The Economic Research Organization at the University of Hawai`i (UHERO) often releases compelling information about economic conditions here, and last month’s submission was a real eye-opener.
Professor Steven Bond-Smith and Graduate Research Assistant Eric Schwartz contend (in a nutshell) that there is more than meets the eye regarding economic realities in Hawai`i. With minimal new job development and lagging pay standards locally (compared to other major cities and states), the authors suggest that perhaps we should stop comparing Hawai`i to San Francisco or San Diego and maybe start comparing Hawai`i to places that are bereft of work opportunities, which include states ranked at the bottom of the economic spectrum.
Tourism, our economic driver for over 50 years, may be maxing out in terms of visitor numbers and hotel capacity, amenities offered, and local tolerance. Much like with the sugar and pineapple industries, tourism jobs usually don’t support lifestyles that allow longtime workers to build the retirement nest egg necessary to comfortably remain here.
Ah yes, retirement… a looming crisis in Hawai`i with too few facilities, geriatric doctors, and forethought as to what happens as folks live longer yet don‘t see enough income growth here to be able to afford the basics when reaching their golden years. Living in two- and three-generation, adult households can take its toll in many ways.
We need action. Like expanding film production credits. Let’s explore unique opportunities- like Delaware. About 90% of public U.S. companies now incorporate there, aided by fewer restrictions and a business-friendly dispute resolution system. In 2026’s digital world, Hawai`i might provide incentives to help remote businesses (re)locate here (including housing). Maybe biotech, aquaculture, and digital goods industry creation, aided by grants and incentives?
We rely on too many archaic systems and suffer from rote lethargy whenever change is necessary. Locals are moving to Nevada, Washington, Texas, Oregon, Arizona, or California. It will be more problematic to celebrate and retain local culture and the other life facets that make Hawai`i so unique and worthwhile if too many leave. UHERO’s report is the latest to remind us.
People need an economic looking glass that is not blurry, or in perpetual disrepair. Furthermore, our local social services sector strains to continue providing much-needed relief to thousands while under great duress amid federal cutbacks. We need think tank-generated seeds planted now to grow and change the disheartening comparisons proffered in the latest UHERO report.
Think about it…










