The View | No wonder Hongkongers are frustrated when the system is so unequal, unaffordable and uncaring
- Hong Kong’s youth and its middle class no longer believe in upward mobility and see little but more competition ahead.
- Facing economic insecurity and disconnect from older generations, they turn to protests as a way of belonging. A new social contract is needed to restore faith
Hong Kong is a cautionary tale of globalisation gone wrong. Distrust of government and other institutions of authority has enabled the rise of populism and tribal politics.
Hong Kong consistently tops the charts for economic freedom, ease of doing business, educational attainment, life expectancy and economic connectivity. Hong Kong also receives dubious accolades as one of the most unhappy, stressed, unaffordable and unequal cities.
As a gateway for cross-border trade and investment flows, Hong Kong’s economy has generated great wealth. However, its low-tax environment and conservative style of government, reminiscent of Thatcherism, has not addressed the deep divide between globalisation’s winners and losers.
Owners of capital capture the biggest share of the pie through profits, dividends, rent and other income generated from capital, most of it exempt from tax. However, a growing share of the middle class now feel they do not have equal opportunities and are powerless to change the system.
Young people are taught to be competitive in the education system. But even the ones who do everything right face depressed wages and job insecurity, competing against immigrant talent and, in future, more efficient, lower-cost machines.
