Unemployment and fraud during the Great Depression in New Zealand

Abstract

Purpose

This paper aims to provide a historical understanding of the unemployment context experienced by the New Zealand population during the Great Depression, which might have caused people to commit financial crimes, such as fraud, to survive.

Design/methodology/approach

The main source of information is narratives from newspaper articles published by 42 newspapers from 1931 to 1950 that explore New Zealanders’ experiences during declined economic conditions.

Findings

During the period studied, New Zealanders suffered because of various challenges, mainly unemployment. The government’s response was criticised by the people who used the newspapers as a medium to unleash their frustration about the fairness of unemployment relief for the unemployed and taxation of those who were employed. Some people who struggled in between jobs, as well as some who found themselves being disadvantaged, turned to deviant behaviour such as fraud. The fraudsters might be thought of as the victims of the day, committing a crime of survival, not a crime of choice.

Research limitations/implications

This research promotes more historical studies to enrich fraud-auditing literature. The lack of detailed information reported in the newspapers during this period limits making specific links to individual circumstances.

Originality/value

Fraudsters have always been perceived as responsible for their destinies, but a wider social and political context is rarely examined in fraud cases. The period chosen for this paper represents the extreme condition in which the elements of motive, opportunity and rationalisation are all interwoven into one.

Citation

Othman, R. and Ameer, R. (2021), "Unemployment and fraud during the Great Depression in New Zealand", Journal of Financial Crime, Vol. 28 No. 2, pp. 375-385. https://doi.org/10.1108/JFC-07-2020-0135