I read with dismay Colette Sakodas response to the article on big box retailers.
First, Longs Drugs is not a local company.
Secondly, with all due respect to her area of expertise, one who is not familiar with how capitalism and free market economies work should not dabble in opinion on what is best for Hawaii’s economy. But then, she is taking her cue from many of our elected officials, academics and journalists who have, like her, been educated in the intricacies of socialism.
If she and her comrades prevail in convincing the masses to the
point of critical mass that socialism will work better than capitalism, then we can all look forward to life as it is in that shining example of collectivist nirvana, India. A land steeped in the tradition of regulation on enterprise and poverty.
And of course, there are other historical examples, like Soviet Russia where shortages of the basic staples for survival were not uncommon.
Thirdly, a basic lesson of free markets demonstrates that capital will flow to the enterprises that are most efficient and provide the greatest benefit to the consumer (Ms. Sakoda forgets how many people benefit from big box retailers). In the process, less efficient businesses are eliminated.
This is an unavoidable consequence of competition. The alternative is monopoly, either state controlled or owned. Given the alternative, the result is less efficiency due to government protection and a net loss to the economy because of stagnation of capital in markets that can’t or wont compete. A perfect example of stagnated capital is our illustrious convention center.
Live with the delusion that government should protect local business and you will increase government regulation, growth and taxes that marginalize all types of existing businesses. You will not reap what you sow.
”’Guy Monahan is a resident of Aiea and a board member of the Grassroot Institute of Hawaii. He can be reached via email at:”’ mailto:email@example.com