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During the 1970s, Australia and the world’s major capitalist economies were experiencing a common set of economic problems. These problems involved a demand in wage increase, a decrease in rates of productivity, and a boom in commodity prices. ... The difference between the Australian and the Advanced Capitalist Countries’ experience was that fluctuations in prices, wages, employment, profits and production tended to be larger in Australia (Norton 1982). ... The common problems of the 1970s in the Australian economy and the Advanced Capitalist Countries will also be discussed in further details and finally, there will be a summary of the key points.
Problems which were more specific to Australia
Issues that specifically relate to Australia were inflation, slow economic growth and high unemployment. ... Stagflation emerged due to increases in export price index and increases in money wages. The problems that were more specific to Australia were due to their strong reliance on exports of primary commodities as well as government policies (Pinkstone 1992).
Problems within the Australian Economy
Australia was a rapidly expanding economy at the turn of the decade. ... As mentioned earlier, the outstanding dilemmas of the Australian economy during the 1970s were the ‘conjunction of inflation, low rates of economic growth and high unemployment, which came to be called stagflation’ (Pinkstone 1992, p. ... The poor performance of the Australian economy in this period was due to poor short-term economic management and the national long-term strategy of economic development pursued in Australia from World War 1 that was greatly supported across the broad political spectrum (Molin 2004, Week 11 Lecture notes). ... ‘The apparently booming economy encouraged the Whitlam government in its policies for social reform, larger welfare expenditure, a higher social wage and greater economic equity. ... This was a significant rise in an already inflationary economy. ... This proved to be unsuccessful as it discouraged firms from further investment and inflation continued within the Australian economy (Meredith & Dyster 1999).
Approximate Word count = 1520
Approximate Pages = 6.1
(250 words per page double spaced)
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