Expenditure

On our way back from Macau, I noted the ferry passed a big chunk of land before we arrived at the TST pier - it was the (later-to-be) West Kowloon Cultural Center.

"You can't promote the cultural standard of a society by simply building a grandiose theatre." I said to myself, "After all, there may not be a sufficient number of art performers - not to say audience."

But I was completely mistaken. The Cultural Center was not built to promote cultural activity but economic ones. No, it's not the center, but the construction per se which was the point. With the recent tsunami, our government is more eager than ever to keep the rate of unemployment down (especially amongst the group with low technology). It is also the classical Keynesian teaching that increasing government expenditure - in construction, for example - would give a kick on to the local economy in the period of depression.

For once I seem to understand what our Mr. Tsang means. It is probably also because of that British economist, our CE goes seriously for the legislation of minimal wage. As pointed out by John Kaynes, in order to boost employment, wages had to go down. However, that would reduce consumer demand, which would in turn reduce business sales revenues and expected profits. Investment in new plants and equipment would decline. In short, instead of raising business expectations, wage cuts could make the matter worse.

It all sounds incredibly simple, so much so I (almost) have a hallucination that our government could solve all problems of the society by following every line of John Kaynes' teaching.

Alas, do you know why did Zhao Kuo (趙括) die ?