Thursday 3 July 2014

Inequality: A threat to Democracy?



Key Points:   
            Overview of inequality in New Zealand
            A revolution of the right: reforms and re-reforms
            Inequality: a threat to democracy?
            A new crisis with an old solution


The global financial crisis of 2008 and the deep recession that followed have given people throughout the world pause to consider the changes that have occurred in their societies in the last few decades. Massive protests have erupted in response both to the revelations of scandalous irresponsibility on the part of business elites and to austerity programs implemented to “solve” the crisis. With the Eurozone teetering in crisis and the United States experiencing a painfully slow and jobless recovery, New Zealand has fared relatively well.

Sheltered from the worst of the speculative maelstrom by the stability of the Australian banking system, we have been able to sit and wait patiently for commodity prices to bounce back, without having to resort to the desperate policies of many other Western governments. We are now a “rock star” economy according to analysts, with economic growth projected to be in the top six of the OECD nations.[1] But is this rosy picture deceptive? This article will attempt to answer this question, taking as its point of departure the proposition that the success of a nation’s economy should be measured by how the majority of its citizens fare.


Inequality in New Zealand

Perhaps the most widely discussed aspect of the financial crisis is inequality. Earlier attempts to bring the matter to public attention were quickly dismissed by mainstream commentators as being a “non-issue” because “rising tides lift all boats”. We were repeatedly instructed to embrace Margaret Thatcher’s maxims: “there is no alternative,” we must “glory in inequality and see that talents and abilities are given vent and expression for the benefit of us all.”[2] However, it has now been acknowledged by figures across the political spectrum that inequality is anything but a non-issue, in fact it may be the issue policymakers will have to confront if long-term confidence in the present economic system is to be restored. Research by the International Monetary Fund (IMF) has indicated that inequality has a cooling or even deleterious effect on long-term economic growth. They observe three ways in which inequality acts negatively: by denying low income families the money they need to invest in their children’s education; by allowing the wealthy to capture the instruments of policy making; and by making societies more dependent on credit and hence, more unstable during shocks. The former chief economist of the IMF, Raghuram Rajan, has also argued that inequality was one of the driving factors behind the global financial crisis.[3] The international statistics detailing the extent of inequality and how it has grown paint a clear picture of this crisis. In the United States, between 1977 and 2007, the top 1% of American income earners acquired 57% of the net increase in national income, while from 2000 to 2007 the same group gained 93% of the increase. In terms of wealth, the richest 1% owned 35% of household and corporate wealth in the period 2006 to 2007.[4]

Despite New Zealand not having a powerful business sector akin to the United States the prevalence of inequality is all too evident. The top 1% of income earners in New Zealand own three times more wealth than lowest 50%,[5] and own 16% of the country’s total wealth, while bottom half owns just 5%.[6] Income gaps are the greatest since records began in 1980s,[7] with the average household income of the top 10% is nine times that of the bottom 10%.[8] From the mid-1980s to the late-1990s the income gap between the rich and the rest widened faster than in any other developed country.[9]

The response of mainstream economists is blunt: inequality is worthwhile because wealth will “trickle down”. However, inequality in New Zealand does not mean that we all gain from the increase in the wealth of the 1%, or even simply that the rich get richer. Inequality means the poor get poorer, and the middle struggles merely to keep things level. There are now twice the number of New Zealander’s living in poverty as there were in the 1980s – approximately 800,000.[10] Real wages have remained effectively static for the last few decades. Any wage growth that low and middle-income households (incomes of $25,900 or less) have experienced has been attributable almost exclusively to tax credits and other government benefits – that is, the income from work for these households has not increased since 1987.[11] The share of national income going to wage and salary earners has dropped from 60% in the 1980s to 45% by 2002,[12] a share lower than in almost any other developed nation.[13] To maintain living standards as the gap between living costs and income increased, people have turned to credit, with private debt soaring from around 60% of disposable income in 1991 to 140% now (the bulk being mortgages).[14]  And, of course, people have further compensated for the hole in their pay packet by working longer hours.[15] Meanwhile the top 10% of households have seen their income grow by nearly 80%, with incomes for the top 1% more than doubling.[16]

Framed in social terms, the effect of inequality is staggering. Of the close to a million New Zealanders living in poverty, between 170,000 and 270,000 are children.[17] One major report ranked New Zealand as 28th out of 30 developed countries for child welfare, better only than Mexico and Turkey.[18] One fifth of poor households report going without essential items like decent footwear, heating through the house, or birthday presents for family members.[19]  In half of poor households, food runs out because there isn’t enough money at the end of the week.[20] Moreover, Māori and Pacifica are twice as likely as Pākehā to be represented in these statistics.[21] Inequality percolates through every aspect of people’s lives, whether it is housing, health or education.

