Australian political leaders responded to the Great Depression with a mixture of austerity measures and social welfare programs. At the height of the depression in 1932, the nation was split regarding the two priorities of stability vs welfare, so much so, that tension between Federal and State leadership almost culminated in a civil crisis. It is clear, that this serious lack of coordination affected the success of the economic recovery in Australia. With only a real improvement coming later in the 30s, largely due to non-political factors.