ABSTRACT
Rationalization's earlier popularity had been bound up with the notion of an export and employment revival occurring under the prevailing system of political economy. By emphasizing instability rather than productive efficiency as the principal barrier to industrial recovery in the 1930s, pro-planning groups were tapping into the concerns of trade unions, business organizations and government alike. Midst an atmosphere of crisis and depression, rationalization to promote long-term efficiency was a low priority for the new administration. Indeed, it was through monetary, fiscal and trade policy that the National Government thought it could make its main contribution to restoring the prosperity of private enterprise. Gross fixed capital formation in plant, machinery, vehicles, ships and aircraft rose in aggregate to levels significantly above those seen in the late 1920s. Productivity growth between 1929 and 1938 stands up well to international comparison and was also faster than in the 1920s.
