Why You Can't Travel Between Hawaii's Islands by Boat

Summary

This video explores the reasons why Hawaii lacks a ferry service between its islands, despite its geography and proximity. Key factors include the state's rough waters, environmental concerns, and high operational costs. Unlike Alaska, which subsidizes its ferry system with oil revenues, Hawaii’s lack of natural resources makes such subsidies difficult. Attempts like the Hawaii Super Ferry failed due to legal challenges and financial issues. With air travel being cheaper and faster, and legal barriers further complicating the situation, a sustainable ferry system in Hawaii remains unlikely, making inter-island travel reliant on flights.

Takeaways

• 😀 Alaska's ferry service is heavily subsidized by the state, covering nearly 70% of its costs through oil revenues.
• 😀 The subsidy for Alaska's ferry system makes it more affordable compared to other state ferry services, like in Washington.
• 😀 Alaska has abundant oil resources, especially from the Prudhoe Bay oil field, making it one of the wealthiest states in the U.S.
• 😀 85% of Alaska's state government budget comes from oil revenues, allowing it to support costly infrastructure like ferry systems.
• 😀 Alaska's oil wealth allows it to provide a unique oil fund that pays residents an average of $22,000 per year.
• 😀 Hawaii, by contrast, has no natural resources like oil, making it financially dependent on tourism and the military.
• 😀 Hawaii's economy struggles with high costs due to its isolation, leading to prohibitively expensive shipping and high home prices.
• 😀 Despite its lower median income, Hawaii faces a housing crisis, with home prices nearly double those of New Hampshire.
• 😀 The lack of a natural resource base means Hawaii relies heavily on taxes, resulting in a high tax burden for residents.
• 😀 Due to high costs and low demand, a ferry service between Hawaii's islands is unlikely to be financially viable or successful.
• 😀 The failure of the Hawaii Superferry in the 2000s has made future attempts to launch a similar service highly unlikely.
• 😀 Hawaii is known for its diverse and rich food culture, but like many places, faces the dilemma of balancing meal healthiness, affordability, and convenience.
• 😀 HelloFresh offers a solution to the food dilemma by providing quick, healthy, and affordable meal kits delivered to your door.

Q & A

Why is Alaska able to heavily subsidize its ferry system?

Alaska can heavily subsidize its ferry system because it generates substantial revenue from oil production, with 85% of the state's budget coming from oil revenues. This allows the state government to fund services like the ferry system, which would otherwise be unprofitable.

How does Hawaii's economic situation differ from Alaska's in terms of natural resources?

Unlike Alaska, Hawaii lacks significant natural resources. It depends on tourism and the military for economic support. As a result, Hawaii's government cannot rely on resource revenues to fund services and must depend heavily on taxes, contributing to a higher tax burden on residents.

What are the main industries that Hawaii excels in due to its geography?

Hawaii excels in tourism and military sectors due to its strategic location in the Pacific Ocean, particularly the value of Pearl Harbor for military purposes.

Why is it difficult for Hawaii to establish a ferry service between its islands?

Hawaii faces significant logistical and financial challenges in establishing a ferry service due to its geographical isolation, high shipping costs, and lack of natural resources to subsidize such a service. Furthermore, past attempts, like the Hawaii Superferry, ended in failure, making future endeavors unlikely.

What was the outcome of the Hawaii Superferry project?

The Hawaii Superferry, an attempt to establish a ferry system between the Hawaiian islands, was a financial disaster and was discontinued. This failure has made other ferry projects unlikely in the foreseeable future.

How does the cost of living in Hawaii compare to New Hampshire?

The cost of living in Hawaii is significantly higher than in New Hampshire, especially housing prices, which are nearly double. However, Hawaii's median income is lower than New Hampshire's, making it difficult for residents to afford the high living costs.

What are the challenges of living in Hawaii for locals?

Locals in Hawaii face challenges due to low-paying jobs in the tourism and military sectors, high living costs, and expensive housing. As a result, many residents leave the state in search of better opportunities on the mainland.

Why does the Hawaiian state government have one of the highest tax burdens in the U.S.?

The Hawaiian state government has one of the highest tax burdens in the U.S. because it lacks significant natural resources to fund services. As a result, it relies heavily on taxes from its residents to meet its financial needs.

What is the Alaska Permanent Fund, and how does it benefit residents?

The Alaska Permanent Fund is an oil revenue fund that pays out dividends to Alaska residents, typically averaging around $22,000 annually. This is essentially a form of basic income for residents, funded by the state's oil revenues.

What solution does the speaker suggest for people seeking healthy, affordable, and quick meals?

The speaker suggests using HelloFresh, a meal delivery service that provides pre-portioned, fresh ingredients for easy and quick home-cooked meals. This service helps overcome the dilemma of choosing between healthiness, affordability, and quickness in meals.