History: John Cowperthwaite, the genius

We are all worried about the financial crisis. Our future is uncertain, there’s no jobs, taxation is increasing. When we can’t find answers, we must look to the past. That’s why history is so important to the society. John Cowperthwaite, sorry Sir John Cowperthwaite, is an example to follow this days. He is well known for turning postwar Hong Kong into a thriving global financial center. How? Well, introducing free market economic policies. This British man were the Financial Secretary of Hong Kong from 1961 to 1971. Cowperthwaite’s mission were easy to understand, but hard to put in practice – create economic growth in that Asian faraway land. He stopped and analysed. Cowperthwaite found out that  the economy was recovering swiftly without any government intervention. He understood the lesson and as Financial Secretary he put in practice the positive non-interventionism. So, the government just have to invest in infrastructures, making the country attractive to investment. The state’s income resulted from the VAT (value added tax). We can think that might be not enough, but with this market rules the consumption is very high.  The definition of this theory, by Sir Comperthwaite himself – “In the long run, the aggregate of decisions of individual businessmen, exercising individual judgment in a free economy, even if often mistaken, is less likely to do harm than the centralized decisions of a government; and certainly the harm is likely to be counteracted faster.” He was really important to Hong Kong growth and the people recognize his work. Is easy to see in local shops busts with Comperthwaite’s face. Maybe this theory only works in small countries, but this positive non-interventionism idea might be part of the Europe’s crisis solution.

2 thoughts on “History: John Cowperthwaite, the genius

  1. Can I just say what a relief to find someone who truly knows what theyre talking about on the internet. You surely know the best way to bring an issue to light and make it important. A lot more people today should read this and understand this side of the story. I cant think youre not a lot more common simply because you unquestionably have the gift.

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