Te Papo, N.D. Rogernomics

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Te Papo, N.D. Rogernomics Rogernomics - Muselrrn of N Sor..io\ lr..re.l{q.a & g" S{.^1e Te Papo, n.d. Rogernomics The 1984 Labour Gov€rnment, led by David Lange, in,roau""O .ri"uf *"i"1 _-O I economic refo.ms -dubbed Rogernomics' afler controversial Finance Minlster Roger Douglas. Sorne people prcspered, bul others suffered as unemploymenl rose and lhe stock markelcrashed. LJntil the century's end, govemmenls maintained policies limiling the state's lnvolvemeni in people's lives and lhe economy. ,FoR I PEoPLE WHo DoN,T WANT THE GoVERNIVIENT IN THFTR LIVTS ,, THIS or-ooLL I IRoGER\o[4tcsl 'iAS BEE\ A BoNANzA FoR wFo ARE DrsABr FD I irurreo. cesouircn Ess, uNEDUcATFD, rr HAS BEEN A 'r RAGEDv' I I DA, O LANGE \-WZFdLAND PotVE VtNtS?Eo (r93.-49J,1996 Economic woes in the early'1980s ln the early 1980s, New Zealand's economy was in rouble. The country had losl its gLraEnteed exporl market when Briia n joinad the European Economic Union in 1973. The oilcdsis lhat year had also laken a toll- Moreover, welfare costs had doubled since the 50s, with more people becoming eligible for support. From 1946, allmothers recelved lhe Family Benefl, noljust lhose in low- incomefamilies. lo the 70s, the oomesiic Purposes Beneil. Accideot Compensation for ,ron-eamers, and the National Superannuation ret remenl scher.e inflaled cosls further. Muldoon era To keep New Zealand afloat e€onomically, Prime Minister Roben Muboon imposed slrict rest ctions on wages and foreiqn clrrrency. lmport tariffs prolected local manuiacturers, and farm€rs received subsidies. But l\,4uldoon's harsh econornic controls and abras ve pe6ona ity provoked bilterness - in his own parlyand beyond. People also resented the state's size and role in theirlives. A mood for change was n the alr. Labour wins the 1984 election Th€ Labour Party, led by David Lange, swept Nalionalfrom power in lh€ 1984 election, forming the fourlh Labour Govemment Desple ils socialisl roots, the new governmant ntroduced ladlca free-market reforms. These reforms were soon dubbed 'Rogemomics', after controve6ial Finance l,{inister Roger DoLrglas. Rogernomics in action The Labour Govemmeni mdic€lly roduced lhe size and role of the stale. ll corpomtised and resiructured qovernmeni deparimenis, often n prcparation for pivaUsauon and sold some slate assels lo privale inveslors. lt abolished many economic conlrols and removed larming s!bs dies. The governmenl also dismant ed the cenirally organ sed welfare systenr, emphasising instead the role otprivale and rcgionalwelfare providers. Some people prospered in the new environment. Prcperty specrJlalron look off, and the stock market soared as thousands ofordinary NewZealanders boughl shares. Others losliheir livelihoods as lhe slate seclorshrank and unemploymeni rose- 1987 stock market crash The economlc boom was shon-lived ioo ihe siock market crashed in 1987. Some investors suffered severe losses. The Labour Government continued lls free-market policies, bui divislons had formed in ths parly. Lange llred Douglas in 1988 and resigned his leadership the year after Ths pady lost lhe nexl election. 1990s - National continues Labour's legacy The 1990 NationaL Government conlinued prvaiising state assets and slashed welfare paymenls. Wellare refom in NewZealand was fasterand more wide-.anging lhan anylvhere else in the world. lndividual res ponsibllity was again encouraged- OCopyrghi Museum ofNewZeaiaid Te Papa Tongarewa We ington, New Zealand. More stories http://sites.tepapa.govt.nzlsliceofheaven/web/html/roge.nornics.html 1t2 1s/0s/2018 Rogernom cs N4useum of New Z€a and Te Papa Tongarewa nr s$ I (l r.dS7 siock lnteract Cai t/orr sirrviv€ n lh-^ ear )r 20!i .enlLr entiiy famc'rs N.w Z.alarders and guess whch deciae http://siles.tepapa.govt. nzlsliceofheaven/web/htmi/rogernomics-html 212 I.
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