Leaving the USA: The New Zealand Option

The following guest column was written by Michael Reps.

I came across the EPJ site during a Google search for the topic “Leaving the USA”. I noticed the absence of advertisements for ammunition reload kits and raccoon jerky recipes for the coming Armageddon so thought to myself, I perhaps, won't get flamed for sounding too anti American for my Pro New Zealand bias. Needless to say, I miss the America I grew up in, not because I live 12,000 miles away, but because it no longer exists. You see, freedom and democracy are not American precepts that disappear once you leave its soil. It is mans nature to be not only free in his thoughts but as a natural extension, free in his governance. And as you can see, America has less freedom today than it did 10 years ago.

I believe the solution, however, is not is stockpiling ammunition or rodent meat. It's in fostering the growth of democracy where it is welcome and not where it conflicts with the interests of a command based market system.

On that note let me give you a little background on myself. I do, in fact, know how to reload ammo and make jerky meat, I learned it while a paratrooper in the 82nd Airborne and again as a Captain in the USMC. I was born and raised in California where I spent my formative years brow beaten by Catholic Nuns with thick ankles and short fuses in the mid Wilshire area of Los Angeles. My formal education is a degree in philosophy from Claremont McKenna College. After the Marines I spent the next 15 years involved in the financial markets where I surmised that the US was heading for a cliff dive economically which ultimately led to me emigrating to New Zealand in July, 2001. Borrowing money to pay for borrowed money simply doesn’t work unless you can import new buyers of the debt at a greater rate than the debt being created.

Now, we have to ask ourselves what will a consumption driven economy look like if it loses its reserve currency status? Now that the framework for a new type of rail system has been laid, where are the new opportunities? Perhaps it wasn't just a dot com bubble for bubbles sake. Perhaps there are underlying reasons the information age captured so many imaginations. Instead of now focusing on the train wreck caused by excessive liquidity under the guise of structured finance, we should recognize that the world is not returning to pyramid economics while memories are still fresh of its dangers. Maybe cutting our loses and regrouping is a prudent strategy.

You see, While the US is still growing its population base, 300,000 people emigrate from the USA every year according to loosely compiled data by the US Census. Interestingly, that number may be set to rise according to a report issues by the Migration Policy Institute. Have a look at this study for further information.

http://www.migrationpolicy.org/pubs/americas_emigrants.pdf

New Zealand, on the other hand takes in about 40,000 people per year under their various visa schemes. And more Americans are coming. I should know, I help them in for a living with my company. The interesting thing I am observing now is the more libertarian bias these people are possessing. I suspect some of the US's most ardent patriots are holding on to their American ideals but recognizing that they are less welcome in America these days.

In New Zealand, everyone’s viewed as entitled to a “fair go”. Also with a land size the area of Colorado this means that crowds are not an issue nor a draining of resources. The “close the door behind” you mentality seen in small provincial towns in the US is non existent here. New Zealand is also outward looking as a result of its insignificance on the world stage. New ideas are embraced, and the ambitions of many desire to be tested against the rest of the world. New immigrants wanting to settle in are embraced in stark contrast with the US where new immigrants represent a drain on services.

The US is different in this regard. With 300 million people and only about 20% of the population holding passports it's more insular in nature. There appears to be stresses in the system now that lead to zero sum thinking that wealth comes at the expense of someone else’s loss. Just ask anyone who purchased a McMansion in 2006 about what it feels like to hold the proverbial “bag”. The corporate structure is one of scale and multi national exposure where as New Zealand is the land of the family business.

There was an event however, that stuck out in my mind as a moment of this contrast. Back in 2004 an American developer came out here to view real estate development prospects. After seeing so much unused coastal land he was quoted in the paper as saying New Zealand should get rid of those useless sheep and cattle, cut the hills flat and put in thousands of condos. Needless to say, I am certain this chap’s stay here was short lived, and he’s still wondering about how his permits got lost and his visa wasn’t renewed. Remember, 4 million people puts 2 degrees of separation between you and everybody else. It also means the charlatans and hucksters get run off to Sydney.

Speaking of visas, there are several avenues you can use to enter New Zealand. English speaking and being resourceful are your major requirements. The basic premise behind the immigration policy here is one of attempting to add benefit to the economy either through your skill set, small business start up, or passive investor. Required in each of these applications is a police report and medical exam. The medical is more about being a burden on the healthcare system, than anything else so don’t worry if your elbows are on backwards.

The easiest way to understand the viability of an emigration is to visit the New Zealand Immigration website at http://www.immigration.govt.nz/ Suffice it to say, it is not a lottery based system but one that has clearly defined guidelines.

I believe an argument can be made that even if the US were to enact policy that set it back on the right course, the amount of time necessary to purge the system, repay the debt, and bring about this change may be measured not in decades but in generations.

Lastly, as a historical note, the last time the US saw a net migration of its population out of the country was during the decade of the great depression. Or as the Zimbabweans I have met are fond of saying, “The is the difference between an immigrant and a refugee is only timing".

Michael Reps moved to New Zealand in 2001. He maintains US Citizenship and New Zealand Permanent Residency. He has assisted in numerous emigrations from the US to New Zealand. Further details on his services can be found at www.yieldqwest.co.nz