Problem 2: rising unemployment
As well as involving current tertiary students, the scheme could include recent graduates who are unable to find work. Ideally, the knowledge and skills they possess would be matched up with those demanded by charitable organisations. Students could then reduce their debt, while simultaneously acquiring practical experience to complement their theoretical education. Through skill retention, long-term unemployment would be reduced. Even demand and supply of skills could not always be aligned, the scheme would still be better than the status quo, where many students will find themselves without work and therefore not contributing to the economy.
Problem 3: lagging economy
The debt-offset (or any other financial benefits) should not be negligible, but should be less than the market wage for corresponding work. This financial incentive would increase the net benefit of community involvement, while the wage differential would mean that those able to get a traditional job would do so. Overall, the cost to the Government in reduced debt repayment would be less that the value of community work undertaken. Even more so, because one-fifth of the debt that is offset was never likely to be repaid anyway due to debt default. In this way the scheme is a worthwhile investment and an important economic stimulus through work creation.
One counter-argument is that reducing HECS is neither a short-term stimulus, nor does it provide short-term financial relief. True. But debt reduction is just one way to encourage community participation. Textbook or transport vouchers are another option, as is waiving the compulsory $250 student services fee (planned for introduction in 2010) in return for community involvement. These alternatives to debt reduction would assist students who are facing more immediate financial challenges.
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The very existence of organisations like 180 Degrees demonstrates the willingness of students to become involved in community service. They just need assistance to be able to do so.
Any scheme that simultaneously assists overstretched charities, reduces unemployment, and boosts a lagging economy is worthy of due consideration.
The Rudd Government will make a decision on the scheme in coming months.
This isn’t a choice between paid or unpaid volunteering. It’s a choice between adopting a scheme that hits three birds with the one stone, or missing the birds and keeping the stone.
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