GLC Tuncurry 7 to 10 Campus History Faculty
Year 9 History 1930 to 1939 - Depression for many Australian Families
Using the summary below and extra evidence from the text book, write a 20 line extended response that describes the various experiences Australians had during the depression.
Include as many of the key words in bold from the points above. You may need to define what these words mean as we discuss this information in class.
The Great Economic Depression, set off by the October 1929 Wall Street stock market crash in New York USA, also severely affected the NSW economy and changed many people’s lives. How did it do this?
1) Unemployment, already high at 10% in mid 1929, increased to 21% by mid 1930 and still rising, hitting almost 32% in mid-1932. That meant 1 in 3 men could not find a job.
2) Factory production fell almost 10% in 1929-30 and another 30% in 1930-31.
3) This meant less production, less sales, less need for workers in factories, more sackings and more misery as workers became unemployed.
4) Sacked workers could then not buy factory goods because they had little income so therefore the terrible cycle repeated itself.
5) The Government had borrowed heavily for public works such as the Harbour Bridge. (that means NSW was in debt and had to pay loans and interest back)
6) NSW had the highest level of public expenditure in Australia, especially because of social services payments. (pensions, welfare, dole)
7) In 1930 the NSW State budget rapidly went from a surplus (save more than you spend) to a deficit (spend more than you save, go into debt and owe money to others) greater than all the other Australian states put together.
8) At the same time as this economic collapse was great social disruption and distress. Many families really suffered as they had little income and therefore bills were almost impossible to pay.
9) Many families struggled on part-time work income, or depended on charity or the dole.
10) For thousands, unemployment also meant eviction, with shanty towns of homeless people springing up in many areas.
11) The Depression was a crisis that governments throughout the world did not seem to how to deal with.
12) One result of people being unhappy was the rapid growth of radical or extremist political organisations. These groups often gained support because they promised a quick solution to their misery. (Even Hitler used these arguments to come to power in Germany).
13) In NSW, some Communist, socialist, workers’ and unemployed organisations advocated direct action, particularly in relation to opposing house evictions; while on the right side of politics, nationalist and fascist-style organisations such as the New Guard rapidly gained in membership.
The Lang Government and the Crisis
Premier Jack Lang. His radical plan for dealing with the Great Depression caused his downfall but for years afterwards loyal supporters claimed "Lang was right".
When the Nationalist-Country Party Coalition government of Thomas Bavin crumbled at the 1930 elections in the face of the Depression onslaught. J. T. (“Jack”) Lang was able to form his second Labor Government. Lang’s initial program to maintain wages and to use loans to fund public works, create jobs and generate prosperity, was frustrated by the Federal Government, the Legislative Council. The Supreme and High Courts also blocked his second attempt to abolish the Legislative Council. His 1931 ‘Lang Plan’ of inflation, reduced interest rates and loans re-negotiation was rejected by the Federal Scullin Labor Government. Lang then refused to pay loan interest and the Commonwealth commenced legal action. The NSW Labor party split into State Labor (supporting Lang) and Federal Labor (supporting Scullin). Reluctantly, Lang then agreed to the Premiers’ Plan to cut government expenditure but did little to implement it. The split in Labor ranks worsened and precipitated an early Federal election in December 1931 which was won easily by the United Australia Party led by Labor’s former Treasurer, Joseph Lyons.
The issue quickly now came to a head between the State and Commonwealth Governments with the new Federal Government regulating to take over NSW state taxes. Lang still refused to conform with the Commonwealth requirements, ordering State pubic servants to refuse to cooperate with the Commonwealth. On 19 March, 1932, Lang opened the Sydney Harbour Bridge (although a member of the right-wing New Guard had managed to slash the ribbon ahead of him), but this great public show of hope and achievement was the last. While hundreds of Bridge workers joined the ranks of the unemployed in NSW – now with the worst level of unemployment in Australia – Lang continued his unorthodox attempts to raise funds. On 13 May, Sir Philip Game, the Governor of NSW, determined that Lang was acting unconstitutionally, and dismissed his Government. The Opposition Leader, Bertram Stevens, was appointed as Premier and an election was called which Stevens won decisively.
From
http://www.parliament.nsw.gov.au/prod/web/common.nsf/key/HistoryDepression