The book demonstrates that a lack of investment will lead to falls in output and employment. Scullin was indeed aware of the need for credit creation and he proclaimed this only a few weeks after becoming Prime Minister. The arguments outlined previously highlight the simple lack of funds to carry out this task. Another theoretical debate among government authorities concerned the role of tariffs. Supporters of free trade suggest that protection hindered our exporting industries and reduced are export income.
Protectionists argue the presence of higher tariffs maintained a larger manufacturing base.
This may be true in the sense that many manufacturing industries were born out of manufacturing protection during depression. Therefore, although modern theory suggests that tariffs reduce national income, in reality it assisted a number of manufacturing firms. The Australian Government's attempts to implement an effective policy response to the problems of the Great Depression were significantly impaired by the lack of means and will. This resulted in contractionary fiscal and monetary policy as well as a delay in the devaluation. Contrary to what some historians believe, there was not a lack of theory.