GW
25.6K posts

GW
@gethingw
Just passing through. RT's not necessarily endorsements


With debt high and borrowing costs rising, governments can no longer defer hard fiscal choices. Trust is now essential to reconciling competing priorities, Era Dabla‑Norris and Rodrigo Valdes write in F&D magazine. imf.org/en/publication…


In the aftermath of WW2, Hong Kong was a bombed-out British colony of 600,000 refugees, with no natural resources and a per capita income lower than many African nations. But by the 1980s it had become one of the richest places on earth. The man most responsible was John Cowperthwaite, Financial Secretary from 1961 to 1971. Cowperthwaite refused to plan the economy. He cut taxes to a flat 15 %, scrapped tariffs and subsidies, rejected industrial policy, and even stopped collecting detailed economic statistics - lest civil servants use the numbers to meddle. “I did very little”, he said. “All I did was to try to prevent some of the things that might have been done.” Government spending stayed below 15 % of GDP. Markets, not ministers, decided what to produce. The result was explosive growth: poverty collapsed, skyscrapers rose, and Hong Kong’s income overtook Britain’s. Today, most Western governments still strangle their economies with taxes and regulations, ignoring the lesson Hong Kong proved: the surest path to prosperity is to get out of the way.







🚨 BREAKING: UK warship HMS Dragon has been forced to withdraw in order to be repaired at port after experiencing issues with its fresh water supplies




















