The study of education systems and educational programs cannot be adequate without reference to those systems' social context. This paper examines the Australian Transition Education program, enacted by the government in 1979, in light of its social context. The program's ostensible purpose was to prepare students for employment. The Liberal government came to office in 1975 on the grounds of superior economic management. In 1979, the party was faced with evidence suggesting a worsening economic crisis. For the 15- to 19-year-old age group, unemployment had surged from 3.4 percent in 1964 to 17 percent in 1979. Government reacted with "dole-bludger" rhetoric that young people chose unemployment--a claim echoed by the media. The situation displayed the crisis tendencies of advanced capitalism discussed by Habermas (1976). Government diverted attention away from itself and toward the education system as a scapegoat, which created a motivation crisis among young people. Because unemployment could no longer be "hidden," a legitimation crisis arose in society. The Transition Education Program appeared in this crisis context, primarily designed to restore confidence in government by relegitimizing the education system. (CJH)