The Viagra effect of the HK$10,000 handout

Ben Kwok March 04, 2020 11:35

Money can’t buy you love – not even popularity – it seems.

And so Financial Secretary Paul Chan Mo-po has yielded to popular demand by unveiling a HK$10,000 cash handout for all adult Hong Kong permanent residents in his budget speech.

You would think Hongkongers would be jumping for joy and praising Chan to high heavens for his generous offer. After all, who wouldn't want to have such extra moolah in these extremely trying times?

Indeed, almost everyone got excited when it was announced last week, but the pleasant feeling it generated soon dissipated as people started considering what real impact it would have on their lives.

As it turned out, the emotions it bred were as volatile as the Dow Jones Industrial Average in the past week. The elation it brought lasted only as long as the effect of Viagra on feeble but yearning men.

According to a survey conducted by the Hong Kong Public Opinion Research Institute, Chan's budget speech got a net satisfaction rate of 19 percent on Feb. 26, when it was unveiled. But in the next two days, after media and commentators discussed the budget, that plunged to negative 22 percent, or down by 41 percentage points.

As such, the budget's satisfaction rate was 54.1 on the day it was annnounced, but soon sank 13.9 points to 40.2. This represents an all-time low since records began in 2008.

That's certainly not very good news for Chan, who is being bruited about as a potential successor to the throne now uneasily occupied by the embattled Chief Executive Carrie Lam Cheng Yuet-ngor.

For one thing, the budget, partly as a result of which the government will incur a record deficit, won't drive away the raging coronavirus outbreak, nor will it ease the people's dissatisfaction with the Lam administration after months of social unrest.

Hongkongers have never really been satisfied with cash handouts, especially when they realize that it's their money that the government is dishing out.

And so while the disbursement is aimed at boosting local consumption and easing people’s financial burdens, most of the recipients are probably going to keep the money in the bank because no one really knows when this Covid-19 epidemic will be contained, or in the case of those who have had their salary slashed or have lost their job, use it to make ends meet.

It's highly unlikely that people are thinking of spending the amount on a smartphone upgrade.

Besides, we won't get our hands on the cash until summer – July at the earliest.

The government is also handing out the amount to permanent residents who are currently living abroad, and is thinking of also granting it to non-permanent residents in need of financial assistance.

Meanwhile, many are grumbling about the nearly 25 percent increase in the budget of the police force, a clear manifestation of the government's gratitude for its role in battling against dissenters during the months of unrest. 

The additional money, as a matter of fact, will be used to recruit more men and buy special equipment to deal with the protesters.

As for the young people who have hounded the Lam administration, no candies for them. What did they expect?

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CG

Ben Kwok

EJ Insight writer