, 2008 at 12:44 pm
Ladyluck:
May 14th, 2008 at 12:34 pm
With prices for everything going up including rent, what’s being done to help those who will become homeless once they are forced out of their homes? What’s being done to help those that are already homeless?
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The State has been aggressively creating new transitional and low income housing. The Department of Human Services has multiple programs to assist. This would be better question for those agencies that deal more directly with this issue.
May 14th, 2008 at 12:45 pm
Here’s another one sent via e- mail from Toucan: So I don’t see any plan on the state’s part to deal with all the job losses and higher most, other than sending these response teams to tell us what we already know. Times are tough. Is there a plan to deal with the huge increase this state will see in demand for social services and programs that deal with the poor and the soon to be hungry? Time to wake up.
May 14th, 2008 at 12:47 pm
In light of the economic downturn, what kind of adivce are you giving Gov. Lingle for Hawaii during the next 5 - 10 years? What type of economy will our children be looking at in the next 10 - 20 years?
May 14th, 2008 at 12:48 pm
George:
May 14th, 2008 at 12:41 pm
Walter Dodds told Leslie Willcox in an interview recently that Hawaii has gone through several economic engines. There was agriculture (sugar can, pineapple) then tourisim. Each one had its hayday and has faded away to something new. What do you see in the near futrue as the next great economic engine of Hawaii?
___
We believe that tourism will continue to be important in the State. We are also encouraging innovation and knowledge intensive industries. It will be important as I mentioned in a previous answer that we prepare our youth and current workforce for these highly skilled jobs of the future.
May 14th, 2008 at 12:48 pm
Just one more quick question; what kind of money impact would clean elections have on the state? If the state is required to kick in money for campaigns where would that money come from? more taxes?
May 14th, 2008 at 12:50 pm
How big is your department and what is your budget?
May 14th, 2008 at 12:52 pm
Here’s another one sent via e- mail from Toucan: So I don’t see any plan on the state’s part to deal with all the job losses and higher most, other than sending these response teams to tell us what we already know. Times are tough. Is there a plan to deal with the huge increase this state will see in demand for social services and programs that deal with the poor and the soon to be hungry? Time to wake up.
___
Thank you for the question Toucan. There are many programs by the State to assist the unemployed, including training and education. Hirenethawaii.com is a website that can help you find jobs and training opportunites. There are also one-stop workforce development centers on each island.
May 14th, 2008 at 12:54 pm
Here's another sent vi a e-mail from Jeff:
Please ask Pearl Iboshi what impact rail will have on our economy, I'm sure there are projections for jobs and the like, right? Besides that, I would think it will help when people can't afford cars any more, including gas, does Pearl Iboshi have any thoughts on that one? Is there lots of discussions on this relating to the economy with the governor? Thank you.
May 14th, 2008 at 12:56 pm
John:
May 14th, 2008 at 12:47 pm
In light of the economic downturn, what kind of adivce are you giving Gov. Lingle for Hawaii during the next 5 - 10 years? What type of economy will our children be looking at in the next 10 - 20 years?
__
Economic growth is cyclical. We have just completed nearly five years of very strong growth and our forecast is for moderate growth over the next few years. My recommendation would be to not look for quick fixes but focus on things that will provide a foundation for continued growth, including building a better educated workforce, fixing infrastructure and making it easier to do business in our State.
May 14th, 2008 at 12:59 pm
Tina:
May 14th, 2008 at 12:48 pm
Just one more quick question; what kind of money impact would clean elections have on the state? If the state is required to kick in money for campaigns where would that money come from? more taxes?
__
Tina, I am sorry but this is an area where I do not have enough information to give you a good answer or even to direct you to the right agency.
May 14th, 2008 at 1:02 pm
Shawn:
May 14th, 2008 at 12:50 pm
How big is your department and what is your budget?
___
My division, the Research and Economic Analysis Division in DBEDT has 21 filled positions and our budget is $1.4 million of general funds and $1.3 million from the Tourism Special fund for tourism research.
May 14th, 2008 at 1:03 pm
Ms. Iboshi what's your background in? Finance? What did you do before you became the state's chief economist?
May 14th, 2008 at 1:04 pm
Here’s another sent vi a e-mail from Jeff:
Please ask Pearl Iboshi what impact rail will have on our economy, I’m sure there are projections for jobs and the like, right? Besides that, I would think it will help when people can’t afford cars any more, including gas, does Pearl Iboshi have any thoughts on that one? Is there lots of discussions on this relating to the economy with the governor? Thank you.
___
Building a rail line will definitely increase construction spending in the next several years. We have not done an economic analysis, but clearly having a rail line will mean construction not only of the line itself but also will bring about development in the areas around the terminals.
May 14th, 2008 at 1:08 pm
Chloe:
May 14th, 2008 at 1:03 pm
Ms. Iboshi what’s your background in? Finance? What did you do before you became the state’s chief economist?
___
Thank you for asking. I have a BA, MA, and Ph.D. in economics. I worked at the East-West Center as an economist, studying and making policy recommendations on economic development and trade issues in South East Asian countries. I began working for the State in 1995 after 15 years at the EWC. You didn't ask, but I am from Hilo and attended Hilo High School.
May 14th, 2008 at 1:08 pm
That’s it, we’re out of time.
Thanks to all of you who participated in today’s Hot Seat — and a special thanks to the state’s chief economist, Pearl Imada Iboshi, for taking the time to have this community conversation with our readers.
Be sure to watch for excerpts of this community conversation in Sunday’s Focus Section.
Up next: We’ll take on the ConCon debate. Stay tuned and check our Hot Seat site to see who’s coming next.
May 14th, 2008 at 1:11 pm
We had a lot of questions on the economy and on increasing prices. Our experience is that Hawaii has a very resilient economy that has gone through numerous cycles. Our forecast is that we will continue to see growth in the next few years, albeit at a slower rate than the last few years. I continue to believe that our best strategy is to focus on policies that will improve our long-term growth potential.