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

Honk Kong could possibly be the only nation on earth whose government takes from taxpayers, what it requirements for vital services, but no extra.

The outcome: Hong Kong enjoys one of the greatest living standards in the planet it really is per capita earnings is higher than Japan's and each and every substantial nation in Europe. Shockingly, it does this with just 1 natural resource, a excellent deep water seaport.

Hong Kong enjoys this good results, despite those European nations getting: vastly greater riches, larger populations, extremely skilled function forces, centralized locations and a decades head begin in industrialization and technologies.

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

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

Per Capita Earnings H.K. $42,748

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

Source: 2011 Index of Economic Freedom, The Heritage Foundation

Compare the data to Europe's four biggest Economies, and Japan. Per Capita Income is shown as PCI, the Expense 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. Since then, Japan has had nearly 20 years of sluggish growth and high debt. Just like President Obama's $862 billion so-called Stimulus, the Japanese government implemented 10 stimulus programs in the 1990's, with the exact same sluggish, just about negative results.

Per Capita Income Hong Kong $42,748
Per Capita Income 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 also a lot below George Bush but expanded it far alot more and much extra suddenly below Barack Obama. The Federal Reserve and the Congressional Budget Workplace have both projected long 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 particularly positive before Nancy Pelosi and Democrats took over congress in 2007.

Why Has Hong Kong Had Such Achievement? Summary

Hong Kong allocates its resources properly. 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, makes for highly truthful and productive government. Hong Kong is virtually corruption free as measured yearly by the Index of Economic Freedom.

The massive 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 unique interest voting blocks and self gain. A excellent deal of the corruption, outcomes from redistribution. The productive workers getting their capital turned over to the non-productive, make a second potent negative--long term dependency, than a third potent unfavorable for those who spend--the welfare giving congressman, gains an complete constituency of voters, for redistributing capital that does not belong to him this vicious cycle keeps feeding on itself.

A nation's most useful resource is its people today and the productivity accomplished via the abilities of those many people. A necessary adjunct is for those workers to make decisions with their personal resources--their personal capital--in the private sector, where it is most effective.

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

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

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

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

Tell potential candidates to limit FEDERAL SPENDING to 18% of GDP. If they do not, we'll assistance opponents who will.

2011 Index of Economic Freedom: