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Why did Jack Lang clash with the Commonwealth government during the Great Depression?

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During the Great Depression, New South Wales Premier Jack Lang clashed with the federal government primarily over economic policy and the handling of state debt.12

Elected in 1930 on a platform that opposed the deflationary measures favored by the federal Labor government under James Henry Scullin, Lang pursued a confrontational approach to the financial crisis. His key actions included:1

  • Debt Repudiation: In April 1931, Lang refused to pay interest on overseas loans, a move that deepened divisions within the national Labor Party and contributed to the federal government's eventual defeat.12
  • Financial Defiance: In February 1932, Lang rejected a federal statute that required state revenues to be paid to the Commonwealth. He subsequently forbade state government departments from handing over money to the federal authorities.12

This escalating conflict led to a constitutional crisis, resulting in Lang’s dismissal by the state governor, Sir Philip Game, in May 1932.12