Income inequality

Hong Kong Gini coefficient (1971 - 2011)

Income inequality in Hong Kong is 0.539 in 2016, which is the second highest in the world following New York City.

There are several reasons behind this huge gap between the rich and the poor.

1. There is not a comprehensive retirement system for the elderly. Also, the safety net system for the needy is not well developed.

An elderly collects cardboard to pay for the rent in Hong Kong.

2. Skyrocketing housing prices also creates a substantial divide between those who own a property and those who do not.

Due to the ever rising housing prices, buying is not an option for most people, and most of the income each month goes to rent payment.

How income inequality will affect Hong Kong

Rising income inequality can lead to social unrest. In 2013, there was a peaceful protest called as “Occupy Central” (similar to the protest, “Occupy Wall Street”). One of the primary concerns expressed by protesters is the income inequality and astronomical housing prices.

Occupy Central movement in 2013 (Central is a financial district of Hong Kong, similar to Wall Street in New York City)

http://money.cnn.com/2014/11/06/news/economy/hong-kong-income-inequality/index.html

http://www.scmp.com/news/hong-kong/economy/article/2097715/what-hope-poorest-hong-kong-wealth-gap-hits-record-high

http://www.scmp.com/comment/insight-opinion/article/2027778/hong-kongs-appalling-wealth-gap-burning-fuse-revolution

http://www.scmp.com/news/hong-kong/article/1604461/top-10-moments-occupy-central-so-far