Editing Hawaii (section)

==Economy==
{{disputed section|date=April 2025}}
{{See also|Agriculture in Hawaii|Sugar plantations in Hawaii|Big Five (Hawaii)|Plantation economy}}
[[File:Pineapple field near Honolulu, Hawaii, 1907 (CHS-418).jpg|thumb|alt=In a pineapple field, a laborer stands with his hat in hand.|Post-annexation, Hawaii's economy and demographic changes were shaped mostly by growth in the agricultural sector.]]
[[File:'Two Surfer Girls' by William Fulton Soare, oil on canvas, c. 1935.JPG|thumb|upright|alt=A painting of two white women surfing, circa 1935.|From the end of World War II onwards, depictions and photographs, such as this one of Hawaii as a tropical, leisure paradise, encouraged the growth of tourism in Hawaii, which eventually became the largest industry of the islands.]]
[[File:US Navy 111218-N-RI884-097 The U.S. Pacific Fleet Marching Band participates in a parade through downtown Waikiki honoring Japanese-American vetera.jpg|thumb|alt=An American soldier at Schofield Barracks.|The U.S. federal government's spending on Hawaii-stationed personnel, installations, and materiel (either directly or through military personnel spending) amounts to Hawaii's second largest source of income after tourism.]]

The history of Hawaii's economy can be traced through a succession of dominant industries: [[sandalwood]],<ref>{{cite web|url=http://www.hawaiihistory.org/index.cfm?fuseaction=ig.page&PageID=274 |title=Hawaii sandalwood trade |publisher=Hawaiihistory.org |access-date=November 5, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111005214518/http://www.hawaiihistory.org/index.cfm?fuseaction=ig.page&PageID=274 |archive-date=October 5, 2011}}</ref> [[whaling]],<ref>{{cite web |url=http://www.hawaiihistory.org/index.cfm?fuseaction=ig.page&PageID=287 |title=Whaling in Hawaii |publisher=Hawaiihistory.org |date=June 16, 1999 |access-date=November 5, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111005214600/http://www.hawaiihistory.org/index.cfm?fuseaction=ig.page&PageID=287 |archive-date=October 5, 2011 }}</ref> sugarcane, [[pineapple]], the military, tourism and education. By the 1840s, sugar plantations had gained a strong foothold in the Hawaiian economy, due to a high demand of sugar in the United States and rapid transport via steamships.<ref name="MacLennan 2004 37–62"/> Sugarcane plantations were tightly controlled by American missionary families and businessmen known as "[[Big Five (Hawaii)|the Big Five]]", who monopolized control of the sugar industry's profits.<ref name="MacLennan 2004 37–62"/><ref name="Huard"/> By the time Hawaiian annexation was being considered in 1898, sugarcane producers turned to cultivating tropical fruits like pineapple, which became the principal export for Hawaiʻi's plantation economy.<ref name="Huard"/><ref name="MacLennan 2004 37–62"/> Since statehood in 1959, tourism has been the largest industry, contributing 24.3% of the gross state product (GSP) in 1997, despite efforts to diversify. The state's gross output for 2003 was {{US$|47}}{{spaces}}billion; per capita income for Hawaii residents in 2014 was {{US$|54,516}}.<ref>{{cite web |url=https://data.hawaii.gov/Economic-Development/Per-capita-GDP-by-Year/qnar-gix3/data |title=Per capita GDF by year |publisher=State of Hawaii |access-date=August 25, 2016 |archive-url=https://web.archive.org/web/20160911221546/https://data.hawaii.gov/Economic-Development/Per-capita-GDP-by-Year/qnar-gix3/data |archive-date=September 11, 2016 |url-status=live}}</ref>{{Dead link|date=April 2025|fix-attempted=yes}} Hawaiian exports include food and clothing. These industries play a small role in the Hawaiian economy, due to the shipping distance to viable markets, such as the [[West Coast of the United States]]. The state's food exports include coffee, macadamia nuts, pineapple, livestock, sugarcane and honey.<ref>{{cite web |url=http://www.hawaiibeekeepers.org/history.php |title=A History of Honey Bees in the Hawaiian Islands |access-date=December 15, 2011 |archive-url=https://web.archive.org/web/20100908102027/http://www.hawaiibeekeepers.org/history.php |archive-date=September 8, 2010 |url-status=dead}}</ref>

