economy

Economic Impact

The presence of thousands of well-paid Americans in the country and a large army to service brought about a minor economic boom in New Zealand and some long-term effects on local patterns of commerce. Dry cleaners, taxi drivers, and milk bars did well; there was increased activity on the wharves; and market gardeners came under pressure to grow more cabbages for the soldiers in the Pacific.

Servicing the military machine

The individual leatherneck and doughboy were not the only customers for cash-strapped Kiwis. The American military machine placed its own large demands on the New Zealand economy. The construction of the camps gave work, often under great pressure of time, to carpenters, plumbers and electricians. The administration of the bases gave jobs to typists, 'office girls' and women drivers. Then there were those who found work repairing jeeps, trucks, tanks and other machinery.

The wool industry.

This 1969 cartoon by Eric Heath shows a sheep's coat unravelling off its back, having been snagged on thistles labelled 1965, 1967 and 1968. Heath was commenting on the effect of the sudden drop in wool prices in the latter 1960s.

This diagram shows that muskets were most costly when they were most in demand - at the time of the great northern taua (raids) to the south (1818-early 1820s).

Even before his arrest, trial and acquittal on spy charges in the 1970s most New Zealanders had heard of Dr W. B. Sutch. He was a prominent citizen – known for his work as an economist, writer, public servant and diplomat.

Premiere twice in the 1870s, Julius Vogel was a staunch advocate for provincial rights, who pushed for independence for the South Island. Colonial treasurer in the Fox government, he set up a bold economic programme of public works and large-scale assisted immigration, that relied heavily on borrowing money from the London money market.