This particular issue was triggered by the decision of the Organization of Petroleum Exporting Countries (OPEC) to reduce the oil supply to Western nations. The resulting boost of oil prices created high inflations. Australia's early inflation rate was 4.4 percent, but later reached to 7 percent when the Whitlam government came to power, and in 1975 it climbed to 15 percent. This was enough to activate much disappointment of the citizens for them, but it was further exacerbated by the dramatic increase of wages. The average in 1973 was 13.6 percent then to an average of 30.8 percent within a year's period. This caused many dismays and protests by the employers, while Australians were further agitated by the increase of unemployment rate as well. Unemployment figures rose from 2.2 percent in 1972 to 5 percent in 1975. Combined with the significant increase of food prices by 19 percent, most of the citizens were driven rebellious against the Whitlam government. In addition, the recession required for Whitlam's expenditure into welfare, but his government was spending far too much in its reform already, rendering Australia helpless to the issue. Such infuriating economic results were more than enough for Australians to have doubts for the Whitlam government.
In addition, there were many outbreaks of scandals about significant figures such as Rex Connor (Minister of Minerals and Energy) and Jim Cairns (Treasurer and Deputy Prime Minister), which therefore caused the Australians to think the Whitlam government as helplessly incompetent at managing the nation due to their lack of experience and naivety. Connor had the great aspiration of securing Australia's ownership of its resources. He desired to borrow four billion US dollars in order to purchase back foreign control of Australia's resources and to assist in constructing a gas pipeline across the country. During 14th December on 1974, he requested for consent about loan and was permitted by the Executive Council but was later reduced to only two billion US dollars at a meeting on 28th January of 1975.