By weight, honey bees may be the state's most valuable export.<ref>{{cite web |url=http://www.vcstar.com/news/2012/apr/23/hawaii-honeybees-vie-for-most-valuable-export/ |title=Hawaii honeybees vie for most valuable export |work=Ventura County Star |access-date=December 15, 2011 |archive-date=March 14, 2018 |archive-url=https://web.archive.org/web/20180314184307/http://www.vcstar.com/errors/404/ |url-status=live}}</ref> According to the Hawaii Agricultural Statistics Service,{{when|date=April 2025}} agricultural sales were {{US$|370.9}}{{spaces}}million from diversified agriculture, {{US$|100.6}}{{spaces}}million from pineapple, and {{US$|64.3}}{{spaces}}million from sugarcane.{{cite-needed|date=April 2025}} Hawaii's relatively consistent climate has attracted the seed industry, which is able to test three generations of crops per year on the islands, compared with one or two on the mainland.<ref>{{cite news |url=https://klewtv.com/news/nation-world/hawaiian-corn-is-genetically-engineered-crop-flash-point-11-19-2015 |title=Hawaii is genetically engineered crop flash point |date=April 19, 2014 |website=KLEW_TV |agency=Associated Press |access-date=April 18, 2018 |archive-url=https://web.archive.org/web/20191112105619/https://klewtv.com/news/nation-world/hawaiian-corn-is-genetically-engineered-crop-flash-point-11-19-2015 |archive-date=November 12, 2019 |url-status=live}}</ref> Seeds yielded {{US$|264}} million in 2012, supporting 1,400 workers.<ref name=ny1310>{{cite news |last=Pollack |first=Andrew |title=Unease in Hawaii's Cornfields |url=https://www.nytimes.com/2013/10/08/business/fight-over-genetically-altered-crops-flares-in-hawaii.html |url-status=live |work=[[The New York Times]] |date=October 7, 2013 |access-date=October 18, 2014 |archive-url=https://web.archive.org/web/20140831190727/http://www.nytimes.com/2013/10/08/business/fight-over-genetically-altered-crops-flares-in-hawaii.html |archive-date=August 31, 2014}}</ref>

{{as of|2015|December}}, the state's unemployment rate was 3.2%.<ref>{{cite web|title=Local Area Unemployment Statistics|url=http://www.bls.gov/lau/|website=www.bls.gov|publisher=US Bureau of Labor Statistics|access-date=February 25, 2016|archive-url=https://web.archive.org/web/20180725005015/https://www.bls.gov/lau/|archive-date=July 25, 2018|url-status=live}}</ref> In 2009, the United States military spent {{US$|12.2}}{{spaces}}billion in Hawaii, accounting for 18% of spending in the state for that year. 75,000 United States Department of Defense personnel live in Hawaii.<ref>{{cite news |agency=[[Associated Press]] |url=http://www.navytimes.com/news/2011/06/ap-military-spending-strong-in-hawaii-060111/ |title=Study: Military spent $12B in Hawaii in 2009 |work=[[Military Times]] |date=June 1, 2011 |access-date=June 1, 2011 |archive-date=September 4, 2012 |archive-url=https://archive.today/20120904070338/http://www.navytimes.com/news/2011/06/ap-military-spending-strong-in-hawaii-060111/ |url-status=live}}</ref> According to a 2013 study by Phoenix Marketing International, Hawaii at that time had the fourth-largest number of millionaires per capita in the United States, with a ratio of 7.2%.<ref>{{cite web |last=Frank |first=Robert |title=Top states for millionaires per capita |url=https://www.cnbc.com/2014/01/15/top-states-for-millionaires-per-capita.html |url-status=live |publisher=CNBC |date=January 15, 2014 |access-date=January 22, 2014 |archive-url=https://web.archive.org/web/20140122061516/http://www.cnbc.com/id/101338309 |archive-date=January 22, 2014}}</ref>

===Taxation===
Tax is collected by the Hawaii Department of Taxation.<ref>{{cite web|url=https://tax.hawaii.gov/|title=Department of Taxation|website=tax.hawaii.gov|access-date=January 3, 2020|archive-date=December 31, 2019|archive-url=https://web.archive.org/web/20191231151648/https://tax.hawaii.gov/|url-status=live}}</ref> Most government revenue comes from [[Income tax|personal income taxes]] and a [[Gross receipts tax|general excise tax]] (GET) levied primarily on businesses; there is no statewide tax on sales,<ref>{{cite web|title=General Information {{!}} Department of Taxation|url=https://tax.hawaii.gov/geninfo/|access-date=July 19, 2021|language=en-US}}</ref> personal property, or stock transfers,<ref>{{Cite web|title=11 Reasons to do Business in Hawaii|url=https://invest.hawaii.gov/business/why-invest-in-hawaii/11-reasons-to-do-business-in-hawaii/|access-date=July 19, 2021|website=invest.hawaii.gov}}</ref> while the effective property tax rate is among the lowest in the country.<ref>{{cite web|title=Hawaii Tax Rates & Rankings {{!}} Hawaii State Taxes|url=https://taxfoundation.org/state/hawaii/|access-date=July 19, 2021|website=Tax Foundation|language=en-US}}</ref> The high rate of tourism means that millions of visitors generate public revenue through GET and the hotel room tax.<ref name="taxes" /> However, Hawaii residents generally pay among the most state taxes per person in the U.S.<ref name="taxes">{{cite web |url=http://starbulletin.com/2004/05/21/news/story1.html |title=Honolulu Star-Bulletin Hawaii News |publisher=Starbulletin.com |date=November 30, 2006 |access-date=November 5, 2011 |archive-url=https://web.archive.org/web/20080919004110/http://starbulletin.com/2004/05/21/news/story1.html |archive-date=September 19, 2008 |url-status=live}}</ref>

