ISSIA Magazine (Edition IV)

SIGN UP TO JOIN THE ISSIA MAGAZINE NOW!

INTERESTED IN WRITING ARTICLES ON SOCIAL ISSUES YOU'RE PASSIONATE ABOUT? WANT TO SHARE YOUR CREATIVE DESIGN IDEAS WITH OTHER STUDENTS? SCAN TO JOIN NOW!

Editor's note Economic security was selected as the overarching theme of Issue 4. The term refers to the ability of individuals, households or communities to consistently meet their essential needs and support a basic standard of living through a stable income. In light of its broadness, the team opened it to contributors’ interpretations, facilitating a flow of creativity, a diverse range of articles with minimal overlap.

While many are interested in the topic of economic security, particularly in more recent generations, few student magazine/newspaper articles have been produced on it. That being the case, we hope to bring a fresh, enjoyable perspective on economic security from students’ viewpoints!

In total, we have compiled 14 different articles touching upon the following subcategories: HK: Income disparity, food shortages, intergenerational, affordable housing Global: South Korea, Japan, USA, Russo-Ukraine, the Euro We feel that this blend of articles concentrating on Hong Kong and the world represents the ISSIA spirit as an international, HK-based organisation. The variety given also provides insight into all major sectors of the world, ensuring we have covered all the bases.

Health: Home health workers Technology: Digital divide Inequality: Poverty porn, UBI, migrant workers All 3 link strongly to economic security and such overlapping issues have proven to be at the forefront of our minds.

OUR TEAM

COVER ART Jamie Soo (STC)

DIRECTORS Alpha Ngai (CIS) - Editor-in-chief Angela Chan (OIC, UK) - Managing Editor Christine Chiou (KGV) - Coordinating Editor Tiffany Fu (DGS) - Coordinating Editor Bernard Shiu (DBS) - Content Strategist Katie Tam (YWGS) - Creative Director

DESIGN

CONTRIBUTORS

Typesetting: Ariel Suen (KGV) Erin Chan (STC) Jamie Soo (STC) Joanna Jang (IS) Megan Leung (RCHK)

Hana Chow (WIS) Vien Chan (KGV) Josephine Wong (CIS) Poko Lam (DBS) Abhay Venkitaraman (Warwick) Liz Lee (DGS) Vijay Narayanan (IS) Chloe Wong (IS) Gou Shing Yan (HKU) Samantha Law (STC) Vanessa Kan (DGS) Durva Kamdar (School of the Arts, Singapore) Ethan Choi (VSA) Kayla Chan (School of the Nations, Macau)

Illustration: Ariel Suen (KGV) Megan Leung (RC) Erin Chan (STC)

EDITORIAL

Durva Kamdar (School of the Arts, Singapore) Ethan Choi (VSA) Hana Chow (WIS) Jerry Luo (American Heritage Schools, Palm Beach Campus) Josephine Wong (CIS) Kayla Chan (SON, Macau) Poko Lam (DBS) Samantha Law (STC) Vijay Narayanan (IS)

About ISSIA The Inter-School Social Issues Association (ISSIA) is a youth-led non-profit based in the Asia Pacific. We cultivate global citizenship and empower young changemakers through peer-to-peer and project-based learning as the go-to hub for all things global issues. Currently, ISSIA has over 300+ members across 70+ schools.

Since 2019, with a focus on SDG 4 (Quality Education) and 17 (Partnership for the Goals), we've established more than 30+ projects as the largest youth-led organisation in Hong Kong. For example, 180+ articles on our website (issiahk.org), ISSIAMUN, a debate program, a docuseries, podcasts and Youth NGOs Conferences, where we connected 20+ youth-led NGOs through up-skilling workshops, panels etc.

At ISSIA, we aim to provide a different kind of education - we cultivate global citizenship and empower young changemakers through peer-to-peer and project-based learning. With this model - everything is youth-led and youth-operated, meaning peers share best practices in a collaborative space where we work towards the SDGs. We actively involve a large number of local school students in our team to provide co-curricular global citizenship education through a peer-to-peer model and project-based model.

We believe in the notion that the 'whole is more than the sum of its parts'.

As the largest youth-led NGO in Hong Kong, we have been working on cocreating a wider coalition and ecosystem of aspiring and leading changemakers in Hong Kong and elsewhere in the Asia Pacific.

table of contents Featured Articles

Money and Happiness - The Link Between Income Disparity and Wellbeing in HK

p. 7-9

How Does Economic Stability Impact Food Shortages in Hong Kong?

p. 10-11

Breaking Through Intergenerational Poverty

p. 12-14

Is There Actually Affordable Housing in Hong Kong?

p. 15-17

p. 18-20

South Korea: On the Verge of Another Debt Crisis?

p. 21-22 p. 23-24

Japan’s Economic Security Law — A Laudable Policy Antidotes for a Recession: US Economic Policy During COVID-19

p. 25-26

The Economic Cost of the Russo-Ukrainian Conflict

p. 27-28

Why the Euro Is Failing

Rising Wage Benchmarks for Home Health Workers

p.29-30

The Digital Divide

p. 31-32

Poverty Porn

p. 33-35

Arguing for Universal Basic Income Built by Dark

p. 3637 p. 38

Featured Articles

Money and Happiness - The Link Between Income Disparity and Wellbeing in HK

Social Tension It’s no surprise that income disparity goes hand in hand with fostering uneven levels of footing between citizens of different financial statuses. People of different backgrounds and lifestyles mingling together often serve to brew conflict and comparison. When these interactions get out of hand, those who are at the end of the ladder suffer more by comparison, dealing with the aftertaste of social tension and discrimination.

Illustration by Erin Chan

Social capital is defined as the network of relationships between citizens of an existing society, enabling them to communicate and function effectively. As social capital theory (Putnam) suggests, social capital often predicts a spread of positive social economic outcomes. However, when income disparity comes into play, this base framework for positive social interactions is at risk of failing. Social disparities discourage opposite sides from trying to understand and empathise with one another.

Apathy is a trigger point for crime and violence to occur.

Combined with the lack of trust, it is statistically proven that communities with higher levels of income inequality reported trends in higher crime rates- contributing further to the already increased suspicion, heightening levels of anxiety, and lack of security in their lives.

Such disagreements are also often reflected in the bodies of the community- poorer people segregated in specific neighbourhoods, with their wealthier counterparts in gated communities.

After all, nobody wants to feel ‘different’. As a result, social cohesion is reduced. This furthers unhealthy competition for resources in the community, lowering generalised trust with members of the society.

This collective withdrawal from civic life leads the disadvantaged to become more isolated from their communities, in turn forfeiting the sense of belonging and social collectivism that comes with it.

Furthermore, discontentedness with the ideals of a ‘divided society’ and feelings of unfairness project negatively on one’s view of the world, developing the onset of a negative mindset. When we feel that we’ve lost the protection, support and purpose that comes from our peers, it's harder for us to maintain a healthy mental state and cope with difficulties.

Feelings of Insecurity As humans, self-comparisons are inevitable- and we often use these relative measurements to determine our self-worth and personal improvement. Comparisons are a normal part of human cognition, giving us that small push to do better.

But when we start to draw comparisons about unchangeable and unreasonable things, the line between self-improvement and self-destruction becomes blurred. In a society with a disproportionately large wealth gap, the differences between both parties becomes too large to ignore, and comparisons often get out of hand.

Concerningly, these behaviours often stem from early childhood experiences. When all your peers come to school in flashy, new backpacks, you probably can’t help but notice how your dirt-soiled backpack sticks out like a sore thumb.

Needless to say, any child would feel flustered and inferior to their classmates. As these scenarios inevitably occur in their life, so does the familiarity of these feelings, until they know it all too well.

Associating material wealth with success, people with lower incomes generally become less confident in their abilities and personal attainment, and engage more frequently in self-loathing behaviours. One study reports that citizens in poverty often demonstrated characteristics of ‘negative selfstereotyping’, where they believed themselves to be low in competence relative to others. Furthermore, research suggests these effects are long-term. A longitudinal study done in the United States found those with a lower income predicted greater levels of negative self regard, even after 10 years.

Stigma and discrimination Following up on the backpack scenario- do you really think it’s possible for the kid to escape unscathed? A likelier scenario would throw in a few snarky comments of ‘Poor kid!’ or ‘Is your home as dirty as this?’, furthering their feelings of embarrassment and shame.

As stated above, income disparity breeds social tension, making it harder for both sides of the spectrum to understand one another. Nobody questions the outdated idea that poorer people are lazy and irresponsible, or that they’re unable to meet the expectations that their peers can.

Consequently, the bullying and harassment people from low-income backgrounds receive have disconcertingly higher rates than their counterparts. One study revealed that low-income backgrounds correlated significantly with victimisation, denoting that almost half of the respondents (45.7%) experienced bullying for being poor in the past.

Stigma can take place in various other forms, though. Research from the Institute for Education suggests that the influence of stigma can seep through classroom walls and fall in the hands of a teacher. Finding significant differences between teacher’s expectations and student performances, researchers found a trend in how children from more disadvantaged backgrounds were often perceived as less able than their peers. Coming from a person of authority, children may feel obliged to accept and internalise these beliefs, developing a fixed mindset on ability, potentially depressing their long term trajectory.

Added pressure in context Moreover, we have to realise that stigma is culturally rooted- different for every community alike their distinctive cultural characteristics and values they uphold. Unfortunately for us, the weight of our own Chinese beliefs and cultural norms in Hong Kong only digs these roots deeper.

It’s no secret that our community values hard work and quality of education more than anything- in fact, education and work is deeply rooted in Confucian values. The expectation that education and hard work will unquestionably pave the way to becoming self-sufficient in the future is omnipresent in our society- as a child, I’ve had aunties push me to study countless times, with the infamous phrase: “Study more! You don’t want to end up like that cleaner over there, do you?” Sure, at that time, it seemed like a harmless way to encourage me to study, but when this becomes a repeated incident for thousands of households across the community, it certainly does more harm than good, adding even more shame and insecurity to lower-income families.

Additionally, this dominant social value deters families from receiving social assistance they requiresolely due to the irrational belief that this meant they intentionally chose to put in less effort in working than their peers. In China, Dibao (Social assistance programme) recipients have been shown to live significantly more isolated and detached lives from the community compared to their nonrecipient peers. Similarly in Hong Kong, negative attribution has also discouraged eligible households from becoming recipients of CSSA (Comprehensive Social Security Assistance), for reasons such as believing recipients would become ‘lazy’ and ‘a burden to society’.The act of receiving help from the government is highly stigmatised, associating recipients with shame and unhappiness.

Tending to marketisation reforms, Chinese culture consistently boosts the Chinese value mian, while undermining the value lian. Prioritising social status and success over unbiased respect irrespective of background from others makes it harder for those with a lower social status to be considered as virtuous and respectable, let alone morally neutral. Unsurprisingly, the exceptionally high majority (58%) of Chinese citizens reported how they believed poverty to be caused by ‘laziness and lack of will-power’. Similarly, citizens from rural villages in China have also reported to be shunned by their community for having poverty and therefore, low suzhi- human quality. In an achievement-oriented society like Hong Kong, the expectation to be employed in a high-income job, to signify competence, is aligned with such ideals.

It also doesn’t help that cultural stigma surrounding mental illnesses make access for therapy, necessary medical advice and informational awareness harder for those suffering from the blunt of low income stigma. 41% of respondents in a survey conducted by Mind HK considered ‘lack of self-discipline and willpower’ a cause of mental illness, while 55% of respondents said they had received social stigma against mental health issues, contributing to the staggering 74% of mental health sufferers who do not receive any form of professional health. This leaves these low income families, particularly vulnerable to falling victim to social stigma, at an even further disadvantage.

Conclusion

However, what can we do, as of right now,

While it is true that those at poorer income levels are often predisposed to lower levels of mental wellbeing, this doesn’t necessarily mean they have to to address the decline in mental wellbeing? be.

Stigma, discrimination and insecurity all have Of course, one way to alleviate the implications of their one thing in common- they are usually rooted circumstances is to address the root problem- income in misconceptions and lack of understanding, disparity and poverty. Experts suggest that governmentso education is vital to bridging the gap intervention to increase wages and support for the between our perceptive differences. unemployed are critical to bridging the wealth gap.

How Does Economic Stability Impact Food Shortages in Hong Kong

By Chloe Wong

Illustration by Erin Chan

The food shortage crisis among people living in poverty is worsening in Hong Kong.

More than 1.6 million people in Hong Kong are experiencing poverty, and approximately 70,000 people among them do not have access to fresh meals daily, some aren’t even able to meet their basic nutritional needs. In this article, I will explore how economic stability impacts food shortages in Hong Kong.

A possible factor would be the expensive housing rent in Hong Kong. In 2018, about half of the housing rent in Hong Kong cost around 70 per cent of the median household income.

The coronavirus has affected the unemployment rate, increasing it to 5.83% in late 2020.

Moreover, Hong Kong has a low minimum wage of HK$37.5. A study done by the Hong Kong Council of Social Service has shown that around 71,000 of those who are in poverty would have to survive with less than HK$15 per meal, whilst a normal Hong Kong meal would cost around HK $60. This further proves that those who are under poverty wouldn’t even be able to afford a proper meal and would have to find less nutritious alternatives such as instant noodles or bread on a daily basis.

So what actually is economic stability?

Economic stability essentially means that an economy experiences constant growth and low fluctuations (Jayadi, n.d.) and that people are able to afford living essentials, in order to have a higher living standard. This is important as it allows people to have access to the essentials for living to have a quality life. An example of economic instability could be seen during the Covid-19 pandemic, when food prices were rapidly increasing and citizens were all panic buying, leaving the city with fewer food supplies than the demand for food, resulting in food insecurity. It was a rough time for many Hong Kong households, especially those where family members lost their jobs and were not able to afford overpriced foods.

In contrast, when the economy is stable and the unemployment rate is lowered, businesses' confidence will be boosted and more entrepreneurs will be encouraged to step foot into the food industry. It was shown that the catering business grew by an estimated 20 per cent after the government launched their consumption vouchers scheme that aimed to help relieve the economic pressure for families that are facing financial challenges. Statistics from the Hong Kong government have also shown that the total number of restaurant licences registered with the Food and Environmental Hygiene Department has even increased from 16,071 in 2020- before the consumption vouchers scheme to 16,165 in 2021after the scheme was introduced. This would allow more food products to be produced to feed the citizens of HK and help alleviate the problem of food shortage in Hong Kong.

To conclude, economic stability increases the supply of food and would alleviate the problem of food shortages in Hong Kong. Allowing more of those who are living under the poverty line to gain access to food and obtain the basic nutritional needs, will help to end malnutrition in Hong Kong and lead to healthier lives. This also benefits the population by having positive impacts back to the economy as well as social development. Through better provision and sharing of food, let us all support the creation of a better future for Hong Kong!

Breaking through intergenerational poverty

By Gou Shing Yan

We can start by tracing back to the beginning of education— our childhood. Even then, disparity between children in terms of education emerges in kindergarten and primary school. For many Hong Kong parents, their children's education is a race that starts as soon as they are born. In a city where toddlers have to fight their way into their dream kindergarten by joining playgroups and interest classes, children from low-income families are playing a losing game from the very beginning. Childhood is the prime time for building a good foundation for students’ further academic studies.

Illustrations by Erin Chan

When we are talking about education,

the first image that comes to mind for many might be stacks of brand-new textbooks, a shimmering school bag, and fancy stationery held by a well-dressed, energetic student.

Yet, has it ever occurred to you that for a group of underprivileged kids in Hong Kong, education may as well mean an unstable Internet connection, a blurred image on the tiny screen, and doing homework in a cramped subdivided flat? According to The Society for Community Organisation (SoCO), 237,100 out of 1 million Hong Kong children come from low-income families. In a city as affluent as ours, education inequality persists and continues to haunt generations of poor families, negatively affecting one’s economic security.

How does this economic insecurity hinder pupils in their pursuit of education? Is the current assistance provided by the government and NGOs doing any help? Let’s take a deep dive into these questions.

Unfortunately, for students from working families, their parents are busy making ends meet instead of providing much-needed guidance on their homework and assignments. Young pupils cannot be disciplined and are unable to cultivate the proper attitude toward learning

The situation is even dimmer for students from ethnic minority groups and new immigrants from mainland China, in which many of their parents can't communicate with locals. Not only does the language barrier prevent them from helping with their children’s homework, but it also hinders them from voicing out their needs and difficulties to teachers or NGOs, diminishing their chances of receiving the help they need from schools and communities.

With limited budgets, they are unable to assist their children by means such as hiring tutors, as their more well-off classmates often do. With a head filled with unanswered questions, it is no wonder that these children’s education falls behind, and they gradually lose their passion for studies from an early age.

As these students move to the next stage of their schooling, the gap in their learning continues widening. Secondary schools are sorted into different bandings, each receiving varying kinds of resources. While students in elite schools are surrounded by equally academically-gifted schoolmates and the best teaching resources, students from lower banding schools suffer from a significantly worse learning environment and are often looked down upon. It is common for secondary school students to seek private tuition to give them an edge in the public exam when they feel like teachers in public schools cannot provide the help they need. Yet, students from poor families have neither the time nor the money to do so as they often need to take up part-time jobs to save pennies for their families. The lack of free time also deprives them of opportunities to join extra-curricular activities to broaden their horizons and develop soft skills.

In today’s day and age when degree inflation becomes a problem, many employers seek candidates with excellent personalities and social traits, like interpersonal skills and selfconfidence. To build up these traits, students must have more exposure to social events and various activities. Young people from low-income families will inevitably fall short in the labor market because of that When these children enter adulthood, it becomes increasingly hard for them to put their feet back into education. Even the comparatively fortunate ones who are admitted by universities have to spend their four years of studies torn between family responsibility and schoolwork. Worse still, the tuition fee for pursuing higher education is unaffordable for most students from grassroots families. They may have to borrow loans to fund their studies. This financial burden takes a toll on students from poor families, creating a huge debt for these youngsters before they step into the workplace. As a result, they have to struggle through their twenties spending a large number of their salaries repaying debts, unable to save for their future For those who wish to pick up their studies after entering the job market, the road is equally full of hardship. Without a university degree, these young people are most likely to get lowpaid jobs with long working hours. After such a long day of labor-intensive work, it is almost impossible for them to squeeze out that extra energy to study for another two to three hours, not to mention that many of them may have to use their wages to support their own families.

The idea of continuing their studies may sound appealing, but it is quite unfeasible to many.

With that being said, the prospect of breaking through intergenerational poverty isn’t all gloom and doom. To cater to the basic learning needs of students, the government has various types of subsidies to cover their daily expenses. The textbook, transport, and meal assistance scheme ensure students of all economic backgrounds can have an equal chance at education. The Child Development Fund focuses on supporting the long-term development of children from poor families by encouraging children to plan for their future and accumulate intangible assets such as positive attitudes, personal resilience, and social networks. NGOs around the cities have also rolled out programs ranging from afterschool tutorials, study tours, and career planning workshops to mentorship programs, each tackling specific aspects of the personal growth of children.

With that being said, the prospect of breaking through intergenerational poverty isn’t all gloom and doom. To cater to the basic learning needs of students, the government has various types of subsidies to cover their daily expenses. The textbook, transport, and meal assistance scheme ensure students of all economic backgrounds can have an equal chance at education. The Child Development Fund focuses on supporting the long-term development of children from poor families by encouraging children to plan for their future and accumulate intangible assets such as positive attitudes, personal resilience, and social networks. NGOs around the cities have also rolled out programs ranging from afterschool tutorials, study tours, and career planning workshops to mentorship programs, each tackling specific aspects of the personal growth of children.

As for adults who wish to continue their studies but face financial difficulties, they can be supported by the Continuing Education Fund (CEF). The CEF subsidizes adult learners who enroll in reimbursable education and training courses, giving them a second chance to pick up their childhood dream. However, these aids either fail to reach a large group of needy children or cannot keep on providing long-term help to these students. More often than not, once the program has ended, the students are put back to the starting point.

Though the effectiveness of these education programs is still limited, their effort does not go in vain.

These aids can be life-changing for individuals who receive help and inspire them to continue to serve the communities once they have the power. Let’s hope that in the foreseeable future, more resources can be put into eliminating education inequality and every student can be given the opportunity to expand their potential.

Is There Actually Affordable Housing in Hong Kong?

By Samantha Law Housing affordability, which refers to the cost of housing services and shelter relative to a given individual’s or household’s disposable income, has become an emerging issue around the world. It is also inherently a key factor affecting economic stability, which essentially refers to the notion that people have the necessary resources to lead a healthy life.

Hong Kong is the most expensive city in the world for those looking to buy a house. In 2019, the average price of a home in Hong Kong was estimated to be around $1.2 million USD, followed by Singapore and Shanghai with $874,372 USD and $872,555 USD respectively.

The difficulties in purchasing a home in the city are exacerbated by the fact that the median monthly wage in 2021 is estimated at around $18,700 HKD, according to the Census and Statistics Department. Suffice to say, it is evident that Hong Kong has the most expensive housing prices (on average), but why? What is the Hong Kong government doing about this issue? In this article, I will be analysing the Hong Kong housing crisis, followed by an analysis of the public housing scheme – a government policy aiming to help those overwhelmed by such prices.

Firstly, property prices in Hong Kong have taken a toll - both mentally and physically - on some citizens’ mental health. A survey conducted by the Chinese University of Hong Kong Institute of Health Equity found that the heavier the burden of housing prices, the worse the physical and mental health of its citizens The survey questioned 1,978 adults, and calculated the housing affordability based on the respondent’s income after deducting housing costs.

The research team found that respondents with poorer ability to afford housing – which was measured by asking respondents to self-report information on monthly household income and mortgage payments – were more likely to be older, un-married, less educated, less physically active, smokers, and renters of public housing.

Additionally, they tended to have worse mental and physical health. Moreover, almost 37.7% of respondents in the poorest housing affordability quartile were deprived. This is crucial evidence showing the importance of improving housing affordability to ensure economic stability – by improving housing affordability, we can simultaneously improve the mental and physical well-being for the Hong Kong people Secondly, the public housing policy aims to provide sufficient public rental flats to those who cannot afford any other type of housing as well as those in genuine need. Since its establishment in 1973, 26.1% of the population in 2016 were reported to be living in public rental housing. However, there are still many more who live in inadequate housing: approximately 122,000 in 2021, which was a 4.1% increase compared to 2020.

Among the inadequately housed, 73% – approximately 92,200 – are living in subdivided units. Suffice to say, regardless of the public housing policy, many more still have to trudge through their days living in inadequate housing. Therefore, it is crucial that we find ways to provide affordable housing to ensure economic stability, regardless of wealth.

Illustr ation by

Erin C han

One such program, the public housing scheme, has certainly helped tenants save disposable income. In a seminar held by the Hong Kong Jockey Club Centre for Suicide Research and Prevention in the Univeristy of Hong Kong, Dr Yi Zhang presented a positive relationship between public rental housing and household savings. Between the years 2009 and 2010, tenants in public rental housing saved (on average) $70,000 HKD, while private households saved $40,000 HKD. On the other hand, many families have to wait excruciatingly long in order to successfully rent or buy a home in Hong Kong: the average waiting time for subsidised public housing has climbed by 5.8 years, meaning it would take an ordinary family nearly 21 years to buy a home in Hong Kong. There are many reasons in play: scarce land and a supply bottleneck.

According to 2019 data, Hong Kong covers a total of 111,100 hectares (approx. 429 square miles) of land. Of that, the area used for construction and development accounts for 25%, country parks account for 42%, while the area of land used for building houses accounts for only 7%, which has remained stagnant throughout the past 15 years. Hong Kong does have land, but it isn’t much; and 70% of Hong Kong’s land has not yet been developed. Therefore, a social consensus is required in order to utilise said 70% of the land – application for redevelopment takes at least six years, while subsequent construction work takes another four to five years, while simultaneously battered by opposition from the public, ultimately forcing a lengthy judicial review.

Moreover, the land redevelopment program has recently been decelerating (as of 2021), partly due to complicated administrative approval procedures. According to one government official, the redevelopment program to provide housing supply “in the short term to medium term will be difficult” as it may require many discrepancies among other stakeholders (such as neighbouring residents, construction workers, etc.) However, many believe that only the development of new land, through new development areas and land reclamation, can be a permanent solution.

Fortunately, there are solutions to this housing disparity. In the past few years, the Hong Kong government has outlined many solutions to try to tackle the housing and land shortage.

In the 2021 policy address, it laid out the plan to use 350 hectares of land to produce around 330,000 public housing units in the upcoming 10 year period. In addition to this, the Our Hong Kong Foundation (OHKF) has published some suggestions for actions that the government could consider to alleviate delays in housing supply and breakthrough points, including reducing unnecessary vetting and approval procedures (by simplifying procedures, removing barriers and facilitating collaborations between the public and private sectors as well as increasing efficiency within civil servant departments), establishing simple and crossdepartmental targets as well as performance indicators for civil servants, and increasing engagement and trust between government and society by recognizing the necessity to prioritise housing demands and achieving a society-wide consensus.

In summary, I believe that a consensus and a collaboration between administrative and societal communities should be strengthened and further improved. Throughout the tumultuous ups and downs Hong Kong has faced, a bond is required in order to go beyond the status quo and achieve our goals as a society. I hope that you, as a reader, would understand the disparities that exist in our society today – even beyond just the housing crisis. By recognizing and acknowledging the prevalence of these problems and issues, we can take our first step towards solving them.

South Korea: On the Verge of Another Debt Crisis?

By Hana Chow

Illustration by Erin Chan

The recent hit TV show, Squid Game, fascinated watchers with exhilarating plot twists and the thrilling, haunting storyline. The show features a game with individuals in large sums of debt competing to earn a colossal cash prize of 456 million. While this may seem like just another thriller, throughout the show people couldn’t help but notice the countless hidden economic themes that were displayed surrounding economic security that are anything but fictional. A central theme often revisited throughout the show was the crippling debt crisis in South Korea. But what exactly is happening in today’s South Korean society?

Well, statistics show that the situation depicted in Squid Game is extremely real, displaying the serious debt issue in South Korea.

The South Korean debt crisis has been existing for decades with the constant issue of national, corporate and household debt. To provide some historical context, after years of a highly maintained economy, South Korea entered a significant debt crisis in the year of 1997. Mismanagement of funds and failed macroeconomic policy soon led the country to economic turmoil. With assistance from the IMF, South Korea was able to recover from this short-term suffering. However, the crisis did not end there. As the country developed over time, new policies, such as housing policies, started raising income-taxes and the living and housing costs. In fact at around 2017-2020 the housing prices rose to over 30%, which proved to be a large economic burden for citizens living in South Korea. Furthermore, the recent COVID-19 pandemic caused increasingly risky and dangerous political investments after the decrease in small business and employment rates which have only escalated the debt crisis in South Korea.

Along with the increase in household debt, Korean housing prices have been soaring in recent years. This is primarily due to the previous Korean government’s policy to suppress housing demand by putting restrictions to real estate prices. However, with increasing population and growing demand for housing in only certain areas such as the capital, Seoul, the housing prices skyrocketed and the policies failed. This has only contributed to the ever growing household debt and financial crisis individuals are experiencing in South Korea currently.

With the growing household debt crisis in South Korea, the individuals facing the largest effects are young middle-aged adults, of which many experience or have experienced a spiralling economic security. This has been proven through data from the central bank reporting that young individuals around the age of 30 are most in debt with an average of 270% of debt compared to their income.

Additionally, with the dramatic increase in the income gap due to the rise of the COVID-19 pandemic in South Korea, the average household debt to income ratio in South Korea in total has surpassed more than 5% of the country's GDP. The debt crisis has been further exacerbated as COVID-19’s enervative impacts seem to target small businesses, leading to unemployment, and causing an increase in individuals in South Korea receiving loans from multiple high street banks simultaneously causing a turmoil in managing and paying off existing loans. This has caused many to not be able to afford the rising house prices and experience a downfall in their economic security and finances.

As the issue of household debt in South Korea continues to be a threat to the economy, new policies have been implemented to help mitigate this situation. A significant policy that was recently made was a refinancing policy that encourages low-income households and individuals to refinance their debts and mortgages through fixed-rate loans to ease the situation of the accelerating rate of debts. Furthermore, the South Korean government has provided incentives for youth to start saving up and building their financial assets to be financially stable in the future to prevent unpayable debt. Additionally, to prevent the ongoing increase in living costs and housing issues, along with the change of property taxes and regulations, housing policies to reduce the imbalance of supply and demand for the housing in major cities in South Korea should be revamped.

Although the situation of the debt crisis in South Korea has not shown signs of slowing down recently, the relaxation of COVID-19 restrictions and impacts on South Korea’s economy as well as new housing policies and debt related policies might just determine the future of the debt crisis and the longevity of South Korea’s ever changing and developing economy.

Japan's Economic Security Law- A Laudable Policy

By Liz Lee O n May 11, 2022, the Japanese parliament enacted the "Act on

Promotion of Economic Security by Integrated Implementation of Economic Measures”, in hopes of resuscitating the downspiraling economy amid the coronavirus outbreak. The Honourable Akira Amari, a member of the House of Representatives of the National Diet of Japan (bicameral parliament), explained the core components of Japan’s new economic security strategy: 1. To achieve “strategic autonomy” and “strategic indispensability” in global supply chains, 2. To secure and stabilise fundamental infrastructure, 3. To enhance research and development for advanced technologies, 4. To ensure non-disclosure of sensitive technology patents Illustration by Megan Leung

To go into further detail, constructing resilient supply chains of 'critical material', such as semiconductors, is one of the top four Shipping delay is a case in point amid the pandemic priorities of the new legislation. Recent years have witnessed Japanese growing reliance on China's import and export market, situation. By then, it would be difficult for Japan to switch to other alternative sources.Thus, the new especially on devices like smartphones and laptop computers. economic security strategy aims to diversify supply These materials are crucial to the ordinary lives and economic activities of the public. While Japan was appealed to by China’s chain partners across nations. Japan will establish market in its strategic economy, any disruption of exports from reliable supply chains between Japan and trusted stakeholders, who possess the materials and China would likely target consumer spending. manufacturing capability to produce next-generation semiconductors.

The new legislation will alleviate the heavy reliance on China while increasing the world’s dependence on Japan in the supply of critical technologies. Moreover, semiconductors are of significant importance in improving the functionality of society by increasing the ability to extract, accumulate, and analyse data. However, a considerable boost to semiconductor production requires a large amount of investment - the fundamental improvements can only be expected later in 2022 or 2023.

Illustration by Megan Leung

On top of that, the Japanese government will invest significantly in companies and institutions conducting research and development of ‘specified critical technology’. According to Articles 60 to 64, the designated technology is defined as advanced technology that may become critical in the future for the safety of the Japanese public and economic activity. The appointed members of the related companies and institutions are obliged to provide necessary documents, explanations, and opinions on cutting-edge technology and production methods. Under the government's order, the patent applications will be subject to restrictions. For instance, applicants must obtain the Cabinet Office’s permission before working on the inventions. They are also obliged to take necessary and appropriate measures to prevent the leakage of information concerning the inventions. This new act not only enhances the competitiveness of Japan’s research and development (R&D) efforts, it also helps pool in talents and capital in the companies, in hopes of flourishing the technology sector in Japan. In the last ten years, there has not been much breakthrough in the advancement of technology in Japan.

Thus, it is hoped that the development of robust legal protections for patents will allow greater innovation in the development of cutting-edge chip manufacturing techniques, which would keep pace with global digital transformations. The public will be able to reap the benefits from the technology advancement.

Ensuring supply chain reliability aside, the new act also addresses the area of strengthening key infrastructure. According to Articles 49 to 59 of the Act, the government would establish the guidelines that describe the basic policies and criteria for the ‘specified social infrastructure business operators’ to introduce equipment and choose suppliers. The designated companies in the infrastructure sectors will be required to submit installation plans to the government. After the minister receives them, the minister may order the modification or discontinuation of the plan. Anyone who does not comply with the law will be punished by imprisonment for not more than two years, or a fine of not more than JPY one million. Since the degradation of the functions of their “specified critical equipment” would endanger the stable provision of the related services, the new policy impairs national security and public safety. Given the support of the government, a larger number of companies are motivated to expand their production and increase their investment. Thus, the companies earn greater profits and the employees (approximately 68.8% of the private sector labour force) will receive a higher income. This in turn raises the quality of living conditions of the public.

To conclude, the Japanese government’s new guidance, requiring all ministries and agencies to account for economic security in their operations, is a step toward developing a rise in a secure and competitive research environment where innovation for the economy can flourish. This new legislation will take effect over six months to two years and will enhance the country’s national security and guard key technology as well as secure critical supply chains.

Antidotes for a recession: Economic policy in the USA during

By Ethan Choi the Covid-19 pandemic 2020 saw the genesis of an unprecedented economic recession. Inevitable as the recession is (cue the talk about economists predicting recessions), it stemmed widespread discussion over economic policy. Though the employment of monetary and fiscal policy is useful and productive, has there been too much curtailing or insufficient curtailing on economic freedoms? To minimise losses, economists seek ways to reduce the overwhelming impacts that Covid-19 has on the recession curve. This article discusses the ideal requirements for expansionary economic policy to combat the pandemic, and evaluates some empirical examples from the United States.

Traditionally, economic policy is divided into monetary policy and fiscal policy. Monetary policy deals with how the central bank allocates spending and resources, and how it influences money supply. Fiscal policy, on the other hand, deals with government actions pertaining to spending. They both constitute stabilisation policy - policy intended to maintain the money supply through expansionary and contractionary policy, thus balancing out the business cycle.

What does ideal economic policy look like?

Before trying to rekindle businesses, we must turn towards some basic economic principles. Addressing the elephant in the room, we must protect vulnerable individuals. This is done through direct grants and subsidies, stimulus packages, and government hiring to promote equity. It is useful to adopt forbearance. Forbearance allows borrowers to repay loans or payments at a later date - to accommodate for economic hardships and to allow for individuals to pay for more critical expenses.

