For many years, Hong Kong was ranked as the “freest economy”. However, Hong Kong’s income inequality is the largest of any developed economy in 2016 at a 45-year high. 20% of the city’s residents live below the poverty line, with the wealthiest households earning up to 44 times more than the poorest.
Despite being named a “cosmopolitan hub”, ethnic minorities living in Hong Kong are among the most negatively affected by the wealth gap, according to the Oxfam Inequality Report. With a poverty rate of 23%, it is said that this is caused by a low school attendance rate and the inability to speak Chinese. Other groups that suffer from the wealth gap are residents of subdivided flats, low-income workers, women, children, and the elderly.
The cost for housing in Hong Kong is also ridiculous. In a subdivided apartment, per capita living space can be as small as 48 square feet and the average Hong Kong housing still only has about 160 square feet per capita. In comparison, a New York apartment has more than 400 square feet and with a much lower price. Property prices continue to rise in Hong Kong, over 20 times of the median income and it doesn’t seem like it’s slowing down any time soon.
The wealthiest households and large tycoons in Hong Kong are also not being taxed enough by the government. Allowing them to maintain their position at the top of the economy.
Households in poverty are unable to afford good schools and therefore losing opportunities in the working world, continuing this vicious cycle in which positions in the economy remain stagnant.
Clearly, this is an issue that must be addressed by citizens of Hong Kong as well as the government, as Hong Kong is in need of an economic transformation. If nothing is done, it is clear that the rich will only continue to exploit their position at the expense of the poor.
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