Stock market plunge raises questions of potential recession in Hawaii
As the Dow Jones went down by 800 points in a single day, many across the country are now concerned whether this could be a sign of another recession.
Those worries are also being felt here in Hawaii. University of Hawaii Manoa economics professor Carl Bonham says his main concern isn't so much the drop itself, but the fact that big swings in the market show how volatile the global economy is because of trade wars.
"The biggest risk to local consumers is that they lose a job. And most of that depends on what sector their job is in," Bonham says. The problem is the trade wars strike at the heart of Hawaii's biggest industry - tourism.
He says because of changing trade policies, Asian economies have suffering, meaning fewer visitors from Asian countries are traveling to Hawaii.
"Economically their currencies have hurt and we've seen a real pull back in spending by visitors from Asia mostly because of exchange rates," he says.
With Hawaii's cost of living already high, a recession could also hurt Hawaii residents living paycheck to paycheck.
His advice is to try and pad your safety net - save money and avoid adding on extra debt if you can.
But before you panic, Bonham says the stock market is only one indicator of the potential for recession. Hawaii's unemployment rate is still low.