While we are talking about the amount of money to sustain a family of four, you may not aware of the fact that this argument comes from the classical theory of Adam Smith, who stated that the minimum wage of a country is generally the amount of money sufficient for the subsistence of a family of four.
(Actually it was four-and-a-half in The Wealth of Nations, when childhood mortality was considerable).
Oh, it works well - in a society with free competition (I mean employers competing for labouring force), without massive flux of external cheap labour, and without the competition from technology. Alas, computers and other electronic gadgets do not need money to support a family of four - unless you have the curious habit of buying four at a time. (See http://ccszeto.blogspot.com/2009/01/employment.html)
That's all for 18th century economy. Let's apply the modern game theory and consider the cardinal question: What would happen if we set the minimum wage at an amount that could sustain a family of four ?
I shall leave it to your imagination.
Wednesday, March 31, 2010
Tuesday, March 30, 2010
CSSA
You probably think I was not in my right mind for having the suggestion that I put up yesterday.
Seriously, I have the same feeling, although I could not easily find where I was wrong.
One may suggest the salary that we are now giving to our overseas maid does not support a family of four in Hong Kong.
Alas, if you follow that argument, the minimum is easily determined: It should be the amount of money that a family of four could obtain if they apply for the Comprehensive Social Security Assistance (CSSA) - which is obviously sufficient to sustain a subsistence (however miserable it is).
Well, you may add a certain percentage to that yardstick amount. That's a minor point.
PS. You may think it is not appropriate to compare the minimum wage to CSSA. When you consider the effect of having a minimum wage, there is, inevitably, a substantial impact of having CSSA as the alternative of being employed.
Seriously, I have the same feeling, although I could not easily find where I was wrong.
One may suggest the salary that we are now giving to our overseas maid does not support a family of four in Hong Kong.
Alas, if you follow that argument, the minimum is easily determined: It should be the amount of money that a family of four could obtain if they apply for the Comprehensive Social Security Assistance (CSSA) - which is obviously sufficient to sustain a subsistence (however miserable it is).
Well, you may add a certain percentage to that yardstick amount. That's a minor point.
PS. You may think it is not appropriate to compare the minimum wage to CSSA. When you consider the effect of having a minimum wage, there is, inevitably, a substantial impact of having CSSA as the alternative of being employed.
Monday, March 29, 2010
Maid
When I first thought of the suitable minimum wage for local workers, I believed that's easy: It should be the same as that we put up for our Philippine or Indonesian maid.
The arguments are simple:
PS. The above discussion is, of course, based on the assumption that I agree to the legislation of a minimum wage- an assumption that may not hold water.
The arguments are simple:
- We could avoid the potential litigation with our overseas maid, who would possibly fire a complaint to the Equal Opportunity Council if the minimum wage is set to be much higher than their present one.
- (That is also morally correct - if you believe moral is a desirable character that really exists. After all, if you think a particular wage is too insulting for our local workers, why do you give it to your maid, whom we live under the same roof ?)
- It saves all administrative cost - including time and money - for deciding as well as regularly reviewing the minimum wage; it just goes with our maid.
- It simplifies the legislation procedure and save all the trouble of having future lawsuits between employers and employees.
PS. The above discussion is, of course, based on the assumption that I agree to the legislation of a minimum wage- an assumption that may not hold water.
Sunday, March 28, 2010
20
The heat on $20 per hour seems to have settled a bit.
I shall not discuss how much a minimum wage is suitable. (You may also use adjectives like appropriate, acceptable, desirable, adequate, or mutually agreeable. The catch is: the adjective you choose would inevitably affect the number you come up with.) The debate is, in itself, phenomenon and should really serve as a teaching case for any university course on administration or political science - because it is the typical loss-loss situation for the government.
You see the point here ? If our Mr. Tsang is King Louis XVI (what a metaphor !), let's see the two sides of the argument:
I shall not discuss how much a minimum wage is suitable. (You may also use adjectives like appropriate, acceptable, desirable, adequate, or mutually agreeable. The catch is: the adjective you choose would inevitably affect the number you come up with.) The debate is, in itself, phenomenon and should really serve as a teaching case for any university course on administration or political science - because it is the typical loss-loss situation for the government.
You see the point here ? If our Mr. Tsang is King Louis XVI (what a metaphor !), let's see the two sides of the argument:
- The right wing believes that legislation to set up a minimum wage would rock the ship of free economy so much that it will get wrecked.
- The left wing argues that legislation in the present format, would not truly protect the low income group - either the wage would be set at too low a level, or the rich employer would use every trick to get around the law.
Saturday, March 27, 2010
Surgeon
Stayed up late in the night with Vivian to finish with some homework of Euterpe.
(Yes, homework for a pre-nursery kid !)
It was a paper craft of Easter egg with a little chick inside. Our task was to cut out all the parts from a big sheet of paper and stick them together. (To be fair to the kindergarten, Vivian chose this amazingly difficult item.) Because many of the pieces were rather small and delicate, I had to use double-sided adhesive tape rather than a simple glue stick.
