The Great Depression in Australia

The Great Depression in Australia was caused by a deep dependency for foreign countries. During WW 1 the country had become a major supplier in both wool and wheat. This boosted their economy up, but it also made their economy depended on other countries who want to buy their exports.

As soon as other countries could not afford to import Australian goods the country’s economy collapsed.

Before the 1930s life in Australia was good, it was a time of prosperity, most people had a job or wealth which they could lean back on. After 1929, however the lifestyle during the great depression in Australia took a major hit.

Unemployment rose to 29%, (one of the highest of the time period second only the Germany) leaving hundreds of thousands of people without work. As a result crime rates soared. Some people even needed to steal food in order to survive.

Those lucky enough to keep their job saw their pay decrease as the Commonwealth Arbitration Commission cut all wages under its jurisdiction by 10%. That coupled with rising taxes brought many middle class citizens below the poverty level.

Loans also became much harder to come by as the banks which relied heavenly on foreign money were finding it harder to come by. In the 1930s the state premiers issued the Melburne Agreement stating that they would not borrow foreign money and pull Australia out of the depression using its own resources.

The moral sank for the nation whose people who were used to a relatively high standard of living prior to the 1930s.

Recovering

By 1932 the worst was over. Unemployment was at its highest and people were beginning to think that there was no hope.

The road to recovery was slow but steady. New trading with the U.K. along with public work programs helped to boost the economy. But there was really no single event that pulled Australia out of the depression. Instead it was a combination of little events which slowly pulled the country out of its slump.

In 1932 Unemployment was at 29%, by 1939 that number had dropped to 10%. The start of WW2 also lead to an increased number of jobs and helped to lead the country to a fully recover.

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