By Ken Schoolland, Schoolland International Partnership

When I take my daughter to see a Walt Disney film she often gets a lesson about royalty and monarchs. There is usually a prince or a princess who was born to a superior station in life -- in Hercules, Beauty and the Beast, the Little Mermaid, Aladdin, Cinderella, Snow White, and especially in the Lion King, where even the zebras bow in homage to a young lion -- shortly before he eats them.

Throughout history, brutal conquest by royalty has been accompanied by some version of the Divine Right of Kings, asserting that rulers won in battle because God was on their side -- thus proving that He wanted them, and their children, to rule everyone in the kingdom.

The "conquest" part is usually ignored by Disney, which is odd because it was in America that royalty and titles of nobility were fiercely rejected as a basis of superiority and rule. American colonists declared that all men are created equal. They didn't apply this principle consistently, yet the colonists took both land and power away from King George III.

In Hawaii, the monarchy of Kamehameha lives on through the will of the much revered Princess Bernice Pauahi Bishop. In a manner which is characteristic of monarchs, the princess didn't just give the land to her subjects -- after her death. Instead, she established the Bishop Estate in her will in order to perpetuate, forever, her administration of royal properties through politically appointed trustees.

Native Hawaiians, the alleged beneficiaries of the Estate, have long suffered under the paternalism of others. They have been treated as wards of the state and wards of the Estate. It is high time that the trustees trust the Hawaiians and finally let them have their legacy. But the trustees won't. And the royal trustees live happily ever after.

Don't Be Conned About Con-Con

By Warner Kimo Sutton - 1978 Constitutional Convention Delegate

EDITOR's NOTE: This article was written before the Con-Con election was delayed by the 9th Circuit Court of Appeals on September 10.

Look at all the groups and individuals lining up to stop the 1998 Constitutional Convention. Why are they so threatened by democracy? What do they have to be afraid of? The campaign against the convention has begun. Will you be conned? Recently the League of Women Voters came out to postpone the next Con-Con, they do not respect the vote of the majority. On November 5, 1996 the voters of Hawaii said "yes" 163,869 to 160,153 "no" votes to conduct a convention. Who runs this respected organization? Surely we could join the group as small business individuals, and have our voice heard too. We should join some groups that oppose our interest to change their positions, because that is how our adversaries control those groups.

For the first time in Hawaii's history the State Supreme Court said all other ballots, both blank and spoiled, were "no" votes and that the "yes" lost. Who appoints them? The Governor does and he is against the Con-Con!

The Federal Court says there must be another vote but the 9th Circuit Court of Appeals is about to review the whole decision. If there is a validation of the first vote then the legislature will have to determine the rest of the process. Last year they were looking to reduce the numbers from the 1978 Convention. This may be in anticipation of legislators running as delegates. This would be hypocritical because they can now propose constitutional changes and add them to the ballot. The legislators must be kept away from this opportunity of the "Peoples Voice." This is why the power holders are afraid of a grass roots effort to change the Constitution. We also need dual representations in each of the districts, as in the previous Convention (102 DELEGATES). Grass root candidates can come from the Neighborhood Boards and community groups to better represent the people of Hawaii.

What could be addressed at a Convention? How about Judicial selection and the way the committee is made up. UPW head Gary Rodrigues is against a Con-Con, and he is on the committee to select JUDGES! This is not a blow for small business or justice, just the opposite. It is a conflict of interest and incentive for corruption for him and other big business representatives to be in control.

Initiative, Referendum, Recall and I.R. & R. was the central dividing issue in 1978 and we need it to pass this time. To take control back to the People we must be able to vote on issues that the legislature will not address, that is initiative. To have a referendum should be our right. And to recall elected officials before the next election cycle could keep those in power on their toes. These are Small business issues and we must be active in the campaign for The Constitutional Convention.

Come on out to support the election, join groups that SUPPORT it, and do get out the vote, because the other side is well organized. The unions have POI, Gary and Ben, and even the past president of the 1978 Con-Con. This is also Big business and the largest banks trying to give us the "thumb." These groups will try to paint an outsider and non local slant to the supporters of the Con-Con. This may be the largest grass roots efforts for a convention since Statehood. If we can win this vote, and we can, the whole complexion of Hawaii for small business will clear up like puberty to adult. We are ready to see growth so our economy can turn around. WE CAN WIN, and with your help we will.

A continuing litany from U.S. Representatives Patsy Mink and Neil Abercrombie are remarks decrying tax cuts for "the rich." Presumably, they get their ideas from the White House, whose officials use the word rich to describe the top 20% of income earners.

