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Jack Lang Dismissal: A story of Backstabbing in the 1930's

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james ma

on 6 December 2010

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Transcript of Jack Lang Dismissal: A story of Backstabbing in the 1930's

A story of political backstabbing in the 1930's The Jack Lang Dismissal 1930's: The Depression In the 1930's the world was in the grips of a global recession.
This was because of the collapse of the American economy, which other global economies relied on. Australia: The Situation
Therefore, in Australia, the economy was in freefall.
Australian agricultural markets, especially wool, had issues finding places to sell their produce.
The budget was severely in debt, thousands were unemployed, and thousands more had lost all their savings and were homeless. THe plans: As a direct result, the Australian government came up with all sorts of plans to fix the situation. The Niemeyer Plan In 1930, the federal government felt it needed help.
Therefore, it invited Sir Otto Niemeyer over, the director of the Bank of England.
He believed that deflation was needed, and Australia was overspending.
Therefore, the Niemeyer plan was to cut spending in all areas, like welfare, education and social benefits. The Theodore Plan Meanwhile, Australia's most able politician, Edward Theodore had another plan.
He proposed inflationary tactics, that is, pumping $$$ into the economy to stimulate it.
This didn't work, because the Commonwealth Bank, which wasn't under government control, refused to participate.
Note this was reasonably successfully done by Kevin Rudd in 2008. The Government Plan Eventually the government settled with the Niemeyer plan.
As a result, the government cut spending by 20% and increased taxes.
Wages, pensions, and welfare payments were all cut Jack Lang's Rebellion Jack Lang was the Premier of New South Wales between 1925 and 1927.
He was considered a people's champion by some, and a Red by others, pushing social welfare reforms like the 40 hour week.
He rejected the Government's plan, saying that cutting spending would increase the hardship of ordinary Australians, and proposed his own plan The Lang Plan Jack Lang proposed a radical new plan.
He proposed to stop paying interest on the debt to the British, and reinvest the money saved into the economy.
People's Opinions Lang's policies were far too radical for the government.
Also, the banking sector considered these measures dishonourable and far too extreme. Canberra Response The federal government was upset, and was forced to pay New South Wales's interest.
It passed all sorts of legislation to recover the money from the New South Wales Treasury.
However, Lang refused to allow them access to the treasury. Lang's Dismissal In May 1932, the New South Wales governor advised Lang he had broken the law.
Lang didn't relent or back down.
As a result, the governor dismissed Lang and called an election. Aftermath There were huge shows of support for Lang with demonstrations of support drawing crowds of up to 300 000.
The slogan "Lang is right" was very popular.
Despite all this, Lang lost the election by a landslide, and he died in 1975.
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