1922-40 Economy Flashcards
What were Mussolini’s aims for his economic policy?
- Securing himself in power - increase control/prestige
- Transforming Italy into a strong military power
- Improve the overall economic situation to make Italy appear stronger
What was the lesser aim of Mussolini’s foreign policy?
Improve the lives and living standards of the people of Italy
What was Mussolini’s key economic priority in the early years?
To get the powerful industrial elite on his side
What economic measures in the early years of power did Mussolini introduce that improved his control in Italy?
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.
What evidence is there that the economy in Italy improved in the early years of Mussolini’s rule?
- 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
How did the early economic policies improve the lives of the Italian people?
- 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
When was the ‘Battle for Lira’?
Started August 1926, revalued December 1927
What did the battle for lira involve?
- 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
How did the revaluation of the lira benefit Mussolini’s control and prestige?
- 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
What were the effects of the revaluation of the lira?
- Unemployment trebled between 1926 and 1928
* Crippled Italian exports as Italian products were nearly twice as expensive as other foreign goods
Describe the purpose of The Corporate State
It intended to solve the social/class conflict within the workplace
What 3 laws/actions created The Corporate State?
- April 1926 Rocco Law
- July 1926 Establishment of the Ministry of Corporations
- 1927 Charter of Labour
What did each law or action do to create The Corporate State?
- 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
How did The Corporate State improve Mussolini’s control and prestige?
- 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
How did The Corporate State help workers?
It didn’t. Apart from the introduction of sick pay and paid national holidays introduced in 1938 the workers gained nothing