How Did Rationing Affect Australia's Economy

Words: 456
Pages: 2
Open Document
Rationing was Necessary in Australia because of shortages in supplies caused by the disruptive influence of war and the need to supplies to Great Britain. Rationing included petrol, clothing, tea, sugar, butter and meat. Breaches in rationing regulation could result in fines of £100 or even prison time of 6 months. As a consequence of the rationing a black market was formed where goods were sold for above market value.
Rationing was caused by the destructive nature of the war and how it disrupted the workforce.
Rationing was imposed to ensure equal access to food and clothing. The government believed that a reduction in consumer spending would create surplus money for funding the war. A large number of the labour force joined the army during the war meaning there were less farmers, factory workers, general labourers. This meant that Australia’s production dropped significantly. Any remaining labourers were needed to manufacture goods for …show more content…
Petrol was rationed so the Army could still use their vehicles and planes. Tea was rationed japanese activity in the pacific disrupted supply chains. Sugar butter and meat were rationed by the pound, allowing for each adult to get the same amount of food.
The black market was developed as a method of circumventing the laws governing coupons and the limits of the controlled economy. The goods were sold at highly inflated prices, they could even buy extra coupons. To combat the growing black market laws were passed called the black marketing act these increased the penalties for serious crimes to a minimum of £1000. Once rationing was announced Australians hoarding items they had access which increased shortages.
Australians were greatly encouraged by the government to grow their own food. Quite often people grew vegetables, kept chickens or they had a large amount of land they kept a cow or two. This even extended as far as people digging up public parks for use as vegetable
Show More

Related Documents: How Did Rationing Affect Australia's Economy

Great Depression Research Paper

nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s.[1] It was the longest, most widespread, and deepest depression of the 20th century, and is used in the 21st century as an example of how far the world's economy can decline.[2] The depression originated in the United States,…

Words 7222 - Pages 29