It is imperative to protect the economy while enduring this recession. From individuals to households to firms to governments, transparent and marked steps must be taken in our economic cushioning.

Though, let’s take off our hindsight glasses and travel back to the early months of 2020. Workers all across the world are experiencing furloughs, unpaid work hours, and layoffs due to the financial and economic burden induced by lockdowns. The moot point turns towards whether to give payments and subsidies to all households, or to target low-income households. The US Federal Reserve adds liquidity to treasury markets, changing reserve requirement ratios to 0% on March 26th, 2020.

Monetary Policy The reserve ratio measures the portion of deposits banks and financial institutions hold as reserves. The purposes of reserve requirements are, evidently, to regulate money supply and to control the liquidity of the money market. In line with the “ample-reserves regime” as outlined by the US Fed in January 2019, the US has developed a system where an ample supply of reserves ensures that it is not necessary to actively manage the supply of reserves. Instead, it is through administered rates that the bulk of monetary policy is handled. Thus, this eliminates the need for depository institutions to maintain accounts at reserve banks. This “abundant reserve” framework ensures that federal reserves are oversupplied. Thus, there is no more need to establish a stable demand for reserves.

The elimination of reserve requirements is an integral move with regards to expansionary monetary policy.

The “ample-reserves regime”, as aforementioned, provides increased economic growth. With reserve requirements being set, banks had to reduce lending and take in fewer deposits. Reserve requirements, for the last few decades, served as a backup source of liquidity. This change is justified, for many of the world’s largest economies (Canada, United Kingdom, Australia, Hong Kong) have abolished reserve requirements in the past few decades.

In conclusion, money that the Federal Reserve System was not providing to households and firms for lending was money wasted. By setting reserve requirements to zero, the Fed could increase the supply of money to independent small business1, and also eliminate the risk of competing banks increasing the liquidity risk.

Fiscal Policy IThe CARES act, budgetary fiscal support, and unemployment insurance benefits form some of the fiscal policies employed by the United States. The CARES act was signed by then-US President Donald Trump on March 27th, 2020.

It is a 2.2 trillion dollar economic stimulus bill, providing $300 billion in one-time cash payments, $260 billion in increased unemployment benefits, $500 billion in loans for corporations, and $339.8 billion to state and local governments, culminating with the Paycheck Protection Program, providing $953 billion for small businesses and The beauty and allure of the CARES act is veiled behind a dreadful organisations. Though do these large list of design flaws. “Industry rescues” - a buzzword thrown around numbers really sum up to a comprehensive economic stimulus? to refer to means of bolstering the economy. Are the wages of lower-class workers prioritised over the overbearing wealth of In conclusion, the United States has taken corporate executives through industry rescues? The CARES act clear steps to manage the issues induced by invariably made a turn towards protecting large businesses instead economic downturns. With regards to fiscal of families in dire need. policy, cash assistance must be provided The CARES, HEROES etc. acts are relief packages, which do not inclusive of all Americans. What have we address economic stimuli - known to bolster economic activity. All learned from Covid-19? The main takeaway these packages - five in total, including the American Rescues Plan going forward, is that we must construct Act of 2021, fall short in their empirical considerations. To illustrate robust economic infrastructure. Using this, 45% of the relief funds of the CARES act went to 4% of the electronic card transfers to conduct these businesses. Additionally, stimuli or relief packages will only be economic stimuli, filling in holes created by given to Americans who fill in tax returns, meaning that those who the various stimuli packages, and directing don’t - including veterans and low-income households, will have to money towards hospital authorities and hightread through muddy waters to do so. Not to mention the 16.7 risk individuals are good places to start. million US residents who do not have a social security number, as well as the 500,000 homeless residents.

The Economic Cost of the Russo-Ukrainian Conflict

By Vanessa Kan It has been 6 months since the day Russia invaded Ukraine, and the war is showing no signs of stopping. An inconceivable amount of damage and suffering has been inflicted on the Ukrainian people. However, perhaps the most far-reaching, longlasting consequence may be the economic impact on not only Ukraine, but other nations through a domino effect, as a result of the globalised economy.

Following the February invasion on multiple fronts, life in Ukraine effectively ground to a halt. During the initial Russian assault, the country’s Black Sea ports were blocked, and with it Ukrainian trade with the outside world. Air raids reduced the country’s infrastructure and even residential areas to rubble, while whole grain fields were torched by advancing soldiers.

All in all, the war so far has caused 108 billion in infrastructure damage. Despite Russia’s retreat from northern Ukraine, the conflict is still raging in the south and the eastern Donbas region. The fighting there resembles one of attrition, and constant, indiscriminate shelling - often using weapons prohibited by the Geneva Convention, such as phosphorus gas - has rendered entire towns practically uninhabitable, adding more to the already burdensome infrastructural and ensuing economic damage to Ukraine.

On top of the damage brought to the infrastructure of Ukraine, the people of Ukraine have also, in many ways, been affected by the war, which has led the sharp drop in production and economic output. Following the breakout of the conflict, Ukrainian men signed up to join the army and territorial defence militias in swathes, while women, children, and others who could fled Ukraine into neighbouring countries such as Poland, Moldova and even Russia - about 11 million refugees in total. Needless to say, such a loss of its workforce deals a huge blow to Ukrainian economic capabilities.

The data, too, reflects the acute financial damage the war has brought to Ukraine. According to the World Bank, Ukraine’s economy is predicted to shrink by 45% by the end of the year, which would be its most severe GDP downturn(1) ever.

This economic situation also means that poverty in Ukraine will be exacerbated. Even before the war, the country had consistently been ranked low in terms of GDP per capita in Europe. Now, according to the World Bank, 70% of Ukrainians face poverty due to the raging war(2), a statistic that is unlikely to ameliorate due to the destruction sustained by Ukraine’s fundamental infrastructure, and the current stalemate that makes the war highly unlikely to end soon.

Ukraine is not the only country that is experiencing economic woes due to the conflict. The country accounts for 10% of global wheat exports (3), with countries such as Pakistan (47.9%) and Egypt (25.6%) heavily relying on imported Ukrainian wheat to feed their people. However, until a month ago, ports in the Black Sea were blockaded by the Russian navy. Since the beginning of the war, the price of wheat has soared to its highest point since 2012, with the countries that rely on Ukrainian wheat facing a sudden shortage of the commodity.

Perhaps the most striking example of this phenomenon is the food crisis in Lebanon. Before the war, the country was neckdeep in a financial crisis due to government mismanagement. With goods already scarce and expensive, the RussoUkrainian conflict only exacerbated the situation. Ukraine accounts for 66% of the wheat that Lebanon imports, and from the past few months the effects of this have been palpable. The cost of bread has risen a staggering 550%(4), and with nearly 80% of people living beneath the poverty line, a price hike for such an indispensable commodity will doubtless put more under economic strain and push the country into further financial ruin.

That said, those on the other side - that is, those who cooperate closely with the Russians - have not fared well economically, either. After Russia started the war on the 24th of February, the West and its allies have been quick to wage an economic one on Russia, aspects of which include freezing its central bank assets and sanctioning Russian firms and individuals. As a result, many corporations, such as Mcdonalds and H&M, have ceased doing business with Russia. Crucially, the country has been cut off from SWIFT (a society which allows for financial institutions and businesses to make transactions and share information) blocking Russia’s access to international finance markets.

Russia’s financial institutions haven’t been the only casualties of Western retaliation. Two other parties are also experiencing repercussions due to this situation. The first are countries which rely on Russian exports: Russia is one of the largest energy exporters, but due to sanctions, crude oil prices have seen a large increase, which in turn has kickstarted a domino effect, increasing the price of fuel, energy, and other related goods and services, affecting multiple industries and greatly disrupting global trade. Therefore, the cost of living in countries which rely on Russian energy, such as Germany, has increased. In some cases, this puts the economic security of citizens in jeopardy.

The second are those who rely on Russian spending and investment.

Russia has long been a close economic partner of countries such as Armenia and Belarus. For countries such as Armenia, where many Russians oligarchs trade, invest and even vacation, their economies are inevitably dependent on Russia. However, due to the aforementioned reasons, Russia’s economy is expected to contract by 11%(5), resulting in reduced investment and spending in these countries, leading to them also being affected economically. In particular, Armenia’s economy is projected to contract by 4% this year due to the war in Ukraine. For countries which are vocal supporters of Russia’s acts, such as Belarus, the outcome for their economies is yet more detrimental. Following the outbreak of the war, during the initial stages of which Belarus served as a launching pad for Russian troops, countries have been quick to sanction Belarussian individuals and banks, leaving them further isolated from global markets.