A revolution of the Right

How then did it get to this? The answers are complex, but a general causality may be delineated. The post-war global economy was characterised by an international system of financial and commercial regulations known as Bretton Woods. The system was designed to facilitate international trade in the context of nation states pursuing large-scale programs of investment in public services and infrastructure. In New Zealand these programs began early with the election of the Labour Party in 1935. By the 1970s cracks in the system began to appear, and these were exploited by the “New Right” who lead a rapid transformation of the global economic order – from a Keynesian (or welfare-oriented) to a monetary paradigm. The new perspective held that inflation was holding back economic growth and needed to be brought under control.

Simultaneously arguments were made that the market was the most efficient allocator of resources, and that it needed to be freed from state intervention. This process of “deregulation” took place all over the world in a relatively short space of time, and by the end of the 1980s the global economy had changed completely. Quite suddenly corporations were virtually unrestricted in where they could invest or produce – a process known as globalisation. The West underwent a rapid process of “deindustrialisation” as large manufacturers moved to the third world in search of “flexible” labour markets. Full employment, which had been a beloved feature of the post-war West, was over. States slashed spending on public services and sold off as many assets as they could manage politically. The trade unions were defeated and their membership dived.

New Zealand’s experience of this process is colloquially known as “Rogernomics”, the namesake of the former Minister of Finance, Roger Douglas, who led the reforms. Like many Western economies, New Zealand was in decline in the 1970s. The highly protected and state-subsidised model was no longer sustainable – change was inevitable.[22] That being said, while it was clear that reforms were needed, the extremes to which they were taken in New Zealand were quite unnecessary.[23] Unlike the United States and Britain where the process was led by radical conservative governments, “Rogernomics” was directed by a Labour government. It was described by the international media as “an exhilarating dash for economic freedom … Delighted progressive businessmen hardly dare believe that a Labour government is doing these things, while bewildered old trade union leaders loyally pretend that it isn’t.”[24] The government was praised for “out-Thatchering Mrs Thatcher”[25] and creating “a paradise for free-marketers”, although “not for those New Zealanders who have lost their jobs,” they reluctantly added.[26]

The reforms of the 1980s were carried out at lightning speed – most Bills were read under urgency, rendering the consultation process effectively redundant. By the end a new state had been cast which looked radically different from the welfare model. Traditional public services, like housing, health and education, were hollowed out by funding cuts and restructuring. As one commentator concluded, public servants were “being asked to do more work with fewer resources, their personal accountability has been increased, the security of their positions removed, and the distance between the public and the Public Service widened.” [27] In fact the gap was so wide that areas of policy-making of critical importance for general welfare were effectively taken out of public hands. The Reserve Bank Act 1989 stands out: the Bank was given independence to design and implement monetary policy with the Minister of Finance only empowered to set inflationary targets, even though the Minister is actually elected by the public while officials at the Bank are not.

Some attribute the source of inequality simply to “deregulation”, and although this is undoubtedly a part of the problem, the root cause is in fact “reregulation” – that is, the restriction of democracy. During a parliamentary debate later in 1990, the then Minister of Finance in the new National government, Ruth Richardson, enunciated the spirit of the age:
The myth is that the democratic method is that institutional arrangement for arriving at political decisions which realises the common good by making the people decide for themselves. The reality is the process of arriving at decisions through a competitive struggle for the people’s vote. Party politicians are the response to the fact that the electoral mass is incapable of action other than a stampede.[28]
Democracy has always been viewed as a threat to the power of those by those with capital, and indeed the surge of democratic tide during the 20th validated their cynical caution: if ordinary people have power they will demand a more just system, that is, an end to inequality. In New Zealand this meant a comprehensive welfare state. The 1980s should be viewed, therefore, as the culmination of a great struggle, taking place over the course of a century, by the powerful to re-establish their control of democratic institutions.  To demonstrate this connection we must examine the history of late 19th century New Zealand politics.

