Question

Milton Friedman felt the government of Hong Kong was relatively successful in 1979, because:

it did not regulate the economy and allowed unsuccessful firms to go out of business.

it was pro-business, and would not allow any Hong Kong firms to go out of business (become bankrupt).

it was controlled by brilliant and effective regulators from the UK.

it transferred money from the rich to the poor, thus reducing poverty.

Answer 1

Milton Friedman felt that the government of the Hong Kong was relatively successful in 1979, because it did not regulate the economy and allowed unsucessful firms to go out of the business

In the 1970's the openness of thier economy was very high so it attracted more investors around the world. This makes Hong Kong as the hub of many global comapnies. The government intervention in the econmy was very low at that time. The government did not engage with the industrial planning of their country rather they pre-occupied with the social spending in the country. This has made significant changes to their economy.