Some observations from my recent trip to Hong Kong:
1. Hong Kong’s number one economic freedom ranking would come as no surprise to anyone who just wandered its streets, without examining any economic laws. There’s more street advertising in Hong Kong than anywhere else I’ve seen in the world, and more commerce that spills onto the street in the numerous street markets. I liked the colour and light of the advertising, especially as it distracts from one downside of little regulation, a large number of very ugly and unimaginative (but presumably cheaply constructed) buildings.
2. Despite this economic freedom, Hong Kong’s free-market think tank, the Lion Rock Institute (chaired by my expatriate friend Bill Stacey), does have something to do. HK is currently debating introducing a minimum wage. Perhaps the high A$ at the moment makes this look worse, but a report issued while I was there found that the median wage in HK was only just over A$8 an hour, way less than the Australian minimum wage (though prices seemed generally lower than here). Given that HK’s per capita GDP is greater than Australia’s, this suggests very high income inequality. Read the rest of this entry »