Belarus’s exports have already dropped 30% in 2022, and its GDP contracted in the first quarter of 2022(6). Evidently, all are not spared from the effects of this war.

As Ex NATO secretary-general George Robertson once said, “Globalisation will make our societies more creative and prosperous but also more vulnerable”. In this new era of economic cooperation and conflict, the globalised world we live in today has contributed to both mutual prosperity and hardship. During times of peace and stability, countries can depend on one another for goods and services - a win-win scenario. Yet, in times of crisis, one hindrance in the intricate web of global trade and commerce creates a ripple effect, causing widespread, unpredictable consequences that transcend borders and industries. Indeed, no matter the scale or magnitude of damage done, those who suffer the most are people who depend entirely on this web for their livelihoods, and who, without it, face poverty and destitution - a situation exemplified by the Russo-Ukrainian war. Therefore, it still remains to be seen whether humanity can surmount the paradox of globalisation, and whether it will help or hinder economic security in these challenging times.

Why the Euro Is Failing

By Vijay Narayanan

Why was the euro created in the first place?

During Europe's recovery from WW2, an important goal for the European Union was to establish an economic & monetary union (EMU). It was planned for the EMU to include coordinating economic and fiscal policies, a single common monetary policy and a currency: the euro.

The euro was created, not for commoners, but for the prosperity of the global trade network and multinational corporations. The euro offered many benefits to the aforementioned parties - easier for companies to continue cross-border trade, a stable economy (only for the richer nations of the EU) and more choice for the consumer.

Unfortunately, weak political commitment, divisions over economic priorities all marred the progress towards the EMU. In 1991, the new Treaty on “European Union” which contained the provisions needed to implement the monetary union was agreed at the European Council. After nearly 10 years of preparation, the euro was launched on January 1st 1999, but only in staggered stages. For the first three years, it served as an ‘invisible’ currency, only used for accounting and electronic payments. On the first day of 2002, coins and banknotes were launched, and in 12 EU countries, the biggest cash changeover in recorded history took place.

The Euro’s tendency to serve richer Eurozone members The euro’s most significant drawback is the rigid monetary policy. This unfairly serves richer countries and continues to exploit poorer nations particularly in the Balkans, which is a major impetus of the Greek debt crisis.

To understand how the Euro’s inflexible monetary policy affects poorer EU members,, we must first explore the theory of monetary policy, and understand why different countries set different interest rates in accordance to their economic status.

Richer countries like France and Germany should have high interest rates to prevent inflation. If interest rates were low, the population would have more spending power as people borrow more money, leading to inflation. If interest rates were high,the population would borrow and spend less money, lowering inflation.

On the other hand, poorer countries, such as Greece and Latvia have to have lower interest rates to stimulate spending.

These countries don’t have to worry about inflation because the unemployment rate would probably be high, so there is space to produce more goods.

This is how different countries increase and decrease their interest rates to manage their own economic stability.

Unfortunately, the same doesn’t work in the eurozone, as all countries use the same currency. This is because the euro defies conventional wisdom and upends traditional monetary theory, which assumes nation states can control their interest rates. Free trade is a very important element of the euro, as it does not deflate the currency of consumer markets.

However, in a situation like this, interest rates cannot be simultaneously raised in richer countries and lowered in poorer countries, thereby reducing the wealth of people in poorer countries.

Without the euro, emerging and underdeveloped countries would have been able to recover from inflation and other economic evils much easier. That being said, let us now look at a case study of the Greek Debt Crisis.

The Greek Debt Crisis When Greece became the 10th member of the EU on January 1st, 1981, the country and its finances were in good shape. By 1999, the country had a debt-to-GDP ratio of 60%, not fantastic, but not horrible either. 2 years later, the country joined the eurozone and adopted the common euro currency.

It is important to note that the euro did not completely influence the debt crisis. In the 1980s, the Greek government pursued expansionary economic policies. Unfortunately, this backfired completely, as the country suffered soaring inflation rates, high fiscal and trade deficits, low growth rates and exchange rate crises.

An environment like this prompted the Government to join the EMU, believing that the monetary union backed by the European Central Bank (EBC) would lower inflation and interest rates, increase private investment and economic growth. Furthermore, the single currency would allow for easier trade with the global and European economies and eliminate many transaction costs.

As Greece explored its new eurozone membership, it found that this helped the nation to borrow at cheaper rates and finance government operations in absence of sufficient tax revenues. However, the single currency exacerbated the country’s fiscal problems. The euro also indicated the substantial differences in economic structures between Greece and other member states, notably Germany. Compared to Germany, the Greek productivity rate was much lower, making the state’s goods and services far less competitive.

The adoption of the euro only highlighted the competitiveness gap, as it made German goods and services cheaper than in Greece. Having accepted the eurozone monetary policy, Greece could no longer devalue its currency, worsening its trade balance and increasing the current account deficit. In the case of the euro, countries cannot devalue, increase printing, or default. And so, they resort to the last method, which is economic austerity, raising taxes, and decreasing pensions.

Austerity hurts the public and the economy, even worse than inflation. This led to shortage of medical supplies, massive layoffs in Greek companies and more. Austerity measures also hit Greece particularly hard during the coronavirus pandemic, as hospitals and medical facilities faced a shortage of test kits, vaccines and beds.

How can the euro improve?

The euro is great in simplifying trade with the global community, supporting cross-border investments with the eurozone and mutual support between nations in times of crisis.

However, examples like Greece and the 2007 financial crisis truly show us the major flaws behind the system and why it will ultimately fail. The rigid monetary policy and bias towards richer countries pulls down the euro and fails to benefit the common man.

In order to improve the euro, there needs to be greater fiscal and financial integration with the euro area to match the degree of monetary integration. Additionally, there needs to be a single central fiscal authority with its own source of revenues, the ability to issue debt and to make fiscal transfers with the eurozone. This sets the overall fiscal stance for the eurozone and central debt would be joint liabilities. Finally, there needs to be a proper rulebook to resolve failing institutions and guaranteeing deposits. This better helps nations like Greece and Portugal to restart their economies.

Rising Wage Benchmarks for Home Health Workers By Josephine Wong The influence of low-wage benchmarks raises many difficulties for home health workers to support a basic standard of living and achieve economic stability of care. The roles that home health workers play in society are extremely important, for they assist older adults and people with disabilities in their homes and communities who require constant healthcare services. This article discusses the central role that home health workers provide for our community, and how setting higher wage benchmarks and establishing state policies can help boost workers’ economic security and compensate for their vital performance in the home health industry.

In the US, home health workers have long been receiving low wages who typically make less than $12 USD per hour in the lowest paying states, and generally below $18 USD per hour in the highest-paying states. With how the COVID-19 outbreak heavily influenced the routine and daily operations of healthcare facilities, millions of American policymakers have proposed to divert more government support for home health workers since the employment rate has vastly decreased. “In the past decade, we’ve seen wages adjusted for inflation kick up a little bit,” said McCall. “But those wage increases really haven’t translated into widespread economic stability for these workers. This is particularly troubling given everything that they’ve faced during the COVID-19 pandemic, where they were literally laying their lives on the line … and are still providing critical services to older adults and people with disabilities”. Home health workers work around the clock to look after the elderly and individuals dependent on in-home supportive services, but their efforts go vastly unnoticed in our economy. In addition to performing their regular duties, home health workers are also assigned to assist in distributing infection control supplies, food, and medications beyond their usual workload.

I Low-paid home health workers, especially individuals who are sole caretakers, are more prone to experience financial, physical and emotional strain than those who have additional care for ageing adults. This is evidenced in the Senior Living 2021 Annual Report, which surveyed that 33% of American sole caretakers suffer from financial strain and 46% of them experience emotional stress. Here, it clearly indicates the catastrophic effects of low-income home health workers living in household crowding conditions with their families, and less likely to have a regular source of health care as well. The worker economy security situation in the home health workforce is declining exponentially.

State median wages for home health workers ranged from $8.76 to $17.45 per hour with a national median of $14.15 as of 2021, which is significantly less than the national median wage of $22.00. Their annual salary is only around $23,000 despite working exceedingly long hours every week. Many workers have extremely low wages with 1 in 6 home care workers living below the poverty line, where many of them have no choice but to turn to the government for aid due to the government policy set wage being so low despite their essential role in the healthcare industry, which in turn implies that the government will have less incentive to adopt good policies in the home health sector. The underlying reason why home health workers are so severely underpaid is because of the lack of labour protection available, as well as how we often undermine their workforce value in our society and economy. Another contributing factor is the systemic oppression of home care workers who are marginalised based on their gender and race. This is critical in understanding the devaluation of workers in this occupation and the low wages that they are paid.

