The Great Depression
In 1930, international commodity prices collapsed, triggering a fall in export earnings and increasing overseas debt. The Bank of England insisted the Australian state, territory and federal governments balance their budgets, cut all overseas borrowing and lower all award wages by 10 per cent. Infrastructure projects, which had begun in the 1920s under the previous 'men, money and markets' policy, were stopped immediately.
During 1931, protest marches and demonstrations by the unemployed in all states and territories demanded increased sustenance pay and rent subsidies.
Public expenditure was cut at the same time that private businesses were putting thousands of people out of work. For the majority of people, there was little government assistance, especially at the beginning of the crisis. Private charities were often the only source of support outside of families and neighbourhood communities. Eventually, the states started providing 'sustenance' or 'susso' for the unemployed in the form of ration vouchers, but this was worth only a tiny amount of the basic wage.
In May 1932, the Loan (Unemployment Relief Works) Act 1932 (Cth) authorised the Australian Government to give financial assistance to the states and territories on condition that employment councils would be established. The government expenditure on relief works for the financial year 1935–36 provided full-time employment for approximately 55,000 from a total of 300,000 jobless. The amount spent on dole payments was twice that spent on the provision of relief work for the unemployed.
About 1,000 unemployed marching in Perth to meet the premier of Western
Australia, Sir James Mitchell
(State Library of Western Australia)
