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Salient. Newspaper of the Victoria University Students' Association. Vol 42 No. 19. August 6 1979

An Economic Issue

An Economic Issue

Essentially, the conflict between the parliamentary wing and the membership of the National Party is an economic one. Quite simply, the overwhelming feeling within the rank and file is that the Government is not producing the economic policies, and results, that they desire.

New Zealand's economic system is a capitalist one. On this point I believe that few National Party members would disagree; for "capitalism" is simply another term for the system of "free enterprise". Capitalist systems can be distinguished by the presence of one group of people who own and manage industry and business, and another necessarily larger group of people who work in those businesses and industries, produce commodities and are paid wages by the first group. Again, this last point, I imagine, would not be disputed by National Party members.

However, the point at which the National Party and I would fail to continue this agreement, is the claim that a Government acting in the interests of the first group - of business — is acting in the interests of all New Zealanders, and those of the country. In fact, delegates at the conference a week ago made great use of this argument in their rhetoric. They spoke of the unity of all New Zealanders, used the word "us" to signify that we all have the same interests and that all can be equally satisfied.

Unfortunately, this is simply not true. National members see that there are two distinct social groups, yet cannot see that the interests of each are not the same. In fact, the interests of the first group (or, "bourgeoisie") are diametrically opposed to those of the second group (or, "the working class".)

In a capitalist society such as ours, workers must sell their labour power to the capitalist. Workers rely on this employment in exchange for wages and the capitalist relies on the labour power of the workers. The capitalist supplies the workplace, the worker works and the capitalist then owns and sells the product of this labour. In this exchange between worker and capitalist, the worker produces commodities which have a greater value than the wages he or she has been paid. By producing commodities of greater value than wages paid, the worker therefore gives to the capitalist the commodity of labour power, over and above that which has been paid for.

This is what happens in a capitalist society, and this is the reason that it is said that a capitalist system (or "free enterprise" system) represents, or works in, the interests of the employing group - the bourgeoisie. Logically, capitalism cannot work in the interests of the working class.