3. Economic policies 1925–40 Flashcards
Battle for Lira - Policies
In December 1927, the lira was artificially fixed at 19 to the American dollar and 90 to the British pound sterling
Mussolini inflated the value of the Lira making exports more expensive
Battle for Lira - Evaluation
valuation of the Lira was too high and the government was forced to introduce a range of deflationary measures including cuts to workers’ wages
Unemployment trebled in the years 1926-28 as many businesses could no longer sell their goods, e.g exports of textiles
Corporate state - Policies
The ‘Charter of Labour’ drawn up in 1927 promised these mixed corporations would organise Italy’s economy and guarantee workers’ rights
Sick pay and paid National holidays were negotiated in 1938
Facist representatives sided with the employer over salaries and working conditions
Anti-strike law of 1926 banned traditional trade unions and strikes
Corporate state - Evaluation
propaganda to prove mussolini had overcome the problems of class conflict and constructed a ‘third way’ between capitalism and commnsm
Businesses ignored the regulations produced
No dramatic effect on the economy so effectively useless
From 1925-38 that Italian workers real wages fell by 10%
Response to the Depression - Policies
cut workers’ wages by 12% and encouraged price fixing and catelisation (large businesses take over smaