Calvin Coolidge and Hong Kong Economics: Certain Prosperity For Those Who Work Hard, Persevere

Honk Kong could be the only nation on earth whose government takes from taxpayers, what it requirements for critical services, but no even more.

The result: Hong Kong enjoys one particular of the greatest living standards in the world it is per capita revenue is higher than Japan's and each massive nation in Europe. Shockingly, it does this with just 1 all-natural resource, a excellent deep water seaport.

Hong Kong enjoys this achievement, in spite of those European nations having: vastly greater riches, larger populations, extremely skilled operate forces, centralized locations and a decades head get started in industrialization and technologies.

Hong Kong's per capita revenue almost matches that of the United States, When it is Price of Government is Just Half

Per Capita Earnings U.S. $46,381.

Per Capita Earnings H.K. $42,748

Cost of Government U.S.--37.6%
Price of Government H.K.--18.6%%

Source: 2011 Index of Economic Freedom, The Heritage Foundation

Compare the information to Europe's four biggest Economies, and Japan. Per Capita Revenue is shown as PCI, the Price of Government as CoG

Hong Kong ______PCI $42,748, CoG 18.6%

Ireland _________PCI $39,469 CoG 42.%
United Kingdom __PCI $34,619 CoG 47.three%
Germany ________PCI $34,212 CoG 43.7%
France _________PCI $33,679 CoG 52.8%

Source: 2011 Index of Economic Freedom, The Heritage Foundation

Honk Kong's per capita income is also larger than Japan's. Japan's economic climate when soared like Hong Kong's. It then started expanding government spending, power and reach into the private sector. Due to the fact then, Japan has had virtually 20 years of sluggish growth and high debt. Just like President Obama's $862 billion so-referred to as Stimulus, the Japanese government implemented ten stimulus programs in the 1990's, with the exact same sluggish, practically negative outcomes.

Per Capita Earnings Hong Kong $42,748
Per Capita Earnings Japan -----$32,608

CoG Hong Kong 18.6%
CoG Japan -----37.1%

Source: 2011 Index of Economic Freedom, The Heritage Foundation

The United States also expanded government, far too a lot below George Bush but expanded it far a great deal more and a lot a lot more suddenly under Barack Obama. The Federal Reserve and the Congressional Spending budget Workplace have each projected extended periods of sluggish growth, high unemployment, nearly unimaginable deficits and a continuing explosion of lengthy term debt, because Barack Obama assumed the presidency in 2009. Forecasts for economic growth and job growth had been very positive just before Nancy Pelosi and Democrats took over congress in 2007.

Why Has Hong Kong Had Such Good results? Summary

Hong Kong allocates its resources appropriately. Foremost, workers retain a high percentage of their income to save, invest and innovate in the private sector. This high degree of individual freedom, specifically freedom from excessive government taxation, and excessive government regulation, tends to make for extremely honest and productive government. Hong Kong is practically corruption zero cost as measured yearly by the Index of Economic Freedom.

The tremendous portion of corruption in most governments, takes spot as a result of those governments expropriating excessive taxes from their most productive workers. In most cases those funds get misused for special interest voting blocks and self gain. A good deal of the corruption, results from redistribution. The productive workers having their dollars turned more than to the non-productive, generate a second strong negative--long term dependency, than a third potent negative for those who pay--the welfare giving congressman, gains an whole constituency of voters, for redistributing money that doesn't belong to him this vicious cycle keeps feeding on itself.

A nation's most useful resource is its men and women and the productivity achieved by means of the abilities of those folks. A vital adjunct is for those workers to make choices with their personal resources--their own capital--in the private sector, where it is most efficient.

Investors worldwide, have invested billions of dollars in Hong Kong for decades. This is due to the integrity of all areas of government-the legislature, the courts, the Constitution and monetary institutions.

Hong Kong has carried out what America did for its initial 140 years. America followed the U.S. Constitution, limiting government to its Constitutional obligations, skyrocketing us past all globe economies. Below Herbert Hoover and Franklin Roosevelt, government expenses, government programs, regulations and loss of individual freedoms, launched a new era toward too significantly government power.

In the 1920's President Calvin Coolidge, created deep cuts in taxes and other government costs and regulations. The economic climate and living standards soared as did innovation, per capita earnings and revenues to government. A big chunk of the national debt-25%-was basically paid down.

Let's get back to 140 years of restricted, Constitutional Government which gave us roaring prosperity, freedom and strength. Hong Kong seems to use the tenants of our Constitution, far more than we do.

Tell possible candidates to limit FEDERAL SPENDING to 18% of GDP. If they don't, we'll assistance opponents who will.

2011 Index of Economic Freedom: