The Myth of Hong Kong Capitalism

Audio editing by Eric Schneider
Motion graphics by Vincent de Langen
Writing & Direction by Evan

This includes a paid sponsorship which had no part in the writing, editing, or production of the rest of the video.

Video supplied by Getty Images

[tonelsen]

The greatest thing I’ve learned from this video is that the richest Hong Konger literally has a ”ka-ching” in its name.

[fatmanmobile]

"The privately-owned Jockey Club is granted a total monopoly on gambling, which, in exchange, sprayed charity around the city in a way only guilt can explain" too good

[harriswong]

I was born and raised in Hong Kong. The monopoly/duopoly seem a completely normal thing in my life; and the laissez faire economy is something that is commonly taught in high school.

It is through the critical lens from somebody not from Hong Kong, in that I can realise things that I grow up with or take as a simple fact may not be that simple at all.

Thank you for encouraging me to be more critical towards what is happening in my home city and in the world.

[HowMoneyWorks]

This is just so well done. Excellent video, Evan!

[zzz]

Chaebols in South Korea: Finally a worthy opponent, our battle will be legendary.

[ksproductions]

“No, corporations legally cast ballots.”

**flashbacks to Functional Constituencies**

edit: mom im famous

[Nainara]

The distinction between "corporatism" and "free-market capitalism" is one worth exploring. It's important to note that Milton Friedman and other expounders of ideological "free-market capitalism" strongly supported government intervention to prevent or break up technical monopolies.

[haydenchan]

I have to say, as a Hongkonger, I love all of these episodes about Hong Kong 👍🏻👍🏻

[C.Dankertsen]

this channel is the definition of quality over quantity

[forestreee]

Hong Kong seems like the most cyberpunk-ish place on earth.

[schumanhuman]

This analysis whilst makes some good points misses probably the key reason for Hong Kong's success. Whilst deeply flawed the main reason for Hong Kong's growth is it mainly finances itself via corporate land leases, which allow it lower taxes on productivity. Most (edit not most but a large %) of the people are housed in public housing (admittedly inferior to Singapore's), which also drives down worker costs.
The high stamp duty also effectively nationalises a % of land/housing, as the liability of the tax comes off the capitalised price, though far less efficiently than an annual land tax would and their remaining private housing sector is still highly speculative.

In short Hong Kong use land as a tax base (something Friedman did get right) as well as in part treat it a public good. Hong Kong is then perhaps best described as a quasi Georgist model but lacks the democratic and fully efficient tax system which would allow the people to prosper more equitably. Scrapping the remaining taxes on productivity and replacing leases, stamp duties etc with an annual land value tax and then sharing a portion of the revenues as a dividend al Alaska's permanent fund would allow the prosperity to not only grow further but be shared more equitably.

[matthewmatthew]

It's also good to note that HK, a hilariously unequal place where conglomerates run everything and the government is *at best* ambivalent toward its peoples wellbeing. One of the few benefits publically provided is....a decently well-functioning public healthcare system and great public transportation infrastructure, would be good for policymakers and politicians in some other countries to take note...

[imbleu]

As someone from Hong Kong, it always surprised me when travelling overseas how cheap food is. You hear people complaining about how expensive food is in Sydney, Moscow, Amsterdam, Paris, London etc and when I go to supermarkets there, I am always shocked by how cheap food is in comparison. Took me until I was 20 to realise that it wasn't that food was cheap everywhere else, but that food was just expensive in Hong Kong.

[vennonetes]

This "corporatocracy" reminds me of the Venetian Republic (and Genoese etc... "Maritime republics" in general) and its focus on trade and commerce inevitably linked with the merchant oligarchy.

[anasadeelallawala]

This is really interesting and informative. There’s a lot of stuff in this which I didn’t know about before. Kudos to poly matter and keep up the great work👍👍

[jabbahutt]

“Non-permanent residents pay 30%, effectively blocking non-resident from own any homes.”

Oh, I can hear the laugh of Shenzhen natives even here in Vancouver.

[johnpijano]

"Some countries even describe corporations as legal "People""
America and Citizens united has left the room.

[xxyanlixx]

Corporatocracy sounds about right. In a city this small, the early successful entrepreneurs likely monopolized the daily commodities, thus the rich gets richer. Then makes the government impossible to not bend for them.

[tangkicheung]

As someone born and raised in hong kong, I honestly thought all of this was normal and was very much reasonable. But from what I see, if you are a lower class would suck as high rent and grocery cost etc., but your life as a middle class or higher citizen, your life is reasonably good here. Although yes, we don’t get to pick which companies we get our services from. But from what we see, most things are reasonably priced.

[johnc]

People often bring up "monopolies" as a critique of free market capitalism.
Yet, by definition, government-created monopolies mean that part of the economy isn't a free market.

In a truly free market, monopolies can only exist if one company can somehow manage to provide a particular product at such high quality and/or low price that no one else is able to compete.
That can be possible by creating more efficient production methods or business practices, in general.
But, it can also be possible by a company selling at a loss for a time so as to get rid of competition that simply can't sell at that low a price. This predatory pricing, however, is inherently unsustainable. And, the moment they increase their prices that opens the door for competition to once again return.