The Tax Foundation of Hawaii considers the state's tax burden too high, claiming that it contributes to higher prices and the perception of an unfriendly business climate.<ref name="taxes" /> The nonprofit Tax Foundation ranks Hawaii third in income tax burden and second in its overall tax burden, though notes that a significant portion of taxes are borne by tourists.<ref>{{Cite web|title=State-Local Tax Burden Rankings|url=https://taxfoundation.org/publications/state-local-tax-burden-rankings/|access-date=July 19, 2021|website=Tax Foundation|language=en-US}}</ref> Former [[Hawaii Senate|State Senator]] [[Sam Slom]] attributed Hawaii's comparatively high tax rate to the fact that the state government is responsible for education, health care, and social services that are usually handled at a county or municipal level in most other states.<ref name="taxes" />

===Cost of living===
The cost of living in Hawaii, specifically Honolulu, is high compared to that of most major U.S. cities, although it is 6.7% lower than in New York City and 3.6% lower than in San Francisco.<ref>{{cite news |url=http://salary.nytimes.com/costoflivingwizard/layoutscripts/coll_start.asp |title=Cost of Living Wizard |work=The New York Times |url-status=dead |archive-url=https://web.archive.org/web/20080914100326/http://salary.nytimes.com/CostOfLivingWizard/layoutscripts/coll_start.asp |archive-date=September 14, 2008 }}</ref> These numbers may not take into account some costs, such as increased travel costs for flights, additional shipping fees, and the loss of promotional participation opportunities for customers outside the contiguous U.S. While some online stores offer free shipping on orders to Hawaii, many merchants exclude Hawaii, Alaska, Puerto Rico and certain other U.S. territories.<ref>{{Cite web|url=https://www.amazon.com/gp/help/customer/display.html?nodeId=202052360|title=Amazon.com Help: About Shipping to Alaska, Hawaii, & Puerto Rico Addresses|website=www.amazon.com|access-date=June 18, 2018|archive-url=https://web.archive.org/web/20181214002438/https://www.amazon.com/gp/help/customer/display.html?nodeId=202052360|archive-date=December 14, 2018|url-status=live}}</ref><ref>{{Cite web|url=https://www.aimforawesome.com/moving-to-hawaii/no-free-shipping-to-hawaii/|title=(No) free shipping to Hawaii—Living in Hawaii—Moving to Oahu, Maui, Kauai, Big Island|website=www.aimforawesome.com|access-date=June 18, 2018|archive-url=https://web.archive.org/web/20180618102423/https://www.aimforawesome.com/moving-to-hawaii/no-free-shipping-to-hawaii/|archive-date=June 18, 2018|url-status=live}}</ref>

[[File:Hawaii electricity production by type.webp|thumb|Hawaii electricity production by type]]
[[File:Electricity prices by metro area.webp|thumb|Electricity prices by metro area]]
[[Hawaiian Electric Industries]], a privately owned company, provides 95% of the state's population with electricity, mostly from fossil-fuel power stations. Average electricity prices in October 2014 ({{convert|36.41|¢/kWh|¢/kWh|abbr=off|disp=out}}) were nearly three times the national average ({{convert|12.58|¢/kWh|¢/kWh|abbr=off|disp=out}}) and 80% higher than the second-highest state, Connecticut.<ref>{{cite news|last1=Chesto|first1=Jon|title=House bill aims to address state's power shortfall|url=https://www.bostonglobe.com/business/2015/01/29/house-bill-aims-address-state-power-shortfall/wrlx8fjkjzLF85wDhsf6KJ/story.html|issue=February 8, 2015|newspaper=The Boston Globe|date=January 29, 2015|access-date=June 21, 2017|archive-url=https://web.archive.org/web/20170629053521/http://www.bostonglobe.com/business/2015/01/29/house-bill-aims-address-state-power-shortfall/wrlx8fjkjzLF85wDhsf6KJ/story.html|archive-date=June 29, 2017|url-status=live}}</ref>

