, Columnist
Hong Kong's the Canary in the Coronavirus Economy
The city was the first to adopt direct cash handouts. Its long-term wage subsidies may be another harbinger.
This is going to be a long haul.
Photographer: Paul Yeung/Bloomberg
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Hong Kong led the world in adopting helicopter money. Now the city’s long-term wage subsidies have again put it at the forefront of global efforts to blunt the impact of the coronavirus. Other economies should pay attention.
The government said this week that it will fund 50% of affected workers’ salaries for six months, capped at the equivalent of $1,160 a month. With the exception of Australia, most countries have offered shorter-term relief. Hong Kong’s spending package reflects recognition that the economy will need support for longer than initially thought.