Background of Economic instability

New Zealand cops the lot in all these cases — closing markets, rapidly rising import prices, increasing double diget inflation, a prediction of a new $1000 M balance of payments deficit [from Institute of Economic Research], unemployment, equivalent to 35,000, high emigration of skilled workers and professionals, and small and medium businesses laying off staff and some-closing down. Despite all this, company profits are increasing.

This is the context which the National Party Conference should be seen in. The urgency of party Chairman Chapman's address [apart from his lavish praise of PM Muldoont] was a good indication of the panic which big business [Chapman is Chairman of the Board of BNZ] is in in the present situation. His speech was a tough right wing offensive of the 'slackness' of New Zealand capitalism. During his address, he attempted to give the impression that the failure of New Zealand capitalism was due to the lifestyle of working people. A preoccupation with rugby, racing and beer would have to be replaced with the ideology of profits, productivity and exports. He stopped short of saying that even if all three were achieved, history shows that this does not necessarily effect a rise in workers standards of living. What history does show us is that late capitalism must push real wages down to survive.