Free enterprise has been the hallmark of economic prosperity since the Depression of the 1930s and the importance of a strong and liberated private sector has been underscored in the policies and programmes of progressive governments over the years.
Ironically, it is the left-leaning parties with socialist philosophy that unleashed the private sector through economic reforms, as evidenced in many countries. It was the Labour Party in New Zealand and the Congress Party in India (both known for their strong trade union influence) that ushered in a new era of private sector investment and growth. Their irreversible reforms have led to higher levels of private sector wealth, leading to a state of neoliberalism that emphasises economic growth through liberal politics.
However, developments over the past few years have demonstrated the fact that an unchecked private sector would be harmful not only to a country’s economy in general and the working class in particular.
Experts believe that globalisation has led to concentration of wealth among a few, reckless expansion, acquisitions and mergers and a subdued and somewhat neglected working and middle class.
The greatest lesson taught by the recent global financial crisis is the need for greater regulation of the private sector. The collapse of large companies and the resultant loss of jobs and drain of liquidity have called into question the wisdom of unchecked private sector operations.
The emergence of the ‘Occupy Movement,’ which began in New York on September 27, 2011, has had its rippling effect in many parts of the world, including New Zealand. By year-end, it had grown to engage protestors in 95 cities in 82 countries, involving more than 2750 occupy communities.
This international protect movement, primarily directed against economic and social inequality, has ominous signs of becoming a major worldwide problem.
US columnist David Brooks has argued that analogies between today’s America and that of the Progressive era are misplaced, and that Progressive-era solutions are ill suited to modern times.
However, left-leaning political commentator Chris Trotter says there was no cause for worry in New Zealand. Writing in The Press, he said that rather than gilded social contempt, New Zealand’s experience in 2011 was one of social solidarity and collective exhilaration.
“The devastating February 22 Christchurch earthquake, in which 182 people were killed, drew New Zealanders much closer together and mobilised the best qualities of the Kiwi character, while the joy that enveloped the country when the All Blacks won the Rugby World Cup made it especially hard for those hoping to expose the nation’s shortcomings to win a hearing,” he said.
We believe that the findings of Anthony Ravlich, chairperson of the Human Rights Council Inc (New Zealand) in his book, Freedom from our Social Prisons’ (currently under our Editorial Review) and the dangers of neoliberalism would be points to ponder.
