Saturday, October 24, 2009

Inequality in Hong Kong

Gini Index in Hong Kong
As proof that inequality in Hong Kong has worsened, the Gini index is cited as evidence. The Gini index is a statistical measure of income inequality. The number ranges from 0.000 for perfect equality and 1.000 for perfect inequality.
The two Gini indices being cited for Hong Kong are 0.434 in 1996 (see UNDP) and 0.522 in 2003 (World Bank). The fact that the Gini index went up is taken as proof that Hong Kong has become more unequal.
The Rich group
Dividing the population into 10 equal-weighted decile groups, the census department found the median household income for the richest 10 percent of Hong Kongers was HK$78,000 last year, compared with HK$2,400, or 32.5 times more, for the poorest 10 percent.
By percentages, the richest group of households, or top 10 percent income earning families, represent 41.4 percent of money made by the entire population last year, compared with 0.8 percent earned by the bottom 10 percent. That indicates the richest group of people earns 51.75 times more than the poorest.

The poor group
In terms of household income, 205,515 households, or 9.2 percent of the total number of families, earned less than HK$4,000 a month last year, up from 123,869 households, or 6.7 percent, in 1996.

At the other end of the spectrum, 378,473 families had more than HK$40,000 of income last year, representing 17 percent of all local households, up from 278,703, or 15 percent, in 1996.
I believe that what even the poorest people in Hong Kong can purchase in terms of goods and services are far above and ahead of the average person in China or Mexico. Thus, the poor people in China and Mexico can be said to suffer from absolute poverty, whereas the people in Hong Kong suffer from relative poverty. This would not be reflected in the Gini index alone.

Some of the single parent’s kid is deeply suffering in poverty; you may not believe that there is someone who has not tried eating a Hamburger in Hong Kong. Yes, there is!!

Well, I heard another kid that has only HKD7.00 a week for his only expenditure, coming with some more richer student fellow, he might be being isolated and this will hurt him, if he can take it positive or his moth could have time to take care this kid, he might spend more time for studying, and hopefully one day he can be having a better education and thence he might have a chance to be independent financially.

Well, how to solve this issue with over 1,000,000 poor people in Hong Kong? That may be a toughest topic for the chief executive!

In my mind there is no short term way to change this phenomenon, unless the top 1 percent of the riches people can donate 10% of their treasure into this society, and this will ease the problem for 5 years, as a long term , we need to rely on the Education, minimum wager control, creation for ore job for the poor even with Government subsidizing, Change a bit on the taxation scheme…Flat rate of 15% is too low for these who make more than 1 million a year!!

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