Subsidising the rich

The [New Zealand] Government is increasing its commitment to developing a knowledge society with an extra [NZ]$60 million for its Digital Strategy, including [NZ]$44.7 million of contestable funding. The strategy, released yesterday in advance of the Budget, says creating a knowledge society will require connections to the internet to be instantaneous, affordable and available everywhere. ... [T]he Government [will] spend up to [NZ]$400 million on digital strategy initiatives in the next five years. Government digs deep to create a wired society, 'New Zealand Herald', 17 May

If the Government wants to create a 'knowledge society' it should first decide what a knowledge society is. A functional literacy level of 100 per cent would be a good start. A sensible government would set up some such meaningful targets, raise the funds to deliver them, then let the market decide how to achieve them. See here (pdf), for how Social Policy Bonds could be issued to raise literacy of girls and women in Pakistan. I suspect this well-intentioned government initiative will end up subsidising the stay-at-home movie watching habits of well-off New Zealanders.