the U.S. Economy began to enter into a difficult period, and the rate of U.S. investment into Australia began to decline. Even more ominously, Australia began to face greater economic competition and a steady decline in her terms of trade. In this context the governments that followed the Menzies government in the period 1966–1972 increasingly found it hard to manage the rising expectations of consumers and industry. In the period 1972–1973 Australia began to experience the beginnings of "stagflation" as unemployment and inflation began to rise simultaneously for the first time. 1972–1982 The post-war economic boom ended with "stagflation" in the early 1970s. This was primarily caused by developments in the international economy; the Oil Crisis, Britain's entry into the E.E.C., and growing economic competition in Australia's traditional export markets. However, the economic policies of the ALP Whitlam Government did not prove effective at dealing with stagflation. Gough Whitlam had been elected on a platform that included the rapid expansion of government funded health and education programs. At the same time the labour movement, of which the Labor Party was a part, were opposed to both wage restraint and economic restructuring. Higher government spending coupled with higher wages, but not linked to higher productivity, created strong inflationary pressure. Whitlam's lack of a majority in the Australian Senate, and the hostility of the conservative state governments made it difficult to effectively manage the economy. In 1973, with Australia experiencing sharply rising inflation, Fred Gruen, special consultant to the Whitlam Government, proposed a 25% across the board tariff cut, which was adopted by the government. The 1973 oil crisis had caused prices to spike and, according to government figures, inflation topped 13% for the year 1973-1974. By mid-1974, Australia was in an economic recession. The rapid change in economic conditions was not countered by a change in government policy. In particular Whitlam's desire to increase the wages and conditions of the federal public service was not checked. This fed into a 30% increase in imports and a $1.5 billion increase in the trade deficit by the end of 1974. Primary producers of commodities such as beef were caught in a credit squeeze as short-term interest rates rose to extremely high levels. Unemployment also rose significantly despite continuing government spending. The failure of the Whitlam Government to effectively manage the Australian economy was a factor in the crisis that ended that government's term