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What would happen if ...
WE PROVIDED EQUAL OPPORTUNITY?

The rebuild of our country and economy now awaits. It provides an opportune time to examine our main structural issues and use the opportunity to establish a secure, productive, cohesive nation that works (in all senses of the word), is housed, is fed, and seeks to assume personal responsibility where appropriate.

Today, a restructure suggestion that I have long favoured that would simultaneously address some major structural issues in our society whilst also establishing an equity of opportunity and subsidy for all in our nation.

There is little doubt that our current system:

  1. Produces insufficient entrepreneurs and business creators:
  2. We do not promote the wealth creators in New Zealand. In fact we denigrate their effort and assumption of risk as if it were a slight on our secured apathy. Should they dare to achieve success, it is a challenge to our perceived 'egalitarianism' and treated with contempt.

    I would suggest a poll of final year students at high school asking 'what do you want to be?' would return a plethora of wanna-be 'All Blacks', 'politicians', 'social workers' and 'beneficiary mothers', but absolutely no one anticipating establishing a business which will ultimately employ others.

    I would suggest that you could even retrospectively enquire of our extreme lotto winners on how they used their fortuitous millions - any business started? any Kiwis employed? any investment into the productive economy? I would posit the dominant response would be  "You've got to be joking! Why would I choose that life of pain for nothing! I just spent and consumed and had a great old time!"

    ... And yet we rely on the wealth generators ...
    ... And yet we rely on the employers ...

    So how has NZ got it so wrong that people do not want to start business and employ others? It is after all, the very characteristic that has driven all the historical progressive improvement of living standards, as we currently witness with the sudden release of economic suppression in modern Asia.

  3. Produces insufficient skilled tradespeople and technicians to build our society:
  4. We do not promote those that construct and maintain the fabric of our society - build the houses, install the plumbing and wiring, nurse the ill, farm the land ... We produce too few, and our ability to meet the demands of our evolving society is failing as a result, as is amply demonstrated by our failure to provide and maintain the required housing stock.

    ... And yet we rely on the makers ...
    ... And yet we rely on the builders ...

    Our societal mechanisms for both attracting people into these occupations, supporting their training, and retaining them in New Zealand is woeful, and we futilely attempt to cover own failings by attempting to entice others from overseas. So how has NZ got it so wrong that people do not want to be tradespeople and technicians?

  5. Allows too many to enter the expensive tertiary education sector without purpose, analysis or investment:
  6. While the numbers attending university has ballooned since the 1970s (along with the associated costs of providing tuition and infrastructure), we still produce a shortage of those following disciplines and careers of demand, and are promoting poorly evaluated and heavily-indebting 'educations of fancy'. Headlines such as 'one in three university students do not complete a degree' (Stuff, October 2018) speak to this folly, as does the $16 billion dollars of student debt accumulated, with $1.5 billion currently in default.

    The current context not only cripples those that pursue this post-secondary avenue with indebtedness, but simultaneously, paradoxically, and inequitably, still demands massive state subsidy toward the costs of providing this tuition and infrastructure.

    ... And yet this largesse from the state is simply not provided
    to others who do not follow this direction. Why not? ..

SO WHAT WOULD HAPPEN IF ...

WE PROVIDED THE SAME SUBSIDY TO ALL THOSE SEEKING TO BECOME PRODUCTIVE AND CONTRIBUTING MEMBERS OF OUR SOCIETY, REGARDLESS OF AVENUE CHOSEN AFTER HIGH SCHOOL?

Not being an investigative journalist in possession of the specific figures, I must assume an arbitrary figure of the current subsidy, provided by the citizens of New Zealand (via state funding), for a typical university student. For illustration purposes, let's say NZD50K, spread over five years. Now let's make that equivalent subsidy available to ALL, as citizens of New Zealand, to move them from being their secondary school training into the realm of productive citizens:

  1. For those that wish to pursue traditional tertiary institution trained futures:
  2. For those that wish to continue into established university futures, the equivalent subsidy would remain, guaranteed regardless of age at uptake, for their tertiary training. After that subsidy is exhausted, the full cost of the training would fall on the individual gaining the benefit (logically in their improved career prospects and income) of that training. There would be great incentive to choose courses / invest wisely, and delay utilising this subsidy until the suitability and benefit of the course has been evaluated and confirmed (e.g. by delaying till after some relevant work / maturing travel experience etc.)

  3. For those that wish to pursue trades and technically trained futures:
  4. For those that wish to pursue trade or technical training, the equivalent subsidy would be available, guaranteed regardless of age at uptake. I am not familiar with the particulars of how such trade and technical training is now provided in NZ, but the subsidy may be channelled through appropriate support for course fees, apprentice salary top-ups, or lump sums for meeting qualification criteria etc. The appropriate methodology may take more detailed knowledge, but it should promote the training and careers, but limit the possibility of abuse.

  5. For those that wish to pursue entrepreneurial futures and establish businesses:
  6. Assuming the individual has not previously received the advantage of one of the other mechanisms, but wishes to establish a business, the equivalent subsidy would be paid as a venture capital grant to assist the business through its vulnerable establishment period.

  7. For those that wish to be simple workers and assume the personal responsibility of citizenship:
  8. Assuming the individual has not previously received the advantage of one of the other mechanisms, at age 50 the subsidy would be made available exclusively for the purchase of owner-occupied property (either a first purchase, or against an existing mortgage). This not only serves to maintain an equity of state support to all citizens, it recognises the tremendous advantage to both the state and the individual in having them as owner-occupier, rather than renters, in retirement.

  • EQUITY OF SUPPORT FOR ALL ...
  • MORE TRADESPEOPLE AND TECHNICIANS
  • MORE ENTREPRENEURS ESTABLISHING BUSINESS AND CREATING EMPLOYMENT FOR OUR SOCIETY
  • MORE SELF-SUFFICIENT, HOME-OWNING RETIREES ...
  • WITH LESS FRIVOLOUS WASTE OF OUR TERTIARY EDUCATION RESOURCES

June 2020
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