Economic Justice Deep Dive - Understanding Wealth, Power & Change

Real World Example: Two 35-Year-Olds

Sarah - High Income Worker

Income: $120,000/year (doctor)
Wealth: $50,000 (student debt paid off)
Can't afford Auckland house deposit
Pays high income tax

James - Low Income, High Wealth

Income: $40,000/year (property manager)
Wealth: $2,000,000 (inherited properties)
Owns multiple rental properties
Pays minimal tax on property gains

Who has more economic power? Who can weather economic shocks better? This is why wealth inequality matters more than income inequality.

How Economic Systems Create Winners and Losers

The Rules of the Game Aren't Natural Laws

Economic systems aren't like gravity—they're human-made rules that can be changed. Understanding who benefits from current rules helps us see why some groups resist change and others push for it. These rules determine everything from housing costs to job availability to climate action.

Deep Dive: Housing as an Economic System

Housing illustrates how economic systems work. In Aotearoa, housing operates as both a human right (everyone needs shelter) and a financial investment (property values should increase). These two functions often conflict.

Who Benefits from High House Prices

Property owners: Wealth increases automatically
Real estate industry: Higher commissions on expensive sales
Banks: Larger mortgages = more interest income
Local councils: Higher rates revenue
Construction companies: Can charge premium prices

Who Loses from High House Prices

Young people: Can't afford deposits, forced to rent
Renters: Pay high rents, no equity building
Low-income families: Forced into overcrowded housing
Māori/Pasifika: Lower homeownership rates persist
Future generations: Inherit housing crisis

System Analysis Question

If five groups benefit from high house prices and five groups lose, why don't we just vote to lower house prices? Think about political power, representation, and how economic interests influence policy.

Understanding Economic Power Structures

How Economic Power Actually Works

Economic power isn't just about having money—it's about having the ability to shape the rules that determine how everyone else can get money. Understanding these power structures helps explain why economic problems persist even when "everyone knows" what the solutions are.

Examples of Economic Power in Action

Corporate Influence on Policy

Large corporations spend millions on lobbying to influence government policy. They can afford teams of lawyers and economists to argue for policies that benefit them.

Example: Property industry lobbying against capital gains tax
Example: Banks arguing against tighter lending restrictions
Result: Policies often favor those with resources to influence them

Information Control and Framing

Those with economic power often control how economic issues are discussed in media and politics.

Framing example: "Affordable housing crisis" vs "Property investment success"
Language matters: "Job creators" vs "Wealth extractors"
Media ownership: Many media outlets owned by wealthy individuals/corporations

Structural Economic Advantages

Wealth creates opportunities to generate more wealth that aren't available to those without capital.

Investment access: Minimum investments in profitable schemes
Credit access: Wealthy people get better loan terms
Risk capacity: Can afford to take profitable risks
Time horizon: Don't need immediate returns, can wait for growth

Critical Thinking Challenge: Analyzing Power

Choose a current economic issue affecting young people (student debt, housing costs, job market, climate change). Research and answer:

Who benefits from the current situation staying the same?
What resources do they have to prevent change?
Who wants change and what resources do they have?
What would need to happen for change to occur?

Alternative Economic Models - Beyond Capitalism vs Socialism

Māori Economic Models and Values

Before colonization, Māori had sophisticated economic systems based on different values than modern capitalism. Understanding these models helps us imagine economic alternatives and see that our current system isn't the only possibility.

Traditional Māori Economic Values

Whakatōhea: Collective responsibility and shared ownership
Kaitiakitanga: Environmental stewardship over exploitation
Whakapapa: Long-term thinking for future generations
Manaakitanga: Hospitality and care for community needs
Taonga: Value beyond monetary worth

How These Create Different Outcomes

Collective ownership: Prevents extreme individual wealth accumulation
Environmental limits: Economy serves ecology, not vice versa
Future focus: Decisions consider seven generations ahead
Social needs: Economy serves community wellbeing
Cultural value: Not everything is for sale

Contemporary Applications

Modern Māori Economic Initiatives

Kiwibank: Originally founded on principles of serving community need over profit maximization
Māori fisheries settlements: Collective ownership model for resource management
Iwi social enterprises: Businesses that prioritize community benefit alongside profit
Whenua ownership: Land kept in collective ownership to prevent loss
Cultural economy: Value creation through cultural preservation and innovation

Global Alternative Economic Models

Cooperative Economics (Mondragón, Spain)

Worker-owned businesses where profits are shared, decisions are democratic, and education is prioritized.

Participatory Economics (Kerala, India)

Community participates directly in economic planning and resource allocation decisions.

Wellbeing Economics (Bhutan)

Gross National Happiness measured instead of GDP, prioritizing social and environmental outcomes.

Circular Economy (Netherlands)

Waste becomes input for other processes, eliminating environmental degradation from growth.

Your Economic Reality - Understanding the Challenges You Face

Why Young People Face Different Economic Challenges

Young people in Aotearoa face economic challenges that previous generations didn't experience. Understanding these challenges helps you see that individual "success" or "failure" happens within systems that can advantage or disadvantage entire generations.

Generational Economic Comparison

Economic Factor	Baby Boomers (1970s)	Young People Today
House Prices	2-3x annual income	8-12x annual income
University Cost	Free (no student fees)	$6,000-$9,000/year + living costs
Job Security	"Job for life" culture	Gig economy, contract work
Environmental Future	Environmental problems seemed distant	Climate change threatening future
Wealth Building	Property investment accessible	Priced out of traditional wealth building

Systemic Analysis: This Isn't About Individual Choices

These differences aren't because young people today are less hardworking or make worse decisions. They reflect changes in economic policy, global economics, and resource distribution. Understanding this helps you:

Avoid blaming yourself for systemic problems
Recognize that solutions require systemic change, not just individual effort
Understand why your economic strategies might need to be different from previous generations
See how collective action can address shared challenges

Paths Forward - Individual and Collective Strategies

Individual Economic Strategies

Financial literacy: Understand how money, debt, and investment really work
Skills investment: Develop skills that create real value in changing economy
Network building: Build connections for opportunities and support
Alternative paths: Consider cooperative ownership, social enterprise
Long-term thinking: Plan for multiple career changes and economic shifts

Collective Change Strategies

Political engagement: Vote and advocate for policies that support young people
Economic organizing: Join or create cooperatives, unions, community initiatives
Educational advocacy: Push for economic education in schools
Cultural change: Challenge narratives that blame individuals for systemic problems
Alternative building: Create new economic structures alongside changing existing ones

Synthesis - Applying Economic Justice Understanding

Essential Understanding Check

Systems thinking: Choose one economic issue affecting you personally. Explain how it results from systemic factors, not individual choices.
Power analysis: Identify who benefits from keeping this issue unchanged and what resources they have to prevent change.
Alternative vision: Describe how Māori economic values might address this issue differently than current approaches.
Strategic thinking: What combination of individual and collective strategies could create positive change?

Extended Challenge: Research Project

Research a country or region that has successfully implemented economic policies that benefit young people (examples: Austria's social housing, Germany's apprenticeship system, Nordic universal basic services). Analyze: What made change possible? What can Aotearoa learn? What would need to change here for similar policies to succeed?

🌟 Related Te Kete Ako Resources - Ngā Rauemi Hono

🏆 Assessment & Extension

Community Project Assessment:

Research and propose solutions to local economic justice issues

→ View Cultural Assessment Strategies

Cross-Curricular Integration:

Connect economic analysis with mātauranga Māori and environmental sustainability

→ See Unit 4: Economic Justice