Democracy and its decline

The anti-democratic zeal which characterised the 1980s was reminiscent, although with roles reversed, of the early struggle to establish democracy in New Zealand. It is rarely acknowledged when we reflect on our own political tradition that for the first few decades of self-government from 1854, New Zealand was not a democracy of any form. “Not only that, but many of those who held power were determined that it would not turn into one either,” historian Tony Simpson observes, in his revealing study the early years of our political system.[29]  The constitution of 1852 enfranchised perhaps 6000 men out of a population of 115,000. There was no secret ballot and, particularly in rural areas, local magnates kept a close eye on how their leaseholders (and later, labourers) voted. The move towards a secret ballot (Election by Ballot Bill 1869, enacted in 1870) was vehemently opposed by leading citizens. One prominent parliamentarian who rose in opposition was Hon. Hugh Carlton, late of Eton and Cambridge. An “implacable enemy of democracy and anything else that extended rights to the people at large”, he rose to correct a statement by another member who was in favour of the secret ballot.[30] It had been claimed that in Britain the same system had been introduced to protect tenant labourers who were being evicted for not voting Conservative.  On the contrary, Carlton argued [emphasis added]:
...it had been found expedient that protection should be given them, not from the aristocrats, for they were the natural allies of the working classes, but from the tyranny and oppression exercised over them by trade unions, and the cruelties which had been brought to bear against those who presumed to differ in opinion from the leaders of those unions.
Undeterred by its opponents, the cause of labour, embodied in workingmen’s political associations, unions, lodges and friendly societies, was to gain greater and greater popularity. As historian Erik Olssen, in his remarkable study of the artisanal working class Dunedin suburb of Caversham, relates:

Whenever men and women wished to accomplish any purpose in Caversham they banded together….Voluntarism had no prophet or champion in Caversham because its egalitarian ethos permeated the society. That ethos reflected both a powerful democratic tradition, with its faith in the goodness and reasonableness of all men and women, and the belief that men and women were social beings who could only realise their full humanity by living and co-operating with others. ‘It is only civilised beings who can combine’, J.S. Mill wrote in his essay on ‘Civilisation’. Most people in Caversham would have agreed. The democracy of the chapel, kirk, lodge and union taught the dignity, equality and independence of labour, and that master and man belonged to a moral community.[31]
This wave of popular feeling culminated in the extension of suffrage and finally to the election of the radical Liberal government, who set about a series of “social experiments” that laid the basis for what became known as the welfare state, after the election of the first Labour government.[32] Notably, Simpson concludes, “[t]o these [politicians who had opposed male suffrage] and others like them who had dominated New Zealand politics for the preceding four decades, the election of 1890 was not the apotheosis of the egalitarian society it is now generally regarded to have been. It was, rather, at best a temporary aberration, and at worst an unmitigated disaster.”[33]

The unions and working-class communities, always some of the most vibrant sources of democratic feeling, were among the first targets of the reforms of the 1980s. Savage cuts in social spending and the move to manufacturing off-shore impacted these communities the most. Douglas and his clique casually tossed aside many of the victories won through one hundred years of hardship and sacrifice.[34] The nadir was reached with the introduction of the Employment Contracts Act 1991 (ECA), which introduced voluntary unionism, individual employment contracts and restrictions on industrial action. The result is what Victoria University academics Sandra Grey and Charles Sedgwick call a “democratic deficit”, in their recent study of the attitudes of civil sector organisations towards government.[35]  They conclude that while these organisations “have in the past been a strong and necessary voice for the most marginalised of our society, since the 1980s their place in democratic conversations has come under challenge,” from both Labour and National governments, “almost to the point where for some groups the only option is to remain silent.”[36]

A new crisis with an old solution

The precise effects of the transformation, and its corollary inequality, on non-material variables like social cohesion are difficult to assess. Doubtless, the changes have meant for most people that their lives have become more atomised and alienated. Political journalist Bruce Jesson’s analysis is compelling in this regard. “By the 1970s, the tradition of progress had acquired a faintly subversive character ”. Now, “[w]e no longer aspire to anything of significance at all. We now live in a society that is thoroughly commercial, where no one aspires to anything noble or worthwhile, or if they do they are ridiculed by the cynics of the free market.”[37] The goal of “Rogernomics” was “quite simply to eradicate anything that didn’t conform with the culture of finance. Union influence and public service ideals were destroyed so that ultimately all that remained was the financial ethos of efficiency and profitability. At the end of the process, New Zealand had become a thoroughly one-dimensional society.”[38] “New Zealand might, without too much exaggeration, be thought of as a hollow society.”[39]

