Great Depression in Australia

Great Depression In Australia

Australia suffered badly during the period of the Great Depression of the 1930s. The Depression began with the Wall Street Crash of October, 1929 and rapidly spread worldwide. As in other nations, Australia suffered years of high unemployment, poverty, low profits, deflation, plunging incomes, and lost opportunities for economic growth and personal advancement. Pharlap brought hope to the Australian people throughout the 1930s. The Australian economy and foreign policy largely rested upon its place as a primary producer within the British Empire and Australia's important export industries, particularly primary products such as wool and wheat, which suffered significantly from the collapse in international demand. Unemployment reached a record high of around 30% in 1932, and gross domestic product declined by 10% between 1929 and 1931.

There were also incidents of civil unrest, particularly in Australia's largest city, Sydney. Though Australian Communist and far right movements were active in the Depression, they remained largely on the periphery of Australian politics, failing to achieve the power shifts obtained in Europe, and the democratic political system of the young Australian Federation survived the strain of the period.

The Scullin Labor Government had just assumed power in 1929 when... The Labor movement split over how to deal with the crisis, with Treasurer Ted Theodore failing to have his inflationary plan pass Parliament, New South Wales Premier Jack Lang losing office over a proposal to default on international loan payments, and Labor defector Joseph Lyons forming the United Australia Party which provided stable and more fiscally conservative government from 1932 until his death in 1939.

Thus Australia, unlike the United States, did not embark on a significant Keynsian program of spending to recover from the Depression. Nevertheless, the Australian recovery began around 1932. Australians took consolation from sporting achievements through the Depression, with cricketer Don Bradman and race horse Pharlap achieving long-lasting fame.