How Did World War 1 Affect The Australian Economy

Australia’s economy in world war one
The establishment of the commonwealth of Australia on 1 January 1901 removed two major obstacles to the development of Australian society: the disunity of the state and the exploitation and control of Britain. Since then, Australia has entered a new historical period. The main task of the new period is to vigorously develop the social economy, establish the basic laws and basic policies of the state, adjust the foreign policy, and improve the national political system and economic system. By the time of the First World War in 1914, Australia had completed the task. The impact of World war one on Australia can said to have changed dramatically, bringing Australia into a new era. At the start of the war, Australia

In addition to sending troops to fight with the British, Australia also seized the opportunity to develop the domestic economy. Australia is not very solid economic foundation, because the main sectors of the economy is not from industrial sector, but animal husbandry, agriculture and mining, and the department of product is mainly depends on the world market, it needs of industrial goods are also mainly depends on the international market. Import and export trade plays a decisive role in Australian economic life. The world war has disrupted the old pattern of world market, which must have a great impact on the Australian economy. In addition, Australia's import and export trade is likely to attack by enemy ships at any time through the long and dangerous road of over ten thousand miles. The economic situation is very serious. However, Australia has adopted a series of measures and policies, not only make the economy is basically stable, and make agriculture, animal husbandry and the development of the industry have a certain

World War 1 brings Australia negative aspects. Form 1914to 1920, the percentage of the product producing have decrease almost 10%. Average income decreased 16%. As Ian McLean observes, “Had this occurred in peacetime it would have been classified as a depression.” Between 1932 and 1933, Australia emerged from the economic crisis, and the economy gradually became prosperous, which characterized by rising export prices, industrial recovery and increasing fiscal revenue. In 1934, the national budget and final accounts were in surplus. Australia was the first western country to emerge from the great