According to Ed Prescott, Nobel Prize winner in economics:
"Dr Prescott compared Hong Kong's lack of an effective competition policy to the US economic experience in the 1930s. He said deliberate cartelisation in the US "was about the only candidate we have for what led to the Great Depression".
Dr Prescott said the introduction of an anti-trust policy in 1939 helped lead to the pre-second world war boom in the US economy.
"Cartelisation depresses productivity and gives huge wages to half the population while the other half of the population misses out," he said."
Read more in today's SCMP.
Cartelisation, the main culprit of the great depression!? And antitrust law helped save the day for the US economy!?
Wondering what Milton Friedman would say about Ed's remarks. But then what do you expect, Ed is a real business cycle guy.
Yo, pro, then would you please explain what is so special about HK which makes it avert depression like what happened in the US in the 1930 without a competition law? And what account for its economic prosperity in the past decades instead of stagnation as suggested by you which would accompany a place without a competition law?