When we were almost done, my wife said, "You're really meticulous with all these bits and pieces. Have you ever thought of becoming a surgeon ?"
"Yes, of course, I have thought of it," I remarked, "But I gave up that idea immediately because I have some hand tremor. Furthermore, I soon came to realize that the market value of a surgeon declines quickly once he gets old, while that of a physician continues to increase with age. And, above all, a second or third call surgeon has to do most of the things, while a second-call physician could already take a supervising role !"
The last term is, as you may notice, the same as sit back and relax.
PS. Many of my friends know that one of the wildest dream is to become the external examiner of the surgical final MB. That's another story.
(Yes, homework for a pre-nursery kid !)
It was a paper craft of Easter egg with a little chick inside. Our task was to cut out all the parts from a big sheet of paper and stick them together. (To be fair to the kindergarten, Vivian chose this amazingly difficult item.) Because many of the pieces were rather small and delicate, I had to use double-sided adhesive tape rather than a simple glue stick.
When we were almost done, my wife said, "You're really meticulous with all these bits and pieces. Have you ever thought of becoming a surgeon ?"
"Yes, of course, I have thought of it," I remarked, "But I gave up that idea immediately because I have some hand tremor. Furthermore, I soon came to realize that the market value of a surgeon declines quickly once he gets old, while that of a physician continues to increase with age. And, above all, a second or third call surgeon has to do most of the things, while a second-call physician could already take a supervising role !"
The last term is, as you may notice, the same as sit back and relax.
PS. Many of my friends know that one of the wildest dream is to become the external examiner of the surgical final MB. That's another story.
Friday, March 26, 2010
Shoe
Our Mr. Tsang recently claimed that he loved to polish shoes; it worked well for relieving the stress.
Although his little habit seems not to be well received by the general public, I consider it a brilliant hobby - particularly if the deed is practised in the traditional Chinese manner.
No, I'm not kidding. Let's face it. If each of us publish the shoes of one another person each day (even if that one has nothing to do with us directly), we would have an entirely different world of harmony.
You may argue that's not the original meaning of shoe polishing. Nonetheless, may I remind you, we could never guarantee an immediate and desirable effect after touching a pair of shoes. If you make it a habit, you will soon be able to give compliment to unrelated people.
(My friend BK always says that she finds it difficult to tell when I am speaking the truth and when I say the things ironically. She's certainly right - I have the same difficulty.)
PS. In a teamwork - notably the football (soccer I mean) game - the task of shoe polishing is particularly important. More often than not we have too many excellent players who could score, but very few are willing to do the donkey task, which, in the slang of 1960s, was called "擦鞋仔波".
Although his little habit seems not to be well received by the general public, I consider it a brilliant hobby - particularly if the deed is practised in the traditional Chinese manner.
No, I'm not kidding. Let's face it. If each of us publish the shoes of one another person each day (even if that one has nothing to do with us directly), we would have an entirely different world of harmony.
You may argue that's not the original meaning of shoe polishing. Nonetheless, may I remind you, we could never guarantee an immediate and desirable effect after touching a pair of shoes. If you make it a habit, you will soon be able to give compliment to unrelated people.
(My friend BK always says that she finds it difficult to tell when I am speaking the truth and when I say the things ironically. She's certainly right - I have the same difficulty.)
PS. In a teamwork - notably the football (soccer I mean) game - the task of shoe polishing is particularly important. More often than not we have too many excellent players who could score, but very few are willing to do the donkey task, which, in the slang of 1960s, was called "擦鞋仔波".
Thursday, March 25, 2010
Absence
Don't get me wrong. I am all for the report of our friends from the EMSD.
Come on. Let's face it. With due consideration of the environment, what better do you expect them to say ?
And, at least, they gave an excellent demonstration of a basic principle in logic to the lay public: Absence of evidence does not mean evidence of absence.
In fact, their spokesman did really try hard to put forward the idea - in a most subtle but psychologically impressive manner. Now, everyone could master this argument.
An excellent lesson of general education, I would say.
Maybe their department head should be promoted to take charge of the Education Bureau.
PS. You may consider our friends are actually illustrating to us insufficient evidence does not mean evidence of absence. That's largely beyond the point.
Come on. Let's face it. With due consideration of the environment, what better do you expect them to say ?
And, at least, they gave an excellent demonstration of a basic principle in logic to the lay public: Absence of evidence does not mean evidence of absence.
In fact, their spokesman did really try hard to put forward the idea - in a most subtle but psychologically impressive manner. Now, everyone could master this argument.
An excellent lesson of general education, I would say.
Maybe their department head should be promoted to take charge of the Education Bureau.
PS. You may consider our friends are actually illustrating to us insufficient evidence does not mean evidence of absence. That's largely beyond the point.
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