[ixtis7]

Sure, I agree, but it's hard to imagine the multiplier for the 'externalities' is 2x or greater. Singapore is not some horrific hellscape where I couldn't live as I do here. Nor is Hong Kong (present situation there not being due to lack of tax revenue). They're educated (perhaps even better than in the UK), healthcare would be accessible to me, infrastructure is good. Heck, Singapore even has a massive public housing umbrella that goes beyond anything in the UK. So where is all the money here going?

[pirocks]

There is a belief among many that the current situation in Hong Kong is caused by the housing situation in Hong Kong. Part of why taxes are so low in Hong Kong is that the government profits from the housing situation(by owning most of the land and/or having arrangements with those who own all the land).

Additionally your two examples are both high density countries, and may not generalize to a country like the UK. Also worth noting that these countries give up a fair bit in civil liberties.

[lexs]

Singapore has rougly 5.5m inhabitants and 780km^2 compared to the UK 67.5m and 242000km^2, slightly different situation, interstingly both your example are ultra high density, basically city states. Not everyone can be financal hubs for other countries...