In all the information you will find here on the New Utopia Web site, nothing more clearly indicates we are on the right path, than the historical success of Hong Kong as a free market capitalist society. 

When the end of British rule came to Hong Kong on the first of July, it brought to a close what was a most embarrassing experiment, insofar as the world's politicians are concerned. Hong Kong was and is proof of the benefits of free market laissez-faire capitalism, without the mediation of politics. 

Since the demise of the Soviet Union, there has been general agreement in the world that capitalism is superior to socialism. Yet most countries, including those with the most advanced economies, allow only highly constrained and limited markets. There is little experience with true market capitalism such as that which has been practiced in Hong Kong. Only time will tell whether the Chinese will kill the goose that lays the golden eggs, by raising taxes and destroying Hong Kong's freemarket system. 

Hong Kong evolved as a totally open economy, which shunned protectionism and practiced unilateral free trade with the entire world. Hong Kong was also unique in free, unregulated labor markets, with no minimum wage laws, employment preferences, or unemployment compensation programs. Until overcrowding became severe, Hong Kong welcomed millions of immigrants, enough to strike terror in the hearts of many small-minded Americans, who hold a territory 10,000 times larger. There was never any "welfare" in Hong Kong, and taxes were imposed on a non-discriminatory basis with a flat rate of 15%. 

Hong Kong was an investors paradise. Of course, if you believe the nonsense spouted by the politicians in the United States, France, and other highly taxed welfare countries, you would have to suppose that free economy Hong Kong was a miserable place with massive unemployment, and where the poor suffered at the mercy of "corporate greed." True, there were no social benefits except charity hospitals. But, rather than being a drawback, this is part of the reason that Hong Kong flourished in prosperity. 

Never has so much wealth been accumulated by so many in so short a time! In 1945, after the devastation of World War II and years of Japanese occupation, Hong Kong was destitute. Hardly any place in the world was poorer, not even Africa. Yet, in one lifetime, Hong Kong has provided the proof of how an untrammeled free market, with low taxes, can raise living standards on a broad basis, even in a territory almost entirely without any natural resources. 

Hong Kong became prosperous entirely through entrepreneurship. It had no gas, no oil, no forests nor arable land, yet over a forty year span, per capita GDP (Gross Domestic Product) in Hong Kong skyrocketed from less than 10% per capita GDP of the leading industrial countries to almost 120%. As an example, between 1965 and 1995, per capita Hong Kong GDP rose from $2,279 (in constant 1987 dollars) to $22,527; a 10 fold increase. 

When Hong Kong reverted to China, it was the seventh largest trading economy in the world, with only six million people. By 1995, Hong Kong had surpassed all but two of the advanced economies in per capita GDP. Only Switzerland and the U.S. still had higher real incomes per capita. If it continues at the present rate, (and "IF" China doesn't interfere), Hong Kong will surpass the U.S. by the Year 2000. 

Hong Kong has had perhaps the worlds' freest economy, but no tradition of democracy. 

The rapid capital accumulation and compounding rise in income that has characterized Hong Kong since World War II would not have been possible under U.S. law. The most successful American investors are swimming with anchors, compared to their Hong Kong competitors. Each $5,000 in excess tax payments made annually reduces your net worth over 40 years by two million two hundred thousand dollars, if you could earn 10% annually on that capital. If you can earn 20% return, each $5,000 paid in taxes reduces your net worth by forty-four million dollars over your lifetime. Hong Kong's Hang Seng Index has enjoyed a compound rate of return of greater than 20% since it's inception. At that rate, the difference in net wealth between a Hong Kong investor and an American paying $77,500 annually in excess taxes is more than six hundred and seventy five million dollars over forty years. 

The United States used to prosper because it was relatively free in an unfree world. Now, without changing much itself, the U.S. is relatively unfree in a much freer world. This creates a competitive condition, which tends to favor an enclave like Hong Kong, which practicestrue free market capitalism, rather than a welfare state like the U.S., which is committed to burdensome taxes, which penalize success. 

We will state once again; "He who governs least, governs best." Our constitution will assure that New Utopia is able to prosper, without the burden of a legislative quagmire, which is the main reason for the decline of many of the democratic countries of the world. 

Our goal is not to emulate Hong Kong, but to take the best from it and the other prosperous countries and governments. No doubt some will call us (and we have thought of ourselves as) the Hong Kong of the Caribbean, the Venice of the Caribbean, and/or the Monaco of the Caribbean. The truth of it is we shall surpass all of these. We need only persevere, to become the most successful country ever conceived. 

Prince Lazarus