New Zealand Revolution: Economic and Social Impact Report

This report analyzes the economic and social impacts of the New Zealand Revolution, focusing on the documentary "Land of Plenty-2002." It examines the shift from a stable, Keynesian economy with full employment to neoliberal policies implemented in 1984, which led to significant changes. The report highlights the effects of the Reserve Bank Act and the Employment Contracts Act, which increased unemployment, poverty, and income inequality. It discusses the government's focus on controlling inflation, the decline in living standards for many citizens, and the rise in social issues such as crime. The report also explores the failure of labor representatives to address workers' grievances and the marginalization of the unemployed. It concludes by emphasizing the negative consequences of the government's policies on the citizens.

Running Head: NEW ZEALAND REVOLUTION 1
New Zealand Revolution
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NEW ZEALAND REVOLUTION 2
The New Zealand revolution
The documentary “Land of Plenty-2002” highlights some economic concepts which were part of
the revolution in New Zealand, and the main areas of change which affected the economy and
the social wellbeing of the people.
In the 1950s and the 1960s after the World War II, New Zealand had a stable economy
and what was referred to as a descent society. This meant that everyone had a right to a job and
employment was sustainable. Restriction of imports protected the local and new industries, and
the centralized economic growth resulted in creation of wealth and full employment for all.
However, this state of socioeconomic tranquility changed as soon as a new government took
office in the year 1984. The new minister of finance decided to try a new way of developing the
economy and after consultation with financial advisors, resolved to abandon the existing
commitment to full employment which had very severe impacts on the citizens. The reserved
bank was the task force mandated with formulation of policies to control inflation and maintain
price stability.
Stratification of the socio economic dimension of the New Zealands began. On one side
was a few who had retained their jobs and on the other hand was a big group of redundant and
unemployed workers. The purchasing power of the redundant workers dropped and so were their
living standards. The expensive loans and mortgages due to increased interest rates by the
reserved bank meant that middle and low income earners had less to spend, less to live on and
less to invest.

NEW ZEALAND REVOLUTION 3
Income inequality among the citizens continued to thrive as factories closed down and
more workers were laid down. The gap between the rich and the poor was widened as the
economic policies affected low income earners more. Unemployment caused families to begin
depending on charity food while the jobless youth turned to crimes such as burglary.
As a result of reduced purchasing power of the many jobless citizens, many of them fell
below the poverty line. Even for those who were employed, their wages kept on dropping and
failure to accept the pay cuts would render one fired. The fear by workers to lose their jobs
worked to the advantage of factory managers who cut their wages.
Representative democracy bore no fruits for the workers. The labor representatives failed
to represent the workers’ grievances and that angered them and resulted to streets protests. They
cited identity politics by their representatives in the labor ministry and accused them of using the
workers’ situation for their advantage and mileage without caring for their interests. The
unemployed felt marginalized and unheard by the ministry of employment for failing to give
them long term employment contracts, and instead gave them short term contracts which had
unreliable working hours and earnings. Instead, the government was involved in the imposition
of its free trade policies. Poverty diseases began attacking them too and this only made their
economic capability deteriorate even more.
In conclusion, the government of New Zealand did what they considered vital to control inflation
even though it did not work out well for the citizens. Unemployment and poverty as a result
thereof could have been avoided by implementation of inclusive and lenient policies which were
not only to serve the interests of the government.