Responsible for the realisation of a wide range of progressive social reforms[1] during its time in office, it set the tone of New Zealand's economic and welfare policies until the 1980s, establishing a welfare state, a system of Keynesian economic management, and high levels of state intervention.

Under Labour, the New Zealand representative in the League spoke strongly against appeasement of aggressors, particularly the Italian invasion of Abyssinia and the German occupation of Czechoslovakia.

Following the war, Fraser became involved in the setting up of the United Nations, and was especially concerned that small countries not be marginalised by the great powers.

[5] The immediate context of the 1935 election was the Great Depression which had started in 1929 and affected New Zealand as badly as most other Western countries.

The coalition government instead supported the economic orthodoxy which was that a balanced budget was of paramount importance and that state spending had to be cut to offset the decline in taxation revenue.

By 1935 – after the election had been delayed a year because of the depression – many voters who would not otherwise have trusted Labour were disillusioned with the economic orthodoxy and prepared to try something new.

Labour was helped by a change of leadership in 1933, after leader Harry Holland died and was replaced by Michael Joseph Savage, who did not seem to be a frightening communist but rather a kindly uncle figure.

Carl Berendsen, the head of the Prime Minister's Department later said that the first cabinet consisted of a trio of able men (Savage, Fraser and Nash), a witty and worthy toiler (Semple) and a gaggle of non-entities.

[40] Berendsen wrote that Nash was a poor administrator and organiser, he: The government increased in popularity during its first term, as people felt the benefits of its policies and of economic recovery.

It cannot realistically be credited with ending the Depression in New Zealand, as most economic indicators were showing signs of improvement before the 1935 election[citation needed].

The election was also notable for the defeat of Māori statesman Āpirana Ngata, by the Labour-Ratana candidate Tiaka Omana.