[[File:Median housing prices by State.webp|thumb|Median housing prices by State]]
The median home value in Hawaii in the 2000 U.S. Census was {{US$|272,700}}, while the national median home value was {{US$|119,600}}. Hawaii home values were the highest of all states, including California with a median home value of {{US$|211,500}}.<ref>{{cite web |url=https://www.census.gov/hhes/www/housing/census/historic/values.html |title=Historic Housing Values |website=www.census.gov |access-date=December 9, 2017 |archive-url=https://web.archive.org/web/20171029205137/https://www.census.gov/hhes/www/housing/census/historic/values.html |archive-date=October 29, 2017 |url-status=live }}</ref> Research from the [[National Association of Realtors]] places the 2010 median sale price of a single family home in Honolulu, Hawaii, at {{US$|607,600}} and the U.S. median sales price at {{US$|173,200}}. The sale price of single family homes in Hawaii was the highest of any U.S. city in 2010, just above that of the Silicon Valley area of California ({{US$|602,000}}).<ref>{{cite web |url=http://www.realtor.org/research/research/metroprice |title=Metropolitan Median Prices |publisher=Realtor.org |date=February 15, 2005 |access-date=November 5, 2011 |archive-url=https://web.archive.org/web/20111103194245/http://www.realtor.org/research/research/metroprice |archive-date=November 3, 2011 |url-status=live }}</ref>

Hawaii's very high [[cost of living]] is the result of several interwoven factors of the global economy in addition to domestic U.S. government trade policy. Like other regions with desirable weather year-round, such as California, [[Arizona]] and Florida, Hawaii's residents can be considered to be subject to a "[[sunshine tax]]". This situation is further exacerbated by the natural factors of geography and world distribution that lead to higher prices for goods due to increased shipping costs, a problem which many [[island country|island states and territories]] suffer from as well.

The higher costs to ship goods across an ocean may be further increased by the requirements of the [[Merchant Marine Act of 1920|Jones Act]], which generally requires that goods be transported between places within the U.S., including between the mainland U.S. west coast and Hawaii, using only U.S.-owned, built, and crewed ships. Jones Act-compliant vessels are often more expensive to build and operate than foreign equivalents, which can drive up shipping costs. While the Jones Act does not affect transportation of goods to Hawaii directly from Asia, this type of trade is nonetheless not common; this is a result of other primarily economic reasons including additional costs associated with stopping over in Hawaii (e.g. pilot and port fees), the market size of Hawaii, and the economics of using ever-larger ships that cannot be handled in Hawaii for transoceanic voyages. Therefore, Hawaii relies on receiving most inbound goods on Jones Act-qualified vessels originating from the U.S. west coast, which may contribute to the increased cost of some consumer goods and therefore the overall cost of living.<ref name="Keeping up with the Jones Act">{{cite web |url=http://www.hawaiibusiness.com/Hawaii-Business/August-2012/The-pros-and-cons-of-the-Jones-Act/ |title=Keeping up with the Jones Act |date=August 2012 |website=[[Hawaii Business]] |publisher=PacificBasin Communications |location=Honolulu, HI |archive-url=https://web.archive.org/web/20120823083544/http://www.hawaiibusiness.com/Hawaii-Business/August-2012/The-pros-and-cons-of-the-Jones-Act/ |archive-date=August 23, 2012 |url-status=live|access-date=March 14, 2014}}</ref><ref name="U.S. Law Restricting Foreign Ships Leads to Higher Gas Prices">{{cite web|url=http://www.hawaiifreepress.com/ArticlesMain/tabid/56/ID/10736/Jones-Act-Does-Not-Bar-International-Trade-From-Hawaii.aspx|title=Jones Act Does Not Bar International Trade From Hawaii|last=Hansen|first=Michael|date=October 3, 2013|publisher=Hawaiʻi Free Press|location=Honolulu, HI |access-date=July 28, 2018|archive-url=https://web.archive.org/web/20180728040004/http://www.hawaiifreepress.com/ArticlesMain/tabid/56/ID/10736/Jones-Act-Does-Not-Bar-International-Trade-From-Hawaii.aspx|archive-date=July 28, 2018|url-status=live}}</ref> Critics of the Jones Act contend that Hawaii consumers ultimately bear the expense of transporting goods imposed by the Jones Act.<ref name="Star-Bulletin on Jones Act">{{cite news |url=http://archives.starbulletin.com/97/04/08/business/story3.html |title=U.S.-only shipping rule praised, blasted; Backers and foes of the Jones Act make their case before the Legislature |first=Russ |last=Lynch |newspaper=[[Honolulu Star-Bulletin]] |date=April 4, 1997 |location=Honolulu, HI |publisher=[[Black Press|Black Press Group Ltd]] |issn=0439-5271 |id={{OCLC|9188300|433678262|232117605|2268098}} |access-date=May 5, 2012 |archive-url=https://web.archive.org/web/20121013185712/http://archives.starbulletin.com/97/04/08/business/story3.html |archive-date=October 13, 2012 |url-status=live}}</ref>