Road to 5**：Consumption Voucher Scheme
【明報專訊】News summary
The first HK$2,000 installment of the electronic consumption voucher scheme was issued on August 1, giving a fillip to local consumption sentiments. Merchants that supply daily necessities were the first to benefit from the scheme. YATA Department Store said that in the first two weeks of August after the issuance of consumer vouchers, the group's department store sales recorded a double-digit year-on-year increase.
However, the person in charge of a computer specialty store said that the consumer vouchers had distorted the market, causing consumers to lose the desire to spend money again after using the first $2,000 consumer voucher. People in the laptop computer industry also said that business was better than expected in this year's computer festival, but overall, it was difficult for business to return to past levels.
Gilly Wong, the Chief Executive of the Hong Kong Consumer Council, said that there was a lot of confusion in the discounts offered by merchants. Many merchants were unable to provide detailed terms when the Consumer Council called or inquired about discounts online as a customer.
Source: Ming Pao
●Mock examination question
''The government's introduction of the electronic consumption voucher scheme is the most effective way to revitalize the economy.'' To what extent do you agree?
Suggested answers
◆Agree to a large extent:
·Targeting the local consumption market
By issuing consumer vouchers, the government can revitalize the economy in a short-term and targeted manner. In contrast, if the government issues cash handouts to all citizens, it will not be able to limit the ways the cash are used by citizens. Some might simply save it in the bank. In other words, it cannot be ensured that the government's subsidies can be used to stimulate the local consumption markets directly.
·Something new with greater flexibility
The electronic consumption vouchers issued by the government can be used to buy daily necessities and food. It is also possible to implement the scheme cost-effectively and with fewer constraints. With past experience in issuing cash handouts, the government can give impetus to the economy rapidly without amending the law. In contrast, other one-off measures such as electricity charge subsidies and rate reductions have all been tried previously. As society has got accustomed to such measures, their effectiveness in stimulating the economy will be relatively limited.
◆Agree to a small extent:
·Controversies over fairness
In spite of the growing popularity of electronic payment, many elderly people may not have smartphones or do not know how to make electronic payments. Some small and medium-sized enterprises also believe that the stimulus of electronic consumption vouchers on the consumer market will only benefit large enterprises. In contrast, past experience shows that cash handouts can stimulate the economy more broadly and more fairly.
·Low sustainability
From the perspective of sustainability, the issuance of consumer vouchers is a one-off relief measure. Although it has the effect of boosting the economy, its sustainability is questionable, and it is not the best way to revitalize the economy in the long run. More long-term plans will be more effective in boosting the economy. If, for example, the government can actively help the tourism industry to develop local tourism business, it will be more conducive to economic revitalization.
[通通識 第729期]
