In keeping with this idea, experts suggest that a large portion of the funds will likely be devoted to savings or expenditures abroad, where their immediate inflationary effects should be modest.
For example, Su Weiwen, head of the Economics and Finance Department at Hong Kong's Hang Seng Management College, told reporters that after savings and travel he expected that less than one half of the funds would make their way directly back into the Hong Kong economy. And, his estimates are corroborated by a recent questionnaire issued by the Hong Kong Federation of Youth Groups to 803 Hong Kong residents between the ages of 18 and 30. Of those surveyed, roughly 25% said they would place their cash in savings, while an additional 10% said they would spend it on travel or tuition. Moreover, further anecdotal evidence from interviews across Hong Kong also suggests that most residents probably do indeed intend to save some or most of their government payday.
Similarly, a recent survey by Hong Kong Business World found that more than 70% of business people support the move, while another survey found that general levels of hope rose after the announcement of the handout.
Hong Kong's media has also been quite positive about the coming cash handout, with a number of newspapers praising the government for its responsiveness to the demands of its citizens, openness, and democracy. Hong Kong's Wenweipo, for example, expressed confidence that the city could learn from Macau's experiences and called the plan one that took the common people as its base.
However, despite general optimism about the handout and its effects, it is clear that obstacles remain in the way of the plan's successful implementation. For one, the scheme represents the first time in Hong Kong history that the city government has given a cash handout to all of its citizens – an act that could lead to corruption, exploitation, or both if not planned properly. And although many other countries have implemented similar cash handouts (Singapore, Macau, Taiwan, and the United States, to name a few), it is key that Hong Kong's administrators learn from the experiences of their predecessors if the plan is to go off successfully. Macau in particular would make an excellent example to learn from, given its proximity to Hong Kong, its cultural similarity to Hong Kong's residents, and the frequency with which it has implemented cash handouts over the last decade.
However, despite hope that the handout may help alleviate the pressure felt by families coping with Hong Kong's ever-higher prices, the plan is only a one-off payment and not expected to become a regular policy. If Hong Kong's residents are to find a long-term solution to the city's rising inflation and wealth gap, they will likely have to find it elsewhere.
