Money, Power and Politics Shape Public Policy
This session I’ll be watching bills that illustrate how money and connections shape policy. There’s no shortage of such bills – virtually any bill where an industry or labor group stands to gain or lose money will draw their leaders and their lobbyists to the Capitol. And, opposition to bills that restrict gifts to lawmakers, campaign spending and lobbying will also highlight how money and policy are linked.
I know this issue isn’t the top concern for most people. So, why am I watching it? I’ll come back to that.
Most people, myself included, are mainly concerned about the economy, and more specifically about jobs and housing. Will I be able to earn a living? Will I be able to afford a home? Those are the questions at the top of mind for most of us right now.
The Legislature is poised to respond to these concerns. The proposals this session include legalized gambling to create jobs, relaxed regulation to speed development, targeted tax breaks to spur hiring, and subsidies for developers to build more affordable housing.
These proposals are unlikely to solve the jobs and housing problem, in my opinion. Government subsidies simply cannot bring the price of houses down far enough so they’re in reach of most local residents. And, no amount of casinos or other stimulus can create jobs with wages high enough to afford a home in one of the hottest housing markets in the world.
To address the "jobs and housing" quandary I think there’s only one thing government can do: Invest in our people. That is, make serious and creative investments in education, job training, and capacity-building to boost the earning power of our people, so their talents command high incomes to match the high price of homes.
This would mean taking the subsidies we're giving to particular industries and "public" projects that mainly benefit a company or union, and redirecting them into the education of young and old - from quality preschool to second careers for senior citizens; from innovative new schools and apprenticeships to job training and entrepreneurship programs. Developing our people should be the economic policy of our state.
Instead, our economic policy is to develop our land - into hotels, vacation homes, timeshares, and perhaps casinos, too. We invest public funds into infrastructure, tax credits, and marketing for these visitor-oriented products. We've done such a good job that people around the world see land and houses as Hawaii's main value. They want to own a piece of paradise. That global demand raises home prices, and at the same time doesn’t create jobs and income for most local people to afford homes.
We have remarkable hotels, houses, and timeshares. But, we have an even more remarkable people. They have created new forms of music, dance, and art admired the world over. They’ve pioneered new technology, created new knowledge, and are at least partly responsible for producing a President. Hawaii’s people produce things of great value for the world, value rooted in our unique island culture.
When our people can turn their culture and talents into value for the world that exceeds the value of our luxury homes - then they will earn more than the price of houses here, and the "jobs and housing" problem will be solved. I don’t know what these new products are, but I trust the ingenuity of our people - with the right public investment in their skills and knowledge - to produce them.
I’m not the first to make this argument, and I will not be the last. What’s called for is a historic shift in our economic policy away from building houses and resorts, and toward building up our human capital. Those whose wealth and power depend on the economy as it is today will work overtime this coming session, using money and connections, PR and lobbying, to make their case to lawmakers that the economic policy of the State should stay within the well-worn path of tax breaks, incentives, stimulus and development.
Which brings us back to money, power, and politics. What should we watch this session? Anything that brings private interests out of the woodwork to influence public policy. Watching these proposals can open our eyes to how money and relationships shape economic policy in the state. But as we watch and learn with one eye, the other should be trained on the upcoming elections, and the chance to engage our representatives in a conversation about a new economic future for Hawaii.
About the author: James Koshiba is Executive Director of Kanu Hawaii. The views expressed in this piece are his and do not necessarily reflect the views or positions of Kanu Hawaii.