As the home health workforce is largely composed of women –– 88.6% out of all workers, many of them are immigrants and women of colour. Asian, Latino and Black women represent 60% of the home health worker sector, and these women caregivers usually have to bear the brunt of unpaid family care. Home health economic security can be enhanced through several methods. First, delivering significant cost savings. Given that there is a significant staff shortage for home health workers, 1 million additional home health care workers are needed by 2029. Alternatively, higher wages would reduce short staffing in the healthcare workforce.

Individuals who provide higher income tax given that they receive higher wages will increase in savings across government programs –– leading to $556 million worth of savings in Medicaid and $1.6 billion savings across benefit programs and tax credits.

These cost savings entails the significant benefits that it could bring in the home health industry; not only can it provide more resources for patients, but also reduce the workload for home health workers given the amount of stress they are under. Secondly, enacting effective and lasting state policies, as it has a powerful impact by reimbursing services that create higher wages for home health workers. For instance, the Washington state Medicaid agency came to terms with worker unions of increasing worker wages. The economic policy institute has proposed wages that suit a more adequate level of living for each state in the US, which ranges from a minimum of $19.58 per hour in West Virginia to a maximum of $33.87 per hour in Washington. Although right now there are no states where home health workers meet this proposal due to the underlying reasons of it being an overlooked labour force, it serves as an accurate representation of the value of home health care workers, which can ultimately provide economic stability for the workforce that will certainly flourish in the future, allowing more workers to enter this profession in a state of greater economic growth.

Although more home health/personal care aide openings are predicted to grow by the end of the decade, there are some states that still significantly need more staffing increases. There is an inextricable link between the financial impact of economic instability on home health workers and their hurdles they face on a daily basis. By implementing nationwide government policies to set higher wage benchmarks for the workforce, as well as strengthening state Medicaid programs around home and community-based services (HCBS), home health workers can hugely benefit from this investment in home health care work and be able to enjoy an adequate wage that will thrive the economy.

How the “Digital Divide” is Exacerbating the Wealth Gap, and What We Can Do About It

By Kayla chan

Illustration by Ariel Suen

Poverty Porn The Unethical Way to “Save” the Poor

by poko lam Emaciated children with flies buzzing around reach their hands out to you, their bodies covered with filth and their surroundings almost inhospitable, their protruding ribcages looking like they would burst out of their bodies any second. Have you ever seen disturbing images like these? This is, in fact, a common advertising strategy used by charity organisations - poverty porn.

Illustration by Ariel Suen

Poverty porn is widely defined as “any type of media, be it written, photographed or filmed, which exploits the poor's condition in order to generate the necessary sympathy for selling newspapers, increasing charitable donations, or support for a given cause", as proposed by journalist Matt Collins in 2009.

So, what does poverty porn do? As a matter of fact, poverty porn actually does help in increasing awareness and donations towards the poor and their problems. By using hard-hitting and troubling images, charities make use of the empathetic nature of humans to induce them to donate money. This concept was first introduced in the 1980s and quickly became a trend within charity campaigns, some of these campaigns were very successful in raising money by using poverty porn. But, believe it or not, despite raising money for the poor, poverty porn actually harms people who are in poverty.

Poverty is misrepresented in poverty porn. Contrary to popular belief, poverty is much more than just a simple economic issue; social, political and cultural factors all contribute to shaping this undesirable situation. By portraying the problems of the poor as simply just suffering, such as homelessness, starvation and inadequate healthcare, poverty porn is actually leading the general public into thinking that people in poverty only lack materialistic resources, creating stereotypes and changing how the general public perceives the hardships of poverty in this process.

Because of this, poverty porn is also a form of manipulation and deception toward donors. The only reason why poverty porn works is that it successfully makes people feel bad for those featured in the photos, in order to achieve this, poverty porn only showcases the most extreme cases of suffering. By doing so, charity organisations are trying to incentivise people to give them money without showing them the full picture - the suffering side of poverty, donors can only see the materialistic side of the problem but not the social, political or cultural issues which cause the problem. One of the largest problems in using poverty porn to attract donations is that it has the wrong focus: Poverty porn focuses on manipulating people’s feelings so they would feel bad for the poor instead of actually giving them a reason to donate. As a result, people are manipulated or deceived into donating with a lack of information which leads to a misunderstanding of the big picture. In short, the audience is not given any depth of the given problem but is manipulated or deceived into giving money.

As a result of manipulating and deceiving donors, the donors’ perception of poverty will only stagnate into the stereotypical mindset of poverty equals suffering, and the only way to help them is by donating money.

However what this perception neglects is the fact that people in poverty face much more problems than suffering, such as the lack of means to sustain themselves financially, lack of education to let them acquire the skills they need to make a living and the increasing financial demands as inflation continues, as mentioned, many factors intertwine and shape this problem of poverty, with donors overlooking all these different factors of poverty, a substantial change can never be made and poverty will never be truly eradicated.

Although poverty porn in itself is just a simple image, text or film, but in order to maximise its effects and achieve its goals of making people sympathise with the poor, charity organisations often use the most extreme cases of poverty to advertise their campaigns, in order to do so, some photographers may actually try to “stage” a dismal photoshoot.

In 2018, award-winning photographer Alessio Mamo took pictures of poor Indian children posing in front of a table of fake food to illustrate the problem of starvation, these photos were even featured on the social media accounts of World Press Photo, home to one of the world’s leading news photography prizes. In this photoshoot, Mamo exploited poor people by using them as “props” in order to show people the sufferings of poor people.

Much like Mamo, many photographers, especially western photographers have staged poverty porn by exploiting the poor.

Imagine that you are in poverty, going through the most vulnerable moments of your life, out of nowhere, a bunch of photographers show up and ask you to participate in a photoshoot, what can you do? You can’t say no to them, they are essentially your patrons and your financial situation entirely depends on them, and thus, you cannot risk angering them. So you are basically forced to take part in these photoshoots that only project the fake stereotypes of poverty onto you instead of documenting what you actually go through every day, how would you feel? Photographers and charity organisations are able to exploit their advantageous position to force people into participating in shots which perpetuate stereotypes, this is extremely disrespectful to poor people and takes away their dignity, and thus is a form of dehumanisation.

Even if the photoshoots are not staged, poverty porn is still very problematic. International development expert Jørgen Lissner explains in his article “Merchants of Misery”, “The public display of an African child with a bloated kwashiorkor-ridden stomach in advertisements is pornographic because it exposes something in human life that is as delicate and deeply personal as sexuality, that is, suffering. It puts people’s bodies, their misery, their grief and their fear on display with all the details and all the indiscretion that a telescopic lens will allow.” Not only that people’s most painful and vulnerable moments are exposed to the world without their explicit consent, but poverty porn also drives actual human suffering into simple promotional material that is used for an unjust cause, perpetuating stereotypes. At the end of the day, poverty porn only works because viewers are overloaded with images of human suffering to stimulate pity, inevitably reducing such suffering into another object for consumption just because it can produce particular feelings.

There are a few alternatives to poverty porn that charity campaigns may use to address poverty issues correctly, introduce people to the roots of such issues, and inspire people to try and help make a change.

Firstly, instead of using graphic imagery, charities may focus on telling the story of individuals to identify factors contributing to poverty. By telling stories, not only do those in poverty have a platform to voice out about what they are actually going through and what they really need to change the situation but viewers are also provided with a more all-rounded explanation of the situation, giving them an actual reason to donate money instead of manipulating or deceiving them into donating. Charities may still use imagery to support story-telling, however, it is important to keep the nature of the photos in check such that these images will not serve as a tool to deceive and manipulate donors or perpetuate stereotypes, but instead raise healthy awareness for the poor to create advocacy and make a change for the better.

Secondly, charities may use simple statistics or graphs to replace exploitative images. By using numbers, charities are able to address the issue directly, represent the situation in a simple and easy-to-understand way, and donors will also be much more informed.

Thirdly, charities may shift their focus and change their methods of helping those in need. As the saying goes, “If you give a man a fish, he eats for a day; If you teach a man to fish, he eats for a lifetime”, in order to truly help poor people in need, charities may focus on trying to help people in need by making actual changes in society instead of simply providing financial support such that all the factors which are contributing to poverty are alleviated or even resolved, and by doing so, helping people sustain themselves and improve their lives forever. Here are a few examples of such: Innovations for Poverty Actions is a nonprofit which aims to build a world with less poverty by creating and sharing data and equipping decision-makers to use these data to come up with solutions to reduce poverty. The nonprofit even engages with policymakers in order to come up with the most effective solutions that can alleviate or even eradicate poverty, it has helped with policy-making in countries such as Philippines, Mexico and Kenya. To date, the nonprofit has evaluated and pitched more than 550 solutions, with over 200 in the pipeline, it has informed hundreds of successful programmes that impact millions of individuals worldwide, truly making a change in society and substantially helping those in need.

