THE GREAT DEPRESSION Print
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The 1920s after the First World War had been hard for a great many people, but there were signs of progress. Cities had grown, and with it new roads and railways built. New land was opened up and huge irrigation schemes had begun. Australia’s future was looking good again.
 
Unfortunately all this progress following the demise of the ‘People’s Bank’ as explained later came at a great cost - Australia’s national debt to the banks was growing! 
 
 (See the story of the Commonwealth Bank by D.J.Amos)
 
 

 

THE GREAT DEPRESSION

In 1931 Australia, like many other nations in the world, found itself in trouble. The depression was now at its worst. All industrial nations were facing the sad, starving faces of the unemployed. Australia was unable to sell its wool, wheat and metals overseas. There was no money left for the building works that employed so many people in the previous ten years. Australia was now heavily in debt.
 
With such a shortage of money, people soon stopped buying goods. As a result, the factories that made these goods soon stopped producing and even closed down altogether further increasing job loses. Small farmers could no longer keep up their interest payments from the dramatically reduced prices they received on their produce. Many surrendered their farms to the banks only to swell the ranks of the unemployed. In fact by 1932, about one in every three Australian workers was unemployed. Australia was in the grip of a depression.
 

POVERTY IN THE MIDST OF PLENTY

The population of little over six million people in Australia at that time, could produce enough wheat to feed thirty million, enough wool to clothe one hundred million, and enough food, minerals, metals and raw materials to supply more than twice the populations size. There was no shortage of any kind, yet all this came to a sudden holt. People lost their homes, their farms, their jobs, and their livelihood.
 
 What was missing? Money! The stock market crash of 1929 was the culprit, which drained the money supply the economy needed. As money became scarce people went without even though everything they ever needed was at hand. There was no real disaster and there was no flood, drought or war to create such problems. In fact it was a problem they could overcome quite easily. Obviously the missing money enforced on the world, must be replaced, but did it have to be replaced as debt?
 
The Commonwealth Bank known as the Peoples Bank could of supplied all the money Australia needed! The Great Depression in Australia did not need to happen! Australians of the first one hundred years, would not of tolerated this acute shortage of money, they would of used some other medium instead, such as vouchers, promissory notes, anything!
 
There should never be a shortage of money. The money supply must be continuely monitored to maintain a correct balance to the supply and demand needs of a nation.
see link  The Role Of Money