Zach Castles on defending capitalism

Zach Castles writes:

The incoming government makes no secret of its regard for capitalism as a “blatant” failure. This is despite nearly one billion people over the last 20 years having been lifted out of poverty because of it. Moreover, the very “neoliberalism” the incoming prime minister criticises, and yet refuses to define, has helped many Kiwis out of a life of welfare dependence and into the dignity of a job.

No one is saying capitalism is perfect. Especially Bill English. His entire social investment approach, one I had the privilege of working on government, anticipates this by accepting that governments must invest more money early on to reduce the cost of crime, health inequalities and intergenerational welfare dependence.

But to engage with Jacinda Ardern’s attempt at class warfare rather than to call it out is to New Zealand’s detriment.

Capitalism is what allows us to fund the welfare state, and health and education.

In a world of Brexit and Trump, and a media-branded upsurge against perceived “neoliberalism”, the question is no longer whether National is capable of reform, but how far it is prepared to redefine a centre ground that is rapidly shifting in the direction of Jeremy Corbyn, the far-left leader of the UK Labour Party. The fact that National and New Zealand First are not in government shows that this process is already underway. A fundamental schism between the socialist left’s unholy union with authoritarian populism on one side, and the liberal right on the other, is opening up.

Populism and socialism is always a bad measure.

Far from being in a “very, very dark place” as Paddy Gower was quick to assert, National has just been handed a golden opportunity. In fact, the biggest impact Bill English can make now on the National Party, more than at any other time in his political career, will be in these initial weeks and months.

As the party regroups and refocuses its efforts, National has never had a better opportunity to make capitalism cool again by re-making the case that it is the best tool we have to transform lives in a dangerous and uncertain world. Indeed, transforming lives through the investment approach is the essence of the Key-English legacy, and it is National’s task to defend that legacy and advance its cause vigorously in the next three years.

I agree.