As economist Brian Easton puts it, “those who command policy – whether effectively or ineffectively – have to decide to what extent reducing (or increasing) economic inequality is a policy objective. Is New Zealand satisfied with shifting from a low inequality to a high inequality society? What would its founding nineteenth century migrants have thought about the fact that, after allowing for each country’s size and affluence, New Zealand is now more unequal than the countries they left? And what would those who invited them here have thought had they known their descendants would be firmly in the bottom end of the unequal distributions?”[40] His questions then beg another: Why has it taken so long for a serious discussion on inequality in New Zealand to take place? For, if it is a crisis, as some commentators have suggested, we have been in it for two decades. Alexis de Tocqueville may well have the answer: “When inequality is the common law of a society, the greatest inequalities do not call attention to themselves.”[41] Easton poses the right questions, but he errs when he attributes change agency to policymakers.

The capture of our democracy by capital is the primary cause behind inequality today. And, as has been demonstrated, inequality doesn’t simply mean the rich get richer – the poor get poorer, while the middle struggles to simply stay level. However, the route forward is not a simple matter of voting the “right” party in. A reforming government would be faced with a host of barriers that would frustrate any attempt to instrument a fairer distribution of wealth. The Fiscal Responsibility Act 1994 strictly proscribes any expansion of government expenditure, the Reserve Bank Act 1989 places monetary policy effectively out of the hands of government of the day, while the restructuring of the public service has created an ideological culture that would likely beget a bureaucratic coup if structural changes were attempted. The Employment Relations Act 2000, although softening some of the harsher aspects of the ECA, still places stultifying restrictions on traditional union activities.[42] Moreover, New Zealand is now embedded in a global marketplace – a fact that is not going to turn without significant changes in the economic centres.

A fundamental contradiction in liberal democratic theory is that many of the rights we now enjoy were not won through formal processes of government but were instead won through extra-parliamentary organisation and struggle. This contradiction will persist as long as those who control the levers of political power are those with the most money.  The hope for the future therefore lies in community, in those areas where self-organisation and opposition can go on without restriction by the state or capital. The great project for this generation – and it is a global project – is the reconstruction of civil society. It is only through a vibrant civil society that we will be able to reclaim our natural democratic rights and challenge inequality and its regressive effects.[43] It will be a long hard road − nothing worth anything comes easy − but if a rag-tag collection of poor migrants from Europe and elsewhere could dream of a better world, we their descendants and heirs can too.


Further Reading

Inequality

‘Special Issue on Inequality and Class in New Zealand’, The New Zealand Journal of Sociology, Vol. 28, Issue 3, 2013. See in particular Brian Easton, ‘Economic Inequality In New Zealand: A User’s Guide’, pp. 9-66, p. 33. Full issue accessible at http://ndhadeliver.natlib.govt.nz/delivery/DeliveryManagerServlet?dps_pid=IE18625730&dps_custom_att_1=ilsdb

Bryan Perry, Household Incomes in New Zealand: Trends in Indicators of Inequality and Hardship 1982 to 2011, Ministry of Social Development, Wellington, 2012.

Max Rashbrooke (ed.), Inequality: A New Zealand Crisis, Bridget Williams Books, Wellington, 2013.

Max Rashbrooke (ed.), The Inequality Debate: An Introduction, Bridget Williams Books, Wellington, 2014.

Joseph Stiglitz, The Price of Inequality, W. W. Norton, New York, 2013.

Rogernomics

Brian Easton, The Commercialisation of New Zealand, Auckland University Press, Auckland, 1997.

Bruce Jesson, Only Their Purpose is Mad: The Money Men Take Over New Zealand, Dunmore Press, Palmerston North, 1999.

Jane Kelsey, The New Zealand Experiment (2nd ed.), Auckland University Press, Auckland,  1997.

Social history

Tony Simpson, A Vision Betrayed: The Decline of Democracy in New Zealand, Hodder and Stoughton, Auckland, 1984.

Stevan Eldred-Grigg, New Zealand Working People, 1890-1990, Dunmore Press, Palmerston North, 1990.




