Australia entered the Depression with a debt crisis and a credit crisis. According to author Anne Henderson of the Sydney Institute, Lyons held a steadfast belief in "the need to balance budgets, lower costs to business and restore confidence" and the Lyons period gave Australia "stability and eventual growth" between the drama of the Depression and the outbreak of the Second World War. A lowering of wages was enforced and industry tariff protections maintained, which together with cheaper raw materials during the 1930s saw a shift from agriculture to manufacturing as the chief employer of the Australian economy – a shift which was consolidated by increased investment by the commonwealth government into defence and armaments manufacture. Lyons saw restoration of Australia's exports as the key to economic recovery.Anne Henderson; Joseph Lyons: The People's Prime Minister; NewSouth; 2011. A devalued Australian currency assisted in restoring a favourable balance of trade. Tariffs had been a point of difference between the Country Party and United Australia Party. The CP opposed high tariffs because they increased costs for farmers, while the UAP had support among manufacturers who supported tariffs. Lyons was therefore happy to be perceived as "protectionist". Australia agreed to give tariff preference to British Empire goods, following the 1932 Imperial economic conference. The Lyons government lowered interest rates to stimulate expenditure. Another point of difference was the issue of establishing national unemployment insurance. Debate on this issue became strained with the Country Party opposing the plan. On this issue, deputy leader Robert Menzies and Country Party leader Earle Page would have a public falling out.
Australia entered the Depression with a debt crisis and a credit crisis According to author Anne Henderson of the Sydney Institute Lyons held a steadfast belief in "the need to balance budgets lower costs to business and restore confidence" and the Lyons period gave Australia "stability and eventual growth" between the drama of the Depression and the outbreak of the Second World War A lowering of wages was enforced and industry tariff protections maintained which together with cheaper raw materials during the 1930s saw a shift from agriculture to manufacturing as the chief employer of the Australian economy – a shift which was consolidated by increased investment by the commonwealth government into defence and armaments manufacture Lyons saw restoration of Australia's exports as the key to economic recoveryAnne Henderson; Joseph Lyons The People's Prime Minister; NewSouth; 2011 A devalued Australian currency assisted in restoring a favourable balance of trade Tariffs had been a point of difference between the Country Party and United Australia Party The CP opposed high tariffs because they increased costs for farmers while the UAP had support among manufacturers who supported tariffs Lyons was therefore happy to be perceived as "protectionist" Australia agreed to give tariff preference to British Empire goods following the 1932 Imperial economic conference The Lyons government lowered interest rates to stimulate expenditure Another point of difference was the issue of establishing national unemployment insurance Debate on this issue became strained with the Country Party opposing the plan On this issue deputy leader Robert Menzies and Country Party leader Earle Page would have a public falling out