Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Summary on 千規律,萬規律,經濟規律僅一條 In this chapter, N.S. Cheung point out that under any economic system, there is only one rule to determine the wealth of a person. No matter planned economy, capitalist economy or even mixed economy, the rule is the same, which is only maximizer will survive, those who do not behave as maximizer will be eliminated. He further elaborates he point by saying in any kind of society, people compete for scarce resources and rules are required to determine who win and who lose. Those rules are said to property rights. Under the rules of property rights, there would not have any economic waste to the society, which a loss in the potential income that no one claims would not be found. Since resources are allocated to the highest-valued use, the economy will become prosperous. He use an example in USA to illustrate under government intervention, people have to adopt non-price competition to determine who win and who lose. In the process of non-price competition, there is rent dissipation, leading to a loss in potential income which no one claims, which is an economic waste to the society. Therefore, by only using price-competition to allocate resources can prevent economic waste. One essential requirement for price competition is that Private Property Rights exist, because if private property rights are not well-defined, people with great influence to the society can get all the resources. To apply Cheung’s statement, we can use the example of public swimming pool in Hong Kong. During Beijing Olympics in 2008, the Hong Kong government adopts the policy of free of charge of using any public recreational facilities. A quota is set for the number of entrance every day for the public swimming pool. As result, long queues are found outside the entrance of the public swimming pool. Those who have more time to queue are more likely to enter the swimming pool free of charge, and non-price competition is adopted. However, time is wasted during the queuing. There is a loss in potential income because nothing has been produced to the society. Hence economic waste is created. After the Olympics ended, the Hong Kong government ended the free of charge policy. All people using the public recreational facilities must pay a fee to use them. Therefore, people need to pay for the use of the public swimming pool, and those who have the ability and are willing to pay the price can use it, so price competition is adopted and the swimming pool is allocated to the highest-valued users. No economic waste is produced and equilibrium is attained.