Editing Rogernomics (section)

===Events after the 1981 election===
After Labour's narrow loss in the [[1981 New Zealand general election|1981 election]], Douglas found a growing audience in the parliamentary party for his view that Labour's established approach to economic policy was deficient. His colleague [[Mike Moore (New Zealand politician)|Mike Moore]] claimed that there was a public perception that Labour policy sought "to reward the lazy and defend bludgers".<ref>Oliver 1989 pp. 28–29</ref> Douglas's case for a radical approach was strengthened by the belief among many of his parliamentary colleagues that the economy's deep-seated problems could only be solved by extensive restructuring. It was understood that some restructuring must follow the [[Closer Economic Relations]] agreement with Australia, which took effect in 1981 and reduced barriers to trade between Australia and New Zealand.<ref>Oliver 1989 p. 31</ref> At the same time, many economists were arguing for the greater use of competition as a tool of policy, and expressing concern about excessive or inappropriate regulation of the economy.<ref name="Jesson 1989">Jesson, Bruce ''Fragments of Labour'' Penguin Books 1989 {{ISBN|0-14-012816-6}} pp. 39–40</ref> In 1983, Lange succeeded Rowling as Labour leader. He gave Douglas responsibility for economic policy and made it clear that economic policy would determine other policy.<ref>Oliver 1989 p. 30</ref>

Although Douglas was innovative in his approach, and his open disregard for Rowling had earned him a reputation as a maverick, he remained within the mainstream of economic thinking in the parliamentary Labour Party.<ref>Oliver 1989 p. 35</ref> He argued in 1982 that the government should actively support small business, and intervene to stop the aggregation of assets by big business. In his view, the government should use the tax system to encourage productive investment and discourage speculative investment. Until the end of 1983, Douglas saw exchange rate, tax and protection policies as means of actively shaping the business environment. In August 1982 he supported a contributory superannuation scheme as a means of funding industrial development and in February 1983 he wrote a paper called "Picking Winners for Investment" which proposed the establishment of local consultative groups to guide regional development. In a paper dated May 1983, Douglas argued that an [[unregulated market]] led to unhealthy concentrations of market power.<ref>Oliver 1989 pp. 13–15</ref>