The ViewDominance of rich leaves Hong Kong labour with no voice

Embattled Chief Executive CY Leung's comments that democracy meant that the largest sectors of society would dominate the electoral process were widely ridiculed. Newspaper headlines screamed "Democracy would see poorer people dominate Hong Kong" highlighted the shocking statistic that half the wage earners in our World City earn less than HK$450 a day; some HK$14,000 per month.

Nevertheless, Mr Leung raised a serious and important illustration of the soft underbelly of our economy, which is that the owners of capital in Hong Kong are so dominant that the owners of labour have no voice.

Economics has an uncanny way of righting imbalances over time and the revolting students are merely part of this process. Students rebel because they are well educated, knowledgeable, articulate, energetic, not yet on the rat race treadmill and have the biggest stake in the future.

In the late 1970s, no less than superstar economist Milton Friedman held that capitalism was synonymous with success and that Hong Kong was its leading proponent. We were proud to say that if the cake gets bigger, it gets bigger for all. We were told, "Look at Li Ka Shing". "If I work hard, I can be like him one day!"

Yet income distribution, as propounded by modern-day superstar French economist Thomas Piketty, is getting worse over time as owners of capital continue to outstrip owners of labour.

Young people see that their escape strategies of hard work and education have been denuded or destroyed by technology that traps graduates in low-pay jobs. In 1986, a newly minted MBA could achieve three to four times their pre-qualification earnings, it is now just 1½ times. If you can find a job.