[1] Phil Taylor, ‘The town that missed the boom’, The New Zealand Herald, February 2014, http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11207574 (accessed 6 April 2014).
[2] Lean, Geoffrey, Yvette Cooper. ‘Not Enough for Us: The Theory was that as the Rich Got Richer, We’d All Benefit. But It Hasn’t Worked.’ The Independent, July 1996, pp. 52.
[3] Andrew G. Berg, Jonathan D. Ostry, ‘Inequality and Unsustainable Growth: Two Sides of the Same Coin?’, IMF staff discussion note, 8 April 2011, pp. 9-10, cited in Max Rashbrooke (ed.), Inequality A New Zealand Crisis, Bridget Williams Books, Wellington, 2013, p. 11; Raghuram G. Rajan, Fault Lines: How Hidden Fractures Still Threaten the World Economy, Princeton University Press, New Jersey, 2010, cited in Rashbrooke, p. 11.
[4] J. Roemer, ‘Ideological and Political Roots of American Inequality’, Challenge, 54, 5 (September-October 2011), pp. 76-98, cited in Rashbrooke, p 39.
[5] Jit Cheung, Wealth Disparities in New Zealand, Statistics New Zealand, Wellington, 2007, p. 8, cited in Rashbrooke, p. 1.
[6] Ibid., p.8, cited in Rashbrooke, p. 2.
[7] Ibid., p. 10, cited in Rashbrooke, p. 1.
[8] Bryan Perry, Household Incomes in New Zealand: Trends in Indicators of Inequality and Hardship 1982 to 2011, Ministry of Social Development, Wellington, August 2012, p. 218, cited in Rashbrooke, p. 2.
[9] OECD, Society at a Glance 2011 – OECD Social Indicators, 2011, http://www.oecd.org/social/soc/societyataglance2011-oecdsocialindicators.htm (accessed 26 May 2013), cited in Rashbrooke, p. 1.
[10] The number of people living on less than 60% of the contemporary median income, after housing costs, rose from 9% in 1984 to 19% in 2011. Perry, op. cit., p. 105, cited in Rashbrooke, p. 1.
[11] O. A. Aziz, et. al., ‘Fiscal Incidence of Government Expenditure and Taxation on Household Income, 1988 to 2010’, paper presented at the 53rd New Zealand Association of Economists Annual Conference, Palmerston North, 27-29 June 2012, p. 7, cited in Rashbrooke, p. 30.
[12] OECD, ‘Unit Labour Costs – Annual Indicators: Labour Income Share Ratios’, 1980-2012, http://stats.oecd.org/Index.aspx?queryname=345&querytype=view# (accessed 21 May 2013), cited in Rashbrooke, p. 31.
[13] OECD, ‘Labour Losing to Capital: What Explains the Declining Labour Share?’, OECD Employment Outlook, 2012, p. 113, cited in Rashbrooke, p. 31.
[14] Reserve Bank of New Zealand, ‘Key Graphs – household debt’, http://www.rbnz.govt.nz/keygraphs/Fig5.html (accessed 11 December 2012), cited in Rashbrooke, p. 31.
[15] Steven Stillman, Trinh Le, John Gibson, Dean Hyslop and David C. Mare, The Relationship between Individual Labour Market Outcomes, Household Income and Expenditure, and Inequality and Poverty in New Zealand from 1983 to 2003, Motu, Wellington, 2012, p. 16, cited in Rashbrooke, p. 10.
[16] Perry, op. cit., p. 218, cited in Rashbrooke, p. 31.
[17] Perry, op. cit., p. 107, cited in Rashbrooke p. 2.
[18] David Grimmond, 1000 Days to Get it Right for Every Child: The Effectiveness of Public Investment in New Zealand Children, Infometrics Ltd for Every Child Counts, July 2011, cited in Rashbrooke p. 2.
[19] Perry, op. cit., p. 165, cited in Rashbrooke p. 7.
[20] Clare Smith, Winsome Parnell and Rachel Brown, Family Food Environment: Barriers to Acquiring Affordable and Nutritious Food in New Zealand Households, Families Commission, p. 5, cited in Rashbrooke, p. 7.
[21] Perry, op. cit., p. 118, cited in Rashbrooke, p. 3.
[22] The late political journalist Bruce Jesson observed, “[f]ew said this at the time…which is why I describe the New Right as operating with the benefit of hindsight. It wasn’t until serious problems developed in the early 1980s that a coherent critique of the protected economy appeared in New Zealand. Instead, it was the Left, oddly enough, that produced a scathing critique of the protected economy during the period when it was flourishing.” The Left Jesson is referring to here is not the Labour Party Left. The critique was written by a left-socialist Owen Gager. He argued that the protected nature of secondary industry in New Zealand meant that workers and farmers were subsidising manufacturers; that because it was inefficient and couldn’t pay its own way, secondary industry aggravated the underlying instability of a dependent economy. Bruce Jesson, Only Their Purpose is Mad: The Money Men Take Over New Zealand, Dunmore Press, Palmerston North, 1999, pp. 73-74.
