Posted on: Monday, September 6, 2004

EDITORIAL
Lingle in New York: a bit of poetic license

We're willing to grant Gov. Linda Lingle a little irrational exuberance as she addressed the Republican National Convention last week. It must have been quite a rush.

And the whole state should be proud that she was given a moment in the podium spotlight to blow Hawai'i's horn.

But we'd be remiss if we didn't take a closer look at her claim that Hawai'i's current economic boom rests securely on the economic policies of President Bush. That's a stretch.

She's right in her recollection of the economic stagnation in Hawai'i of the 1990s, "a time of pessimism and unease."

But when it comes to reversing that malaise, and maybe this is just a matter of convention rhetoric, the story gets a bit clouded.

"My administration is just 21 months old," she said. "But, in that short time, because of President Bush's tax cuts and pro-growth policies and our team's solid commitment to creating a more business-friendly climate, Hawai'i's economy has turned around dramatically."

Lingle is right that the state's performance looks very good compared to when she took office, in December 2002. That's because the economy was then in a soft spot caused by the geopolitical turbulence engendered by the country's march to war in Iraq.

It's probable that Bush's third round of tax cuts, which cleaned up some distortions with respect to capital income, breathed new life into our investment-led recovery. So did tax credits like the local high-tech Act 221 and the booming real estate market.

We'd argue, however, that the recovery for Hawai'i began in 1997, and it has withstood such serious tests as the Asian financial crisis, 9/11, the war in Iraq and the SARS epidemic.

"Tourism is our state's leading industry," she told the assembled Republican delegates, "and 2004 may well go down as the best year for tourism we've ever seen!"

Well, yes. But to set that record, Hawai'i tourism will have to surpass 2000, the previous best year for tourism we've ever seen.

Wasn't Bill Clinton president then?