Oxfam International is another nonprofit which helps those in poverty. This organisation focuses on providing those in poverty a sustainable way to gain the upward mobility in the social pyramid by means such as providing education and resources. Oxfam also tackles policy problems such as debt traps and unfair distribution of foreign aid. This nonprofit has helped people develop ways to sustain themselves and escape poverty, successfully alleviating the problem of poverty.

Outreach International focuses on helping communities to fight poverty instead of making them rely on donations. Outreach International operates on a system named “Participatory Human Development Process”, this is a nine-step process which includes members of the community in a solution-making process, this enables the solution to address issues that the community faces directly and thus provide more constructive and practical solutions, communities are brought together within this process and are given the right education and tools that enable the entire community to rise above poverty.

These nonprofits are all willing to help make changes in society and by doing so, improving and changing people’s lives essentially. If anything would eradicate global poverty, it is more initiatives like these that are willing to make changes and focus on the long term solutions, instead of initiatives that simply donate money and just focus on the short term solutions.

Poverty porn is indeed successful in raising money for the poor, but have charities ever considered the feelings of those who are quite literally forced to take part in this kind of immoral, manipulative and deceiving photoshoots that exploits their suffering, mispackages and misportrays what they go through every day, and dehumanises them by taking away their dignity in exchange for donations? Have we ever tried to understand what people in poverty have actually gone through and what they actually need? Has society ever reflected on the stereotypical perception of poverty whilst “saving” those in it?

Charities should and must stop the use of poverty porn in order to effectively, successfully, and substantially end the general misconceptions of poverty, deepen the general public’s knowledge on the topic of poverty, and alleviate the problem of poverty.

Instead of “saving” the poor and making them rely on donations to survive, practical solutions to solve the root cause of poverty, alleviate the poor’s suffering, and provide them with means to sustain themselves must be implemented to truly help the people in need.

by Abhay Venkitaraman Alaska: it’s a frigid expanse, peppered with a plethora of wildlife, barren tundra, and glaciers. What most people wouldn’t associate with it – however – is a revolutionary idea that has the potential to radically transform our way of life: universal basic income.

Replete with oil and gas reserves, Alaska’s government places 25% of its annual fossil fuel revenues into a ‘Permanent Fund’. The money is then invested in a variety of assets, with the returns on these investments funding an annual dividend that almost each and every Alaskan receives – irrespective of their income.

Alaska’s UBI policy is a shining beacon of hope. An idea that has been argued for by luminaries ranging from American economist Milton Friedman to philosopher Bertrand Russell, it has recently increased in prominence within the public sphere. And for good reason too – in a world that is all too often fraught with burgeoning inequality, economic insecurity, and welfare systems that trap the people they purport to help, UBI would represent a giant leap towards a fairer, more prosperous society.

A UBI would provide an additional source of income to individuals and families, providing them greater security against financial difficulty and poverty, and providing them added freedom to engage in endeavours that they otherwise may have been dissuaded from by the cost. With demographic groups such as the elderly, children, and disabled especially prone to poverty, a universal basic income would allow money to be efficiently-transferred to impoverished households, relieving stress and providing them the ability to meet their basic needs. It would also lessen the burden on those employed in insecure workarrangements such as casual workers, who do not have a set number of minimum working hours, and whose earnings are thus volatile and unpredictable.

This newfound economic security would have a secondary effect: increasing the bargaining power of workers. In an era where the share of income reaped by labour has consistently declined, policies that would empower workers to bargain for a larger slice of the economic pie are more necessary than ever. Right now, workers are often stuck between a rock and a hard place, having to make an agonising choice between exploitative work on one hand, and abject poverty on the other. By providing people income security even in the event of unemployment, UBI would allow employees to turn down substandard jobs, providing them breathing room to scout for employment opportunities that offer upgraded pay and improved working conditions. This could go a long way towards bolstering wages, crushing corporate greed, and evening the balance of power between capital and labour.

Some worry that this income security will reduce work incentives, diminishing employment and output.

However, the bulk of the empirical literature suggests that this is not something to worry about. A review of basic income trials in the OECD noted that the policy had a “weak” impact on employment outcomes.

Similarly, a study of the UBI programme in Alaska suggested that it had no significant impacts on full-time employment. There are important caveats, however. In the case of the basic income trials, participants were acutely aware that the payments were temporary, and it’s certainly possible that work incentives could be significantly diminished if they were made permanent. Moreover Alaska’s UBI programme only pays out roughly one-thousand to two-thousand US dollars annually: substantial, but hardly enough to make ends meet on its own. Therefore if a UBI were set at a livable level, it’s certainly possible that its effect on employment would be more robust.

However, it seems plausible that opposition to UBI on the grounds that it would diminish employment reflects a fundamental misunderstanding of human nature. If people sought out work solely for the purpose of earning money, then this would be a more legitimate critique. Ultimately though, this just isn’t the case. Work isn’t just a source of income; it’s a source of dignity and purpose, and an act that increases the prestige of those that engage in it. It’s no coincidence that longterm unemployment has been shown to diminish the self-esteem of those that fall victim to it. Therefore, it’s reasonable to assume that most employees are likely to pursue work even if a universal basic income were to meet their most basic needs.

There’s even the possibility that a UBI would increase work incentives if it were to replace means-tested benefits. Means-tested benefits are only available to those who earn an income below a certain threshold; as such they are typically only accessible to poor and lower middle-income households. With means-tests in place, benefit payments “phase out”, meaning that after a certain level of income is reached, benefit payments taper off the more money households earn. With many means-tested programmes, this is taken to the extreme; for example many claimants of ‘Universal Credit’, a means-tested welfare payment in the United Kingdom, see 55% of every additional pound of income they earn snatched away from them by the state. These phaseouts act similarly to taxes, diminishing the incentive to work, save, and invest. Infamously, they often create “welfare traps”: situations where it pays more to remain on benefits than it does to work.

With a UBI in place, each and every person would receive the same amount of money from the state, regardless of whether they are a billionaire or an impoverished worker. Some might object that this is unfair; after all, why provide handouts to the affluent when they don’t actually need the money?

One good reason for this is that with universal programmes like a UBI in place, benefits don’t phase out, thus avoiding the poverty traps and work disincentives that plague means-tested benefits. As compared to means-tested benefits – therefore – a UBI would do vastly more to reward individual initiative and thrift; rather than punishing working families for earning more, a UBI would let these households keep more of their hard-earned money.

Not only do means-tested benefits discourage work, but they are also difficult to administer, as the process of targeting benefits payments at those who are eligible is a deeply arduous and expensive endeavour. They also impose complex paperwork on claimants, making it harder for impoverished families that desperately need state assistance to claim welfare payments. In contrast, a UBI is simple to implement and doesn’t force a colossal administrative burden on those that claim it, increasing takeup rates and easing people’s lives.

By providing households cash with no strings attached, a UBI would also do away with onerous eligibility restrictions that demean welfare recipients and constrain individual liberty.

In our present paradigm, welfare payments are often made conditional on claimants meeting specific conditions; often they must be actively seeking work to receive state aid, and claimants are sometimes disallowed from purchasing particular products; claimants of the United States’ ‘Supplemental Nutrition Assistance Program (SNAP)’ – colloquially known as “food stamps” – must face up to an assortment of peculiar restrictions on what foodstuffs they can buy, such as a ban on the obtainment of food that is hot at the point of sale. Not only do these restrictions prevent individuals from exercising their right to choice, but they are fundamentally degrading, treating grown adults like children and revealing a fundamental disregard for the agency of claimants.

Whilst a UBI would certainly present a step in the right direction, it certainly wouldn’t be enough in itself. It would do nothing to relieve market failures in areas such as the healthcare industry, nor would it relieve supply constraints that are commonplace across the developed world, particularly in relation to housing. Nonetheless, in many respects it reigns supreme over welfare models that are currently predominant, and therefore ought to be heavily considered by governments and policymakers.

BUILT BY DARK

by Durva Kamdar

ISSIA 4th

HK edition

Copyright © 2022 Inter-school Social Issues Association Hong Kong

All rights reserved. No part of this publication may be reuploaded, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording, or otherwise, without the prior written consent of creators. website: issiahk.org magazine website: http://issiamagazine.com/ instagram: @issia.hk facebook: issiaofficial linkedin: linkedin.com/company/issiahk contact: info@issiahk.org Please note the views and opinions expressed in the ISSIA Magazine are those of the authors and do not reflect the official position of ISSIA HK or any of the schools they belong to.