1922-40 Economy Flashcards

1
Q

What were Mussolini’s aims for his economic policy?

A
  • Securing himself in power - increase control/prestige
  • Transforming Italy into a strong military power
  • Improve the overall economic situation to make Italy appear stronger
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2
Q

What was the lesser aim of Mussolini’s foreign policy?

A

Improve the lives and living standards of the people of Italy

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3
Q

What was Mussolini’s key economic priority in the early years?

A

To get the powerful industrial elite on his side

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4
Q

What economic measures in the early years of power did Mussolini introduce that improved his control in Italy?

A

1925 - The Vidoni Pact outlawed trade unions and said fascist syndicates were the only body that could represent Italian workers. Made industrialist happy as workers couldn’t strike.

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5
Q

What evidence is there that the economy in Italy improved in the early years of Mussolini’s rule?

A
  • By 1924/25 the economy was running a budget surplus
  • Exports of cars, textiles and agricultural products doubled between 1922 and 1925
  • Government debt fell from 74.8% to 50.6% of GDP between 1922 and 1925
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6
Q

How did the early economic policies improve the lives of the Italian people?

A
  • The minister of finance De’Stefani focused on reducing government spending and reducing inflation
  • Exports doubling meant workers kept jobs and businesses kept good income
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7
Q

When was the ‘Battle for Lira’?

A

Started August 1926, revalued December 1927

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8
Q

What did the battle for lira involve?

A
  • The Lira had sunk to value 150 to the British pound

* December 1927 the lira was fixed at 92.46 to the pound, 19 to the dollar

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9
Q

How did the revaluation of the lira benefit Mussolini’s control and prestige?

A
  • Purely for propaganda
  • Designed to make the Italian economy appear strong
  • Demonstrated for the first time Mussolini was more concerned about prestige than improving people’s lives
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10
Q

What were the effects of the revaluation of the lira?

A
  • Unemployment trebled between 1926 and 1928

* Crippled Italian exports as Italian products were nearly twice as expensive as other foreign goods

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11
Q

Describe the purpose of The Corporate State

A

It intended to solve the social/class conflict within the workplace

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12
Q

What 3 laws/actions created The Corporate State?

A
  • April 1926 Rocco Law
  • July 1926 Establishment of the Ministry of Corporations
  • 1927 Charter of Labour
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13
Q

What did each law or action do to create The Corporate State?

A
  • Rocco Law - allowed (fascist) syndicates to represent workers
  • Ministry of Corporations set up to be a mixed union of workers and employers to negotiate economic policies to suit both groups
  • The Charter of Labour guaranteed workers’ rights in employment, social insurance and welfare
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14
Q

How did The Corporate State improve Mussolini’s control and prestige?

A
  • The system was propaganda - made him look like he had come up with a new economic system. Also favoured industrials who therefore continued to support Mussolini
  • All plans had to be approved Central Corporative Committee which Mussolini headed
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15
Q

How did The Corporate State help workers?

A

It didn’t. Apart from the introduction of sick pay and paid national holidays introduced in 1938 the workers gained nothing

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16
Q

Did The Corporate State help the economy?

A

Partially. meant damaging industrial disputes were generally avoided and combined with state control the effects of the depression weren’t too bad

17
Q

What was the Italian economy like during the Great Depression?

A

Not too bad, policies were quite successful in the earlier years so the impact on Italy wasn’s as dramatic as on other nations

18
Q

How did Mussolini’s policies during the depression help his prestige and control in Italy?

A

The relatively good control of the economic situation meant that Mussolini was seen to be running Italy well

19
Q

What economic policies were passed during the Depression?

A
  • Large public work schemes such as road/house building kept employment levels stable
  • The IRI (Istituto di Ricostruzione) bought up shares in banking and industry to prevent bankruptcy. Govt. owned larger % of industry than any other country apart from the USSR
  • Welfare spending went from 6.9% to 20.6% between 1930 and 1940, putting a huge strain on government finances
  • The IMI (Instituto Mobilare Italiano) ensured major banks did not collapse after loaning out milions to businesses
20
Q

How did the government try to generate autarky in Italy from 1934 onwards?

A
  • Agricultural products such as cereals and wool were stockpiled to keep supply and prices stable
  • Government spending on autarkic measures doubled from 30 billion to 60 billion lire between 1934 and 1938
21
Q

What is evidence of the failure to achieve autarky in Italy?

A
  • Lat 1930s Italy produced 1.8 million tonnes of iron ore annually which was less than 1/10 of what Germany was producing at the same time
  • Goods that were produced at home could have been bought abroad for cheaper
22
Q

Why was the battle of the births linked with the Italian economy?

A
  • started 1927, wanted to increase the population from 40 to 60 million in order to strengthen Italy militarily and economically stronger
  • Financial incentive of married men with 6+ children not having to pay tax introduced
23
Q

What happened with the battle of the births?

A

Marriage rates stagnated, birth rate in late 1930s was 102 births per 1000 people compared to that of 147 to 1000 in 1911

24
Q

What was the battle for grain part of?

A

The attempts to create autarky

25
Q

What did the government do in the battle for grain?

A

Invested in educating farmers of new techniques and providing fertilisers

26
Q

Give evidence of the battle for grain being a success

A
  • Northern/Central Italy’s wheat production increased by 50% between 1914-1938
  • Imports of grain reduced
27
Q

Give evidence of the battle for the grain being a failure

A
  • South stopped growing olives and fruit and cattle farming, greatly damaging these industries and exports
  • By late 1930s, families were paying around 400 lire extra in food costs compared to in the 1920s
28
Q

Describe the ruralisation policy introduced in May 1927

A

The attempt by the government to try to keep rural population, rural traditions as well as increase birth rate (battle for births).

29
Q

Was ruralisation effective?

A

No - only 5% of the 475 million hectares of land that was reclaimed was used improved and used by farmers but draining southern marshes decreased malaria by 50%

30
Q

What happened to GDP between 1922 and 1938?

A

It rose at an average of 1.9% a year (which is good as it shows economic improvement), compared to 2.8% between 1903-1911 (which shows that growth slowed under the fascists)

31
Q

Give evidence of the Italian economy being effective during the war

A
  • Protectionist policies and low taxes stimulated f=growth in the North
  • The deficit fell from 75% to 50% in 1932
32
Q

Give evidence of the Italian economy being ineffective during the war

A
  • Never put more than 25% of GDP towards was production compared to Germany’s 64%
  • Italy was dependant on Germany for fuel and could only import 50% when its needs were significantly higher
  • Steel production decreased from 2.3 million tonnes to 1.7 million
  • Rations only allowed for 1000 calories in 1941
  • The Soviet Union industry was 900% bigger than Italy’s by 1939