Saturday, October 11, 2008

Economic Downturn + Minimum Wage in HK = What a Deadly Combination

According to the Sunday edition of Ming Pao:


Another story in the same paper, it reported that:


Alright, let me get this straight, folks here in HK want minimum wage to be introduced right around the time when the ripple effects of the unfolding financial crisis in the US begin to affect the local economy. Nice timing, indeed, eh? Guess if minimum wage were indeed introduced soon, my sense is that uemployment might surge up to say 7-8 percent or even low double digit number.

Just when HK needs all the flexiblity required for prices to adjust efficiently and effectively to the large negative economic shock originated from the financial crisis, some folks here actually believe that instilling inflexible prices is a good thing for Hong Kong people. Shame on them!

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