The photo you see is my new reality when I go to do inspections on real estate properties.  Going forward, I will always be masked and gloved and shaking hands or hugging will be a calculated option, particularly with strangers.  For someone born, raised, and living in Hawaii, this is a very conflicted new world for me.

 Whether you call it the “Wuhan Flu”, “Coronavirus”, “Chinese Disease”, or “COVID 19” or if you believe it was manufactured in the laboratories of Wuhan or spread from people eating a particular fruit bat, this virus has devastated the world’s financial economy and particularly, tourism based Hawaii.

The destruction and the emotional loss of self-worth and confidence to businesses and individuals have been immeasurable.

Governments were at first afraid to shut down businesses and now are terrified to reopen them for fear of someone dying under their watch.  Instead of being reasonable, more draconian methods are still being commanded; self isolation, social distancing, curfews, mandatory mask wearing, flying drones to watch people who go outside of their houses, etc.  Anyone daring to venture out will be arrested and fined…All except for the homeless because we know they cannot pay fines and the ACLU protects their constitutional rights over all others.

As a real estate consultant, I often chat with other advisors around the world for exchanges of information and last week I had a conference call with two; one from Tokyo, the other Hong Kong. What I learned was the shutdown is global and everyone is sheltering in place until probably May 31st, 2020.  After that date, governments are gauging whether to open up their countries to business again.  We all agreed, the world needs to get back to work before then as the predictions are dire for a global financial depression and the world economy is in great jeopardy.

Governments need people working for taxes and without work you can only print so much paper before it becomes worthless. Our Federal government alone has borrowed over $4 Trillion dollars to assist people who have lost their jobs and livelihoods.  We are now at risk for hyperinflation to kick in and if money becomes worthless, then people will have no abilities to survive, eat, and they certainly will have no money for taxes. 

For many “progressive” governments like here in Hawaii this pandemic has now greatly shifted the paradigm of “tax and spend”.  There will be no money going forward for government controlled spending for housing, the homeless, schools, and especially for the salaries and pensions for government workers.  Collective bargaining with the unions will have to be renegotiated and cuts of personnel and benefits will be needed for survival.

As for Hawaii’s only business model of Tourism, Tourism, Tourism, the leaders will now have to look at new ventures to rebuild the islands’ wealth and future.

As I stated in my March 6th blog before the virus was on everyone’s minds, Hawaii’s current model of taxation and tourism have taken their tolls.  Residents have become tired and worn out with many believing there is no future for their children or themselves.  Can you imagine what many are thinking today?  After Hawaii reopens, many folks will have to decide if their future is here or in more affordable and geographically easier areas to be with friends and family. 

Fundamentally, the bottom line going forward for Hawaii and for governments across the world is simple; there needs to be a realignment of priorities for government.  The visitor industry while remaining the number one industry for us has to become self-sustaining and we have to find and expand into different job creations to balance our future.  The agriculture industry, rebuilding our infrastructure, redefining the medical industry, expanding our movie/television presence, etc. will have to become higher priorities.

This virus has given the world time to pause and think and now we all have to reboot into the 21st century.  It is absolutely vital that going forward everyone and all governments need to become balanced and strong so we are not victims again on any level.  Change only happens when pain comes for most people and I personally have had enough to change up my game plan and I hope governments and individuals now understand they need to transform their own paradigms.