Read post #27. I have additional info. I'll sum up here
Each year, the government will issue EduBonds. These non-redeemable (but tradable) bonds will go towards education in a particular field. All will pay the same PERMANENT dividend on all career fields, in my theoretical scenario that would be 3%. The price of the bonds, however, can go up or down, depending on demand. If investors think a certain career field will be in strong demand in the future, they can bid on it and drive the price up.
In year 1, the government will issue bonds in 20 broad career fields, with 10,000 $10,000 bonds being issued for each career field. The government will pay (1) the owner of the bond 3% of it's value and (2) deposit 3% of the bond's value in a fund for that particular career field. If the bond's value goes up, so does the investor's ROI and so does the amount of money the career field is recieving.
In each subsequent year the government will issue more bonds, but they will be issued at their current price, not the original $10,000. In addition, the NUMBER of bonds issued will be adjusted to how much the bond's price changed the year before. If the value of a Chemistry EduBond went up 10%, 11,000 bonds would be issued for it. If the value of an anthropology EduBond went down 10%, only 9,000 bonds would be issued for it. On bonds held from previous years, the 3% dividend will still be paid to the investor, and the government will match that payout in depositing money in that career field's fund.
The market's current and future demand for certain career fields will be directly reflected in government funding. In the Arts and Music, where there won't necessarily be a business market demand, the demand of Art and Music partisans will drive how much funding gets devoted.
So, America's wants and needs for certain professions will be directly reflected in government funding. A perfect system. Are there any questions?
I don't see why anyone would spend 97% and get nothing tangible in return. It amounts to a donation scheme that has a possibility of someone donating back to the original donor at a later date.