Follow a dollar through Hawaiʻi and see why prices are what they are.
Lesson 1 of 4
Prices rise when more people want something than there is to go around. On an island, supply is limited in obvious ways: land, housing and anything that has to be shipped in.
Demand comes from residents, nearly 10 million visitors a year, a large military presence and buyers of second homes. Limited supply plus strong demand is the basic reason Hawaiʻi costs what it does.
Change how much of each dollar gets re-spent locally and watch the rounds add up.
$200
Total local activity from $100
2.00×
Multiplier
The shares are illustrative, chosen to show the idea. Real local re-spending rates vary by business and are hard to measure.
Each round of spending
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For learning only. Kuleana Finance explains how money works. It does not tell anyone what to buy or sell.