Editing Neoliberalism (section)

==== New Zealand ====
{{See also|Rogernomics}}
In New Zealand, neoliberal economic policies were implemented under the [[Fourth Labour Government of New Zealand|Fourth Labour Government]] led by Prime Minister [[David Lange]]. These neoliberal policies are commonly referred to as [[Rogernomics]], a portmanteau of "Roger" and "economics", after Lange appointed [[Roger Douglas]] minister of finance in 1984.<ref>{{Cite book |title=My Life |last=Lange |first=David |author-link=David Lange |publisher=Viking |year=2005 |isbn=978-0-670-04556-3 |pages=143}}</ref>

Lange's government had inherited a severe balance of payments crisis as a result of the deficits from the previously implemented two-year freeze on wages and prices by preceding Prime Minister [[Robert Muldoon]], who had also maintained an [[exchange rate]] many economists now believe was unsustainable.<ref>{{Cite book |title=When Schools Compete: A Cautionary Tale |last1=Fiske |first1=Edward B. |last2=Ladd |first2=Helen F. |publisher=[[Brookings Institution Press]] |year=2000 |isbn=978-0-8157-2835-1 |location=Washington, D.C. |pages=[https://archive.org/details/isbn_5458999018950/page/27 27] |url=https://archive.org/details/isbn_5458999018950/page/27}}</ref> The inherited economic conditions lead Lange to remark "We ended up being run very similarly to a Polish shipyard."<ref>{{Cite news |url=https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10340844 |title=David Lange, in his own words |date=August 15, 2005 |work=[[The New Zealand Herald]]}}</ref> On 14 September 1984, Lange's government held an Economic Summit to discuss the underlying problems with [[Economy of New Zealand|New Zealand's economy]], which lead to calls for dramatic economic reforms previously proposed by the [[New Zealand Treasury|Treasury Department]].<ref>{{Cite book |title=Revolution: New Zealand from Fortress to Free Market |last=Russell |first=Marcia |publisher=[[Hodder Moa Beckett]] |year=1996 |isbn=978-1869584283 |pages=75}}</ref>

A reform program consisting of [[deregulation]] and the removal of [[tariffs]] and [[subsidies]] was put in place. This had an immediate effect on [[New Zealand's agricultural community]], who were hit hard by the loss of subsidies to farmers.<ref name="Russell-1996">{{Cite book |title=Revolution: New Zealand from Fortress to Free Market |last=Russell |first=Marcia |publisher=[[Hodder Moa Beckett]] |year=1996|isbn=978-1869584283 |pages=80}}</ref> A superannuation surcharge was introduced, despite having promised not to reduce [[superannuation]], resulting in [[Labour Party (New Zealand)|Labour]] losing support from the elderly. The financial markets were also deregulated, removing restrictions on [[interest rate|interests rates]], lending and foreign exchange. In March 1985, the New Zealand dollar was [[Floating exchange rate|floated]].<ref>{{Cite web |url=http://www.TeAra.govt.nz/en/cartoon/33456/floating-the-new-zealand-dollar |title=Reserve Bank – Reserve Bank, 1936 to 1984 |last=Singleton |first=John |date=June 20, 2012 |website=Te Ara Encyclopedia}}</ref> Additionally, a number of government departments were converted into state-owned enterprises, which lead to significant job losses: 3,000 within the Electricity Corporation; 4,000 within the Coal Corporation; 5,000 within the Forestry Corporation; and 8,000 within the New Zealand Post.<ref name="Russell-1996" />

New Zealand became a part of the global economy. The focus in the economy shifted from the productive sector to finance as a result of zero restrictions on overseas money coming into the country. Finance capital outstripped industrial capital and the manufacturing industry suffered approximately 76,000 job losses.<ref>{{Cite book |title=I See Red |last=Bell |first=Judith |publisher=[[Awa Press]] |year=2006 |location=Wellington |pages=22–56}}</ref>