Essay The Rise Of The Great Depression

1165 Words Oct 9th, 2015 5 Pages
During the 1930s the world was struck by a crippling economic slump due to the crash of the American stock market. The world soon started to call this slump “The Great Depression”. Until 1935 the New Zealand government was a coalition government consisting of the Liberals and Reform Party, later known as The Nationalists, these two very conservative parties thought that they could help New Zealand through the depression by cutting government spending and focusing on the farmers, who they considered to be the backbone of New Zealand’s economy. This ultimately caused a lot of poverty and unemployment amongst the middle and lower classes of New Zealand’s society. On December the 6th 1935 the Labour Party took office with a very unique ideology, which was, according to Keith Sinclair, considered to be “a mixture of Keynesianism, socialism, and Social Credit, with a dash of humanitarianism, internationalism, and nationalism for flavouring” . From 1935 to 1940 the Labour Party introduced many policies, all of which were reactions to The Great Depression. The Labour Party believed these policies would help the country progress towards a new bright era in New Zealand’s history and towards financial stability.
After winning the election in 1935 it has been recorded that “the new government moved with speed” , Labour quickly set their Keynesianism ideals into motion by increasing government spending, to try and combat the depression; and they started to insulate the New Zealand…

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