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If China gives cash handouts to low-paid graduates, would they spend it?


It’s a debate as old as stimulus handouts themselves – will recipients spend the money or save it for a rainy day? But the question carries extra weight in a country where the unemployment rate among young people is roughly one out of six, resulting in a relatively large segment of the population contributing very little to consumption.

Some Chinese economists contend that issuing cash allowances to recent university and vocational school graduates would be an effective means of getting young people to spend in an economically difficult post-Covid environment.

But not all experts are on the same page, and some say that the money could simply go unused for years, hoarded away in a bank account to guard against future risks.

Read More at https://www.scmp.com/economy/china-economy/article/3210628/if-china-gives-cash-handouts-low-paid-graduates-would-they-spend-it

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