"Small government, big market" ≠ "positive non-intervention policy"?

"Big market, small government" ≠ "positive non-intervention policy"?
"Big market, small government" ≒ "positive non-intervention policy "?
"Big market, small government" = "positive non-intervention policy "?

HKSAR's Chief Executive Donald Tsang said the philosophy of "big market, small government" has replaced "positive non-intervention" governorship. I was confused as a result of his such recent remark. I think the rationale of "big market, small government " should be equivalent to "positive non-intervention policy" or at least roughly equal in terms of economic jargon. I think Mr. Tsang is interpreting the same concept.

"Free market" operation means the allocation of resources of the economy reaches its equilibrium and optimal state through the non-intervened market mechanism.

In order to achieve the efficiency of allocation of resources, it is best to let the market (invisible hand) adjust itself. The size of government (visible hand) should be kept as small as possible of course in this way.
Therefore I see no difference between the two concepts (or the two slogans?) in terms of their definitions.

The great philosopher of the classical liberalism -- F. A. Hayek who opposed the socialism and command economy wrote in his book "The road to serfdom" that for the non-restrained expansion of the government authority and the use of a "planned" economy system to solve the three basic economic problems (what to produce, how to produce and for whom to produce), the eventual outcome is disastrous and leading to the road of serfdom...

His prediction has been testified by the fact of the failure of the implementation of socialism and the collapse of communism in the past decades in Mainland China, Indochina, USSR and Eastern European countries. The situation is even worse in Cambodia under the ruling of Khmer Rouge's Pol Pot regime in the 1970s. It was catastrophic as a human purgatory created that time. It is even worse than that leading to the road of slavery.

Socialism is no way out! The policy of government intervention is no way out!

In fact, the role of an efficient governmental body is only as a football notary in formulating and promoting market competition. Making relevant rules and regulations as well as clearly defining property rights are the right things for the government to do. In a nutshell, the government is neither the Buddhist goddess nor the all mighty God.

by tcwong© http://wongtc.blogspot.com/

Taiwan's Bian and Thailand's Thaksin Falling Down!

Depose the President Chen Shui-bian in Taiwan through peaceful siege procession and Depose the Prime Minister Thaksin in Thailand through military coup .

In Taipei of Taiwan, millions of protesters laid siege procession to the presidential house to call on President Chen Shui-bian to step down over a series of scandals. The leader of the campaign, Shi Ming-the, has called on supporters and opponents of the president to respect each other's views.

On the other hand, the Thai coup in Thailand sparks international concerns. The Thai military forces took the political arena and grabbed the power in order to overthrow the Prime Minister Thaksin.

Looking at the two issues in parallel, it gives me some inspiration. Even are they independent issues but they have some common perspectives in nature. It is just a matter of social choice from the democracy and dictatorship spectrum. Which is better for our society? How can our community be effectively governed? Is the democratic system in modern civilization including the United States mature enough? At what price for a mature democratic constitutional system be established? Should the successful implementation of democratic system necessarily be at the expense of economic efficiency? Should there be prerequisites leading to a more civilized and advanced democratic system? It seems a shortcut through dictatorship coup as in Thailand, and on the other hand, a long and tortuous road in Taiwan to achieve some desirable goals --- anti corruption and anti power abuse of the governor and his or her relatives.

Obviously, Thailand has a longer history of free elections than Taiwan. Free election has been implemented in Thailand since 1973 and Taiwan has never had its presidential election until 1996. However, it seems more mature in Taiwan (Red coup) than in Thailand (military coup) in this aspect as learnt from what just happened around. It is really a paradox of democracy.

Is it really “power corrupts” and “absolute power corrupts absolutely”? I forgot who made this dictum.

Most Taiwan people (at least those in red) look so rational in the anti-corruption campaign and their efforts will pay in some day. This may be a significant milage in the course of long Chinese history. Their appeal is justified and it gave me a valuable lesson of democracy in deed. Be the wish of long farewell to tyrant and dictature (no matter it's democratic or dictatorial) come true! Also be the remarks of "Of the people, By the people and For the people" * behind a democratic country substantial and not just our slogan!

* Quoted from Abraham Lincoln's remark in dedicating the military cemetery at Gettysburg: "that we here highly resolve that these dead shall not have died in vain--that this nation, under God, shall have a new birth of freedom--and that government of the people, by the people, for the people, shall not perish from the earth."

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Both US trade deficit & China trade surplus prevailing!

Another record-breaking trade deficit:

U.S. reached a huge trade deficit record of 68 billion U.S. dollars in July 2006 that higher than the 64.8 billion U.S. dollars in June.

On the other hand China's trade surplus has risen to a new record high:

In August China's trade surplus has risen to a new record high to 18.8 billion U.S. dollars. From January to August 2006, China's total trade surplus was 95.65 billion U.S. dollars and the gross value of imports and exports reached 1.1046 trillion U.S. dollars during the period.

Flooding the booming economy with cash, in fact China has enough foreign reserves and thus experiences appreciation pressure in the Renminbi currency. The surplus scenario took the Renminbi to its strongest since July of last year. The policy maker (People's Bank of China Governor Zhou Xiao Chuan) should find way to curb foreign-exchange reserves, otherwise China would suffer loss from holding such a huge amount of foreign reserves which consists mainly in the form of U.S. dollars.

However, the appreciation process seems to be slow due to the concern of the impact on the economy. The idea of linking the HK$ to Chinese yuan is dangerous at the moment since Reminbi is not a freely tradable currency in the foreign exchange market. The action may lead to the depreciation of the asset value of the HKSAR (just vs the appreciation of the currency).

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