IMO, HK has too many oligopolies. A lot of the founders are heralded as superstar businessmen but the fact is they operate with little compeition. Even something like a McDonalds, one can't buy a franchise because the are all awarded to a conglomerate.
HK is not the world's freest economy as a certain American right-wing think tank says. HK is a cartel economy dominated by a cabal of closed-knitted oligopolies with intimate ties to the top echelon of civil servants. That has always been an open secret to this city. What these vested interests are refusing to admit however, is that this model of business governance is no longer sustainable. The high land price directly or indirectly drives the high rent, making start-ups more difficult than it already is in this city. That in turn limits the kind of businesses that can operate in this city, which in turn narrows the opportunity of young people. So there is no doubt the tycoons (and their enablers in government) are sowing the seeds of further instablity with their predatory action on HK people.
The real question now is, what, if anything, can be done to broaden HK's economic base.
Last edited by Coolboy; 16-08-2019 at 02:08 PM.
either
1. integrate into the greater bay area.. which likely have more technology development and new age industries to participate in
2. force a drop of property prices in the next 5-10 years until it come in par with the median income of the citizens..
3. let status quo remains, which will precipitate protests every other year...
think XJP has spoken to the tycoons and told them pretty much what is expected of them.. the advertisements are but a start.. how much more control will he cedes to the business man will be an interesting point to study over the next 5-10 years
What's insane is the same companies controling housing also control the retail places where people shop entertain and eat. So out of one dollar of income the lions share probably ends up in thier coffers. Also, HK promotes a low tax rate hence part of the illusion of this place being free wheeling capitalist but people are taxed indirectly via high housing costs. A big bite of that is taken by the property companies with the rest going to the government. Seems like a shitty setup to me and obviously is given the huge wealth gap seen here. Xie's comments about nano flats were funny but sadly true.
We can see this effect in the occupation preferences as well. The smartest and most "elite" students predominantly end up in only a very narrow spectrum of professions, namely medical doctor and lawyers. Those are seen as "safe" professions so the vast majority of those high scoring DSE candidates end up either in medical or law schools. Yes, you will get the occasional political science, engineering or business major in the group of top scorers, but most end up being lawyers and doctors.
Now I respect both professionals (doctors more than lawyers if having to choose between the two), as both provide essential services to the well-being of society. But it is strange and indication of a problem in society when almost all the smartest kids end up becoming doctor and lawyers. The question is why. Their reply is often that both professions are seen as relatively "safe". When asked if they like those jobs, they often shrug their shoulders and either give a not-so-convincing "yes I do" or "no, but I need to earn a living".
That last answer is telling because it reflects a perception that there is a lack of opportunity in the city to support a wide spectrum of jobs. If you think about it, this is potentially a great loss to society. Say student X is a gifted artist and could have become a successful artist, but is told that there is no future for such a profession in this city. Or student Y is a talented violinist who is likewise told there is no opportunity for her. Who knows, maybe there is another Warren Buffett or Jeff Bezos in HK but their entrepreneurial talent is never discovered because they are told to follow a safe profession instead.
And why is there such a perception over a lack of opportunities outside a few narrow fields? Because the cartels seem to squeeze all other opportunities out of HK, through high rent, monopolistic control over many sectors and collusion with policymakers. Coupled with the government's low R&D investment and you end up with a innovation-limited economy strangled increasingly by these vested interest.
Last edited by Coolboy; 16-08-2019 at 03:55 PM.
I am not sure I agree exactly, as an American born and educated, I was initially never encouraged to even go to university. Most went to work right after high school, jobs had a pension and earned similar as college graduates.
Then in university, college professors and advisors prompted how to get a job and again it was more play it safe. Get a job, be quiet and get paid.
What you're saying I think is a general issue and not isolated to HK. People want the easy way and are not determined to do something different, for the most part.
It wasn't until I moved to HK, I became much more entrepreneurial and had the courage to actually put my plans into action. In the US, it was always a "dream", nothing more.