[23] As Jesson correctly identifies, “[f]ree-market policies may have become fashionable throughout the world, but New Zealand is the extreme case. Most other countries haven’t changed their policies as radically as New Zealand has, and they have taken longer to do things. Some countries have scarcely changed at all. In most countries there is considerable opposition to the free market.” Ibid., p. 19.
[24] Economist, 1 June 1985, p.19, quoted in Jane Kelsey, The New Zealand Experiment (2nd ed.), Auckland University Press, 1997, p. 7.
[25] Ibid., 15 June 1991, p. 72, quoted in Kelsey p. 8.
[26] Ibid., 13 October 1993, p. 128, quoted in Kelsey p. 8.
[27] D. Bradshaw, ‘Professionalism in the Public Service’, Public Sector, Vol. 17, No. 1, pp. 13-14, quoted in Kelsey, p. 142.
[28] New Zealand Parliamentary Debates, Vol. 458, 1984, p. 1313, quoted in Kelsey, p. 41.
[29] Tony Simpson, Shame and Disgrace A History of Lost Scandals in New Zealand, Penguin, Auckland, 1992, p. 15.
[30] Ibid., p 17.
[31] Erik Olssen, Building the New World Work, Politics and Society in Caversham 1880s-1920s, Auckland University Press, Auckland, 1995.
[32] J. D. Salmond, Desmond Crowley (ed.), New Zealand Labour’s Pioneering Days: The History of the Labour Movement in N.Z. from 1840 to 1894, Forward Press, Auckland, 1950.
[33] Simpson, op. cit., p. 17; While its common place to admire, understandably enough, the Liberal to Labour period of democratisation, it is little known how much wider in scope the democratic project was in the minds of many at the time, and how close they came to realising that vision. For many, the restriction of democracy to the political sphere was unnatural – democracy had to be extended to the workplace if it was to have real meaning, that is, allow ordinary people to have a real control over their lives. The defeat of the Waihi strikers in 1912 signalled the end of that vision in the minds of the majority of working people, after that it was seen as utopian and impractical. But had the strikers succeeded at Waihi, a very real possibility, the implications would have been profound. As Olssen argues, the “union movement would have been even more powerful, and more left wing, and New Zealand’s first Labour government would have been yet more radical….all the trading banks might have been nationalised, worker-control schemes would have been vigorously encouraged.” Erik Olssen, ‘What if the strikers at Waihi had triumphed?’, New Zealand As It Might Have Been, Stephen Levine (ed.), Victoria University Press, Wellington, 2006.
[34] One of these was Michael Bassett. A cabinet minister in the Fourth Labour government, and a leading support of Douglas, Bassett had start his career as a labour historian and had written extensively on New Zealand labour and working class history He knew better than most of the great sacrifices that had been made to achieve the rights and build the communities he was helping to destroy.
[35] S. Grey, C. Sedgwick, ‘Fears, constraints and contracts. The democratic reality for New Zealand’s community and voluntary sector’, paper presented at the Community and Voluntary Sector Research Forum, Victoria University of Wellington, 26 March 2013, p. 30.
[36] Ibid., p. 2.
[37] Jesson, op. cit., p. 73.
[38] Ibid., p. 139.
[39] Ibid., p. 205.
[40] Brian Easton, op. cit., p. 33.
[41] Alexis de Tocqueville, Democracy in America, quoted in Brian Easton, The New Zealand Journal of Sociology, Vol. 28, Issue 3, 2013, p. 19.
[42] As Jesson observes, “[i]f a non-New Right government seriously attempted a revision of, say, the industrial relations legislation, it would find itself under siege from the business community, the media and its own bureaucracy. Supporting it would be a gutted union movement and nothing much else.” Op. cit., p. 16.
[43] Some possible strategies are discussed in Ciaran Doolin, ‘Democracy and Community: New Zealand at a Watershed’, Labour History Project Bulletin, Bulletin 59, December 2013, pp. 26-29. The labour movement offers perhaps the best example of an attempt to create a vibrant alternative culture one characterised by democracy and self-help. See, for example, Stevan Eldred-Grigg, New Zealand Working People, 1890-1990, Dunmore Press, Palmerston North, 1990.