Note: This column represents the opinions
of the writer and as such, is not purported as fact
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We're a nation of borrowers and spenders, not a nation of savers -- and that's
about to become a really big problem.
NZ's export performance has fallen dramatically in recent times and if you
compare us to the rest of the OECD nations, we're starting to look a bit like
a banana republic in respect to the percentage of our GDP that results from
export earnings.
Some will stand up and say "I told you so, it's all because we don't have
affordable broadband" -- to which I say "phooee".
Yes, fast, cheap broadband is a great asset to a geographically remote
country like NZ in this 21st century knowledge-based economy, but it's
not the only factor.
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I'm thinking that, as a nation and an economy, we've just been drifting
for the past ten years or so.
Could it be that now is the time for NZ to take some bold steps designed
to turn this ship around and make some headway against the currents of
global recession?
So what can we do to hike our performance?
Well how about we kick the lily-livered liberals out of our education
system and get back to some key basics?
Forget all this namby-pamby, feel-good, can't fail (can only fail to achieve)
NCEA rubbish and the strong focus on arts and culture. Let's get back to
imparting good standards of literacy and numeracy to our kids.
And let's report results using metrics that we can all understand: pass/fail,
a percentage or A-F. This isn't rocket science is it?
Let's teach them that it's important to take responsibility for yourself,
your actions and your future -- rather than relying abdicating such things
to the government in return for paying higher taxes to nanny state.
And let's encourage saving by totally nixing personal income tax and, instead
of penalising people for earning more, focus instead on taxing consumption by
hiking GST. This would certainly change the current "borrow and spend"
Kiwi mindset in a very positive way. Those who spend the most will pay the
most tax -- a very fair and equitable system that would also close a myriad
of tax loopholes such as off-shore havens and shonky income-hiding schemes.
Finally, we ought to promote a culture of entrepreneurship and risk-taking.
We have at least two million work-capable people here in NZ and I would wager
that less than 1% are working to their true potential.
If we could convince just 10% of that 2 million people to get involved in
some form of productive part-time self-employment in addition to their regular
day-job, and if just 10% of those were online or knowledge-based businesses
that earned export dollars...
Well 20,000 folks who earned even $10,000 a year in export receipts through
knowledge-based cottage industries would contribute a very significant $200
million towards closing our trade deficit. And $10K per year is not a lot
to earn from such a venture -- just US$130 per week at today's rate of
exchange.
But where would folks get the time for such ventures?
Well let's replace all that "reality TV" crap with programmes that educate
and incentivise folks to get off their soft comfy sofas and take responsibility
for themselves and their lives. Let's create a few good TV series that
showcase the success stories of other folks who have done just that.
I swear that every time I walk past the TV set these days it's showing someone
eating bugs, renovating a house, wife-swapping, job-swapping, living on an
island with celebrities or ripping someone's garden out. Enough of this drivel,
let's replace it with some *productive* programming.
But these are just my thoughts, what would *you* do to fix up our awful
savings record, our ballooning trade deficit, our falling export performance
and our other woes?
Tell us all and see what others have to say in
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