The 1930s economic crisis, also known as the Great Depression, was a severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s. It profoundly affected economies around the globe, including New Zealand, leading to massive unemployment, reduced industrial output, and significant changes in government policies and social structures.
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New Zealand's unemployment rate reached around 80,000 people by 1933, which was about 20% of the workforce at that time.
The economic crisis prompted the New Zealand government to introduce various relief measures, including public works programs and unemployment benefits.
Agricultural exports were severely impacted, leading to significant drops in farm incomes and contributing to rural poverty.
The crisis spurred political movements in New Zealand, leading to increased support for the Labour Party and ultimately contributing to its victory in the 1935 elections.
New Zealand's response to the Great Depression laid the groundwork for future welfare policies and social reforms that aimed to address economic inequality.
Review Questions
How did the 1930s economic crisis affect employment rates and social structures in New Zealand?
The 1930s economic crisis led to a dramatic increase in unemployment rates in New Zealand, reaching about 20% of the workforce by 1933. This massive job loss not only created economic hardship but also resulted in significant shifts in social structures, as families struggled to make ends meet. The societal impact included increased reliance on government support and changes in community dynamics as people came together to cope with adversity.
Discuss the government's response to the economic crisis in New Zealand and its implications for future policies.
In response to the economic crisis, the New Zealand government implemented a series of relief measures aimed at mitigating unemployment and poverty. These included public works programs that provided jobs for many citizens and unemployment benefits that offered essential support for those without work. The effectiveness of these measures contributed to a broader acceptance of state intervention in the economy, paving the way for the development of a welfare state that prioritized social safety nets.
Evaluate how the Great Depression influenced political change in New Zealand during the 1930s.
The Great Depression significantly influenced political change in New Zealand by shifting public sentiment towards more progressive policies. The crisis led to widespread dissatisfaction with existing political leadership and increased support for parties advocating for social reform. The Labour Party capitalized on this sentiment, winning the 1935 elections and implementing policies that addressed economic inequality and established foundational aspects of a welfare state. This period marked a crucial turning point in New Zealand's political landscape, emphasizing the role of government in managing economic crises.
Related terms
Unemployment: The state of being jobless and actively seeking work; during the Great Depression, unemployment rates soared globally, including in New Zealand.
Welfare State: A government system that provides social services and financial assistance to its citizens; New Zealand developed aspects of a welfare state in response to the challenges of the Great Depression.
Economic Policy: The actions taken by a government to influence its economy; New Zealand adopted various economic policies in an attempt to combat the effects of the Great Depression.