POLS 2250 – February 27, 2013
New Zealand CTV W5 Video
- New Zealand’s economy
- Auckland (place in New Zealand) Council ran out of money
- Auckland Zoo – had to shoot baby hippo – had no room to expand hippo pen
- 3 and a half million people
- 1984, everything changed – “disappearing gov’t” - “Beehive” is what the
building is called where gov’t gathered
- New Zealand’s credit ran out
- Have no foreign exchange – New Zealand bonds were not selling
- When a country defaults on a bond? If we default on one loan, you default all
loans and credit will be blown everywhere
- Canada has debt more extreme than New Zealand
- Sheep has been the big dollar earner for New Zealand - 1973 – PM Maldoon
did not take the hit but borrowed money to keep up standard of living
- Air New Zealand went to Australia, telephone company to America, three-
quarters of countries post-office were shut down
- Buying used cars that don’t even work from Tokyo – NZ paid good money for
these cars too. Elderly NZ didn’t want to from the Japanese.
- NZ needs foreign cash to keep up to pay foreign debt
- People holiday at home, eat out less, standard of living went from 3rd to 22nd
- Unemployment - 1955 just 22 people, and in 1993, 200,000 people (when the
video was made)
- Food poisoning runs high
- Hospital – Canada’s below 33 grand a year got a poverty card and paid less
for everything – if you were over the 33 grand, you had to pay. The drugs
used to be free for everyone. Lots of people stopped going to the hospital or
taking the pills they were prescribed because it was so expensive.
- Single moms. Once youngest child turns 7 years old, you need to start looking
for a job.
- Pensions – used to be very generous – pension was equal to 80% of average
wage (even if you made 1 million a year before)
- Lamb is sent from NZ to France for Easter – farming significant
- Advice for Canada?
o Takes longer to get in debt in richer countries
o When credit rating is on the line, we can’t ask other people to fund our
standards forever because eventually they will say no.
Auckland (place in new zealand) council ran out of money. Auckland zoo had to shoot baby hippo had no room to expand hippo pen. 1984, everything changed disappearing gov"t - beehive is what the building is called where gov"t gathered. Have no foreign exchange new zealand bonds were not selling. If we default on one loan, you default all loans and credit will be blown everywhere. Canada has debt more extreme than new zealand. Sheep has been the big dollar earner for new zealand - 1973 pm maldoon did not take the hit but borrowed money to keep up standard of living. Air new zealand went to australia, telephone company to america, three- quarters of countries post-office were shut down. Buying used cars that don"t even work from tokyo nz paid good money for these cars too. Elderly nz didn"t want to from the japanese. Nz needs foreign cash to keep up to pay foreign debt.