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Came across this that Hawaii is tied for 8th lowest in the Unites States for income inequality.
Considering 7% of Hawaii households have net income above $1,000,000 excluding real estate and retirement - that is pretty good compared to the rest of the US.
Interesting. The first thing that popped into my mind when looking at the list (in descending order of income equality) was it went from low population states to high population states, with a few exceptions. Meaning the states with the most income equality were the less populated states.
Meaning the states with the most income equality were the less populated states.
Correct - income equality does dominate in states with lower population such as Hawaii. Fortunately, Hawaii has less issues with income equality than most of the US.
Ho! Good grief man you can't claim a victory when so much effort has been made in gentrafing Hawaii. How do you think Hawaii residents have gotten so wealthy? And no I'm not competing with you now, I'm just trying to understand your logic.
How do you think Hawaii residents have gotten so wealthy?
The post is about income inequality - not about how wealthy Hawaii residents are. The fact is that in the United States, Hawaii ties for 8th is having the least income inequality (the gap between high and low wage earners).
However, most people in Hawaii benefit from homeownership and homeownership rates have risen dramatically the past 40 years. Very low unemployment, low airfares and record tourism, and the military are also both common drivers towards wealth creation in Hawaii.
The wealthy people in Hawaii, by and large, came to Hawaii wealthy.
Don't read too much into the low employment. I am very suspicious of the numbers they give out on this, and we all know that many, many people in the islands only work P/T, or work two or more P/T jobs, because this way the employers can avoid providing health insurance and other state mandated benefits to their employees. The numbers are cooked anyway. When the unemployed exhaust their unemployment benefits and still find no work, they're not officially counted as unemployed anymore!!! I won't even comment on the military being a source of wealth.
Low airfares? Maybe to get to Hawaii, but the inter island rates are way too much. And these days, I don't see home ownership (which is mainly individuals stewarding properties for 20 or even 30 years that are in actuality owned and titled by the lenders) as necessarily a good thing, and that's pretty much everywhere. Will the property be worth even what you paid for it later? That one's a crap shot, and even if it appreciates, inflation, loan interest over 2 or 3 decades, title company fees, and taxes owed at selling time will kill that. Let's not forget property taxes and insurance on the home either. And unlike a renter, a home "owner" has to pay for every bit of maintenance and repair that is needed over time. It's probably wiser to rent, and put some aside every month in an IRA.
I haven't seen the article, but its obvious that places like Hawaii are populated by the very rich and the very poor, w/ not much in the middle, especially when you look at what is left after paying the bills, not at the gross amounts. My wife's son works at the Four Seasons on Lanai, and has for many years. He gets a decent salary, but w/ the cost of living there his quality of living is not so hot. In places like New Mexico, most people are pretty poor, but that's only looking at the gross income/wealth. They may be rich culturally and in other ways. So its hard to make all these simplistic judgements about inequality. I'd love to see it broken down by ethnicity, but we all know where the money is at.
The wealthy people in Hawaii, by and large, CAME to Hawaii wealthy.
Do you have any data points on this? From my perspective at work, most barely had enough savings to make the move and the young dreamers coming to Hawaii certainly don't seem to have suitcases of cash.
Quote:
Originally Posted by smarino
Don't read too much into the low employment. I am very suspicious of the numbers they give on this, and we all know that many, many people in the islands only work P?T, or work tw or more P?T jobs so that the employers can not provide insurance and other state mandated benefits to the employees.
This isn't 2008
Quote:
Originally Posted by smarino
I don't see home ownership (which is mainly individuals stewarding the properties for 20 or even 30 years that are really owned by the lenders) anywhere as necessarily a good thing. Will the property be worth even what you paid for it later? That one's a crap shot, and even if it appreciates, inflation and taxes owed at selling time kills that.
I guess you don't own a home. If you have lived in your home at least 2 of the past 5 years, the gains you make on the home are tax free. Depending on your tax rate, the federal government nicely subsidizes your mortgage via tax deductions - a $3,500 mortgage payment should most people at least $500/month in tax deductions.
In the year 2000, if you purchased your home in Honolulu at the median (about $300,000), sold it today at the median (about $700,000) all of the gains would be tax free. Even after realtor commissions and paying the balance on your mortgage, you are probably looking at a $500,000 tax free gain.
Bought at the median in 1985 (about $160,000) - you now have a fully paid off house, so you are essentially rent free with a house worth $700,000. Property taxes on that house probably run a whopping $2,000/year (which are tax deductible)
Quote:
Originally Posted by smarino
I havent seen the article, but its obvious that places like Hawaii are populated by the very rich, and the very poor, w/ not much in the middle).
Obvious how so? The median income for a single person in Honolulu $67,100. That seems squarely in the middle to me.
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