But what is this 20% in real income? According to the White House, $56,200 of actual and "imputed" income puts you there. Those families making $56,200 and more per year pay 74% of the nation's income taxes. Does that make them a group to be despised and discriminated against? Yes, in the language of Washington speak, which Mink and Abercrombie have apparently embraced.

The overall per capita national tax burden has risen from $4,382 to $5,430 since 1993. That's a 24% rise. Has your income risen 24% since 1993? Never mind, they will say that's not important, simply a "detail" in a larger "picture." Here is a "detail": He earns $30,000 and she earns $25,000. Both have employer provided 5% salary retirement plans. BINGO! RICH.

Mink and Abercrombie want to keep that family's taxes the same or more, because the family obviously doesn't know what to do with all that "extra" money. How's that for fairness and justice in a system run amok? For many of you, you have met the filthy despicable rich and they are you.

The Brown Out is Over
By William R. Sullivan, Retired Member

The Brown Out is over...or is it? The striking UPS workers are back but the Pilots are threatening a walk out at Christmas time and the former strikers are vowing to join them! The Teamster's President says that we should welcome that smiling truck driver back into our businesses with understanding and open arms. Even though he left you high and dry for 15 days and without much needed supplies for our businesses, we must understand that the brown suit was doing his or her duty for the nation's downtrodden workers and for our long term good.

My daughter has a Soccer Uniform manufacturing business in Southern California with a number of AYSO league uniforms to deliver in early August so the young soccer players could start their season in late August. She had planned her production to meet these early August delivery dates when her friendly man in brown decided that her business was not worth coming around to pick up for two weeks! You parents involved in AYSO soccer will understand that meeting the uniform delivery date is very critical - so much so that several folks presented a contract that provided for a 5% penalty for late delivery - a practice not uncommon in business.

She turned to Greyhound Bus for California, Arizona and Nevada. The recipient had to make their own pick up at the local Bus station, but the delivery was in hand. For those customers from Texas to Florida and even Nova Scotia, she turned to the U S Postal Service Priority Mail where she could pay $4.00 for up to 20 lbs. ($4.00 cheaper than UPS) and delivery in 2 or three days - better than UPS Blue Label! And UPS wanted $20 extra for the Nova Scotia customer because it was considered "rural!" There was no such charge by the Post Office for and RFD delivery.

To add insult to injury, her New York supplier of yard goods upped the minimum order from 5,000 yards to 15,000 yards because that was the minimum that FEDEX would handle! She had to scramble for a California source of material which is of lesser quality but which allowed the deadlines to be met. Will it hurt future business? Memories are very short when the next season rolls around and that quality wasn't what they expected. The 5% penalty was avoided this year at the risk of a lost customer next year! Thanks to the friendly driver in Brown!

Now that she has established the U S Postal Service routine, she intends to stay there and speak sayonara to the boys and girls in the brown trucks - and save money on her shipping costs. The Post Office is on her way home each evening and they deliver on Saturday! Why risk another brown out at Christmas time?

It is a basic tenant of economics that high marginal rates reduce capital investment and slow economic growth. Yet, too much emphasis has been placed on tax cuts. The important issue of spending cuts has been less pursued.

Economic growth is fueled by savings. It is the money we put aside month by month that goes to finance real increases in wealth as measured by capital goods used in business and long term durable goods used by consumers. The savings versus immediate consumption ratio in our economy is an indicator of our future capacity to consume. A high level of savings means a higher standard of living in the years to come.

The more affluent among us are the cornerstone of the savings equation, since they have the most extra money to invest. High marginal income tax rates and direct taxes on capital, such as the capital gains tax, cut into the money used for investment. Working class people have been told for years that higher taxes on the rich mean a little less champagne and caviar for some guy on a yacht. What higher rates actually mean is less money for creating and expanding businesses and for financing things like home mortgages.

However, if tax cuts are not backed up by spending cuts much of the economic benefits seen by the less affluent citizen is lost. The reason for this is that investment money rather than going into the private economy flows back to the government to finance the debt. The debt competes with private investment opportunities. All government spending is effectively consumption. To genuinely improve the savings vs. consumption level governments' overall spending must be cut along with taxes.

Our State Administration has mistakenly concluded that debt financing of over a billion dollars of new "capital" projects will improve Hawaii's economy. Bankers may foresee profit from handling the debt, but the rest of us will certainly lose. The schools and prisons to be built will provide no income stream to finance the debt. The borrowing done will compete in the capital markets with worthwhile private investment ideas. The long term effect will be a decrease in economic activity. To improve our local economy we must cut the overall level of government spending, not increase it.