How and why was the Whitlam government dismissed?
...g with how the dismissal came to be. A weakening economy played a relevant roll in creating the dismissal of the Whitlam government. There was a world recession at this time. This was partly due to OPEC (organization of petroleum exporting countries) limiting the amount of oil supplied which increased prices and produced inflation. Unemployment resultantly increased which lead to higher taxes and more inflation. The economy went in spiraling circles. There were two scandals involving two different government ministers which reflected badly on the government which also contributed to why the government was dismissed. The first scandal was to do with Rex Connor. Rex Connor was the minister for minerals and energy, he wanted to borrow billions of dollars to buy foreign companies controlling Australian resources. In December 1974 the loan was approved however in January 1975 the amount of money was reduced! In may 1975 Rex corner was told to terminate his negotiations with the middle east and the loan all together. A jo...