A recent plan has passed in Hong Kong to raise rent for low income tenants by 10%, to offset this increase the government has also supplied a stimulus to allow them to not have to pay this month's rent. The government in Hong Kong has already provided low income housing with 2 months of free rent, raising the total to 3 months on the year. The fact that low income tenants haven't had to pay a quarter of their rent this year has led to outrage across the region, and demanding them to pay. This stimulus does not come to much surprise after considering that median monthly rent in Hong Kong is a surplus of $1,500 compared to the $152 median average in the United States. This outrage has led to a public persecution of people taking advantage of welfare housing in this area.
This article is interesting because it shows another situation where subsidies are being misused and providing people with a way to take advantage, much like the Texas cotton situation presented in Rivoli's book. This article is also interesting because it provides an interesting insight into the difference in the distribution of wealth between an area like Hong Kong and a much larger area like the United States. Welfare housing refers to a median of $150 rent a month, while in Hong Kong it applies to a median average of over $1,500, by considering these two statistics alone it is easy to see how the population of Hong Kong worth of public support is in a whole different bracket compared to the United States.
http://www.cnbc.com/id/47640064
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