Handout won’t fight inflation — it will divide society

Financial Secretary John Tsang’s budget promised HK$6,000 to every eligible citizen. Economist Lee Kui-wai says the handout does nothing to fight inflation and will divide society. The main driver of inflation, he argues, is imported inflation — not excessive local consumption.

Why won’t it fight inflation?

Inflation is driven by imported inflation — mainland and global raw-material prices — not by strong consumer spending. Handing out cash only boosts consumption demand; it does nothing to tame prices.

Why would it divide society?

Some citizens are happy to receive HK$6,000; others see the handout as a political move that can’t fix deep problems like wealth disparity. Lee says the divided views on the handout will deepen social rifts.

Where should the money go?

Lee suggests investing in long-term measures — education, healthcare and social welfare. A one-off handout is temporary relief, not a cure.