Independent economist Brian Easton says Christopher Luxon has to address the need to maintain and enhance New Zealand’s social cohesion

This is a re-post of an article originally published on pundit.co.nz. It is here with permission.

Dear Christopher Luxon,

The greatest challenge you face is that of the nation’s social cohesion (rather than the economy). The problem has been with us ever since Hobson arrived.

New Zealand is a diverse society. For over a century we suppressed this truism by relegating women to the kitchen, Māori to the pa, gays to the closet, and ignoring the role of religion in secular life. We practised majoritarianism by a group – who among other things were straight, Pakeha, Anglican, middle-class, male, rugby followers – which pretended theirs was the only acceptable lifestyle and the country should be run in their interests. Those who did not conform to this majority were ignored, treated as quaint eccentrics, or repressed.

Today that diversity is more apparent. Affluence has enabled individuals to exhibit their differences, while social media enables like-minded minorities to join together. We are also importing the fashions of antagonistic public dialogue from overseas, most notably the rhetoric of conflict from the US – a society which seems to be falling apart because it lacks social cohesiveness.

All societies are under these pressures for roughly the same reasons. Some rigidly suppress differences, perhaps emphasising a dominant ethnicity or religion at the expense of everyone else and ignoring that there can be great diversity within the dominant group. Others face, in despair, the terrifying prospect of social unrest and breakdown.

Each country is different and has to find its own resolution (or not). New Zealand has three major differences. We have no significant external threat (except global warming); we are small; we have MMP, which recognises the diversity in a way that Frontrunner/FPP did not (Its electoral system is exacerbating the disruption in US politics).

You, Mr Luxon, will be reminded of MMP every time you enter Parliament’s chamber. You are not there because a majority of the electorate voted to support you. You look at your benches and see three disparate parties, none of which is entirely unified; the other side of the House looks no better.

You know, even if the commentariat does not, that the voting outcome of the 2023 election was not very different from that of the 2017 election except that the parties at either extreme garnered a little more support. But if the electorate did not change much, the government has shifted dramatically (because New Zealand First changed its mind).

So you have not really been given the radical mandate some of your colleagues aspire to. You are tentatively charged by the electorate to govern New Zealand in everyone’s interests; you will be judged by an unforgiving electorate.

The easy approach might seem to be a majoritarianism which attacks any dissenters. As tempting as it may seem, it is unlikely to work. Recall Rob Muldoon. He could argue his abrasiveness got him re-elected. But that was under Frontrunner. Had it been under MMP he would have lost both 1978 and 1981 as well as 1984.

There are numerous counterexamples. Prime Minister Bill Massey (1912-1925), a founder of a key precursor of the National Party, was a member of the Orange Order, notorious for his harsh response to the miners’ and waterfront workers’ strikes in 1912 and 1913. He matured.

He was against the charging of Cardinal James Liston for sedition in 1922; he saw little advantage in sharpening the religious antagonism of the times. A cabinet full of hard-line Protestants overruled him. (Liston was found not guilty.) You may be on Massey’s side, Mr Luxon, but you will not be given a decade to mature.

So how are you going to deal with the tensions and divisions, especially as you have people on your side of the House who revelled in intensifying them when in opposition?

The first obvious action is to talk to your cabinet and caucus about the issue, explaining the importance of not exacerbating social tensions and of healing social divisions. Keith Holyoake gave excellent advice when he told MPs to breathe through their nose – not opening their mouths at inconvenient moments. You need to discuss the same message with the leaders of your coalition parties and ask them to pass it on to their caucuses.

One of the nastiest rising tensions is between media and politicians. What is going on is surely mutually agreed destruction invigorating public extremists; apparently journalists are receiving death threats too. Your press office needs to talk to the press gallery and agree to take a more courteous approach. It must recognise that both sides are doing necessary tasks but they need to avoid abrasive, stupid and useless questions and answers.

Does that deal with around Parliament? You also need to change Parliament’s approach to the wider community. In particular it, needs to resist the temptation to interfere. Apparently over half of the population are opposed to trans-women being involved in women’s sports. (That’s something outside of my expertise.) It is easy for Parliament to pass a law but I suggest that it instead leaves the decision to individual sports bodies. Many will get into a pickle but explain it is their responsibility, not Parliament’s.

Another area to restrain is the nation’s habit of simplifying what is going on into two opposing and antagonistic camps. The obvious current example is Māori and non- Māori. You do not have to be very socially perceptive to know that there is enormous diversity within each group and much overlap. When someone claims to speak on behalf of Māori or whatever, the one thing that is certain is that the speaker is at best, representing just one of the group’s segments.

Take a leadership role; say your government respects all Māori or whatever, will listen to all of them and not just some self-appointed spokespeople, and will govern on all their behalfs. Get your speechwriters to always include a reference to the diversity within any group whenever a speech mentions them.

The issues of delegating down and recognising diversity applies in many other areas. It might be summarised by ‘subsidiarity’, the notion that decisions should be taken at the lowest possible level. It has not been prominent in the thinking of the New Zealand government. For instance, it loves to bully local government, directing what they should or should not do. It is time for the centre to withdraw and leave them to make as many local decisions as possible, even if they make ones with which you personally disagree.

Subsidiarity is about respect for local and individual decisions and tolerance of diversity. As far as I can see, respect and tolerance is the way to maintain social cohesion in a liberal democracy. The alternative is centralisation, majoritarianism and authoritarian repression followed by ugly civil strife.

There is an economic dimension. The market is a very powerful means of decentralisation – of practising subsidiarity. In that sense, I was a supporter of the market liberalisation we associate with Rogernomics (and I wrote about it before 1984). Unfortunately, the neoliberals decentralised very badly. Very often their economics was embarrassingly shonky and they never really understood the issue of market design – getting the right balance of regulation. Paradoxically, they were bullies using their centralised powers to impose their theories – look at the way they treated local government. And a properly working market requires a fair income distribution – instead, the policies increased its unfairness. Ironically, the neoliberals’ arrogance brought on MMP which is designed to reduce the power of the centre.

Mr Luxon, you govern with the consequences of that heritage, and the real danger that, because of the way its institutions operate, you will govern a deeply divided society if you pursue a majoritarian strategy. There has to be a better way. Decentralisation and subsidiarity, respect and tolerance are keys to it.

Yours sincerely, Brian Easton.

*Brian Easton, an independent scholar, is an economist, social statistician, public policy analyst and historian. He was the Listener economic columnist from 1978 to 2014. This is a re-post of an article originally published on pundit.co.nz. It is here with permission.