BUILD HOMES THAT ARE AFFORDABLE-Published at Star Advertiser 9-30-15

Caldwell's administration "is committed to housing the .... homeless communities." (Star-Advertiser 9/19/15). Mayor's idea of building temporary modular homes for homeless is the right thing to do but not enough. We must also prevent more people from becoming homeless. Many consider skyrocketing home prices and building luxury condos are signs of prosperity. To the contrary,  it diminishes the chances for many young adults and new families from owning their homes. Owning a home no doubt is a big part of the American dream. This dream motivates people to work harder for their dwellings and pride. Instead of only pampering those high end projects, the government and developers must also cater to the upcoming generation by building affordable housing projects. Our Keiki are the Hawaii's future not those foreign buyers.

USING MINIMUM WAGE TO COMBAT DEFLATION

Japan's long lasting deflation will ultimately affect Hawaii's economy. Minimum wage can combat this economic phenomenon. As Paul Krugman's article in Insight states (StarAdvertiser, 9/19/15), "Japan needs to make decisive break with its deflationary past." The real reason for them hoarding cash and avoiding borrowing is their bleak view of future. Giving hopes to the Japanese is the cure.


Since 1990, wages fell by 3.5% while consumer prices rose about 5.5% mainly from the rising cost of utilities. Japan firms, however, accumulate their cash holding to the stunning level of $2.1 trillion or 44% of its GDP. With no dividends and pay raise in sight, saving rate certainly accelerate. Imposing higher minimum wage forces businesses to reduce its cash holding which subsequently will stimulate consumer spending.

In contrast, Americans have severe spending problem. As such, imposing the $15 an hour minimum wage may cause more economic problems than solving any.

Don't buy into Trump's trope-Published in Star-Advertiser on August 26, 2015

Donald Trump's campaign slogan is "Make America great again". We must examine what makes America great. The greatness of America is in its ability to embrace, inspire and provide. Making loud, sarcastic remarks and spreading fear is entertaining but does not befit a leader who can lead America to greatness. 

The fact is America is in a better shape than before with unemployment, GDP and inflation. China's financial turmoil is the consequence of its flimsy and untested policy. The sudden drop of Dow Jones Industrial Average does not reflect the America's fundamental strength. America is not in trouble as some claim. Don’t forget, Donald Trump is a businessman. His bottom line is profit. The popularity of his name has benefited his business greatly, according to his son Eric Trump ("Trump spreads his name, not his cash," Star-Advertiser August 21,). Make sure we don’t buy into his “Make Trump great again” campaign.

TRUMP WRONG ABOUT CHINA'S CURRENCY MOVE

Published in short form version in Star Advertiser, August 15, 2015 Saturday

Mr. Donald Trump's comment of China devaluation will devastate the U.S. is faulty. His exact words, "China has gotten rich off of us. China has rebuilt itself with the money it's sucked out of the United States and the jobs that it's sucked out of the United States." 

First of all, China did not get rich off of us. The truth is United States used China to make money for the U.S. Investors by outsourcing manufacturing jobs to China. We made them rich while President Bush was having tunnel vision on Iraq. Chinese got richer by saving In a much higher rate than American and its domestic land reform. 

Second, the Yuan devaluation seems arbitrary but necessary as the Yuan is still loosely pegged to the U.S. Dollars despite the Chinese official media denounces the U,S, often. The continuous rise of the dollar and other major currencies force China to do the inevitable. Although the falling Yuan may help its export to regain its fading luster and slow down its deflation by increasing the domestic cost of living, the economic impacts to China outweigh its benefits which subsequently trigger a massive outflow of capital back to the United States and Europe. Isn't Mr. Trump just sold an apartment for $15 millions to somebody from China as he disclosed says it all? In simple term, we buy cheap, sell high and get our money back at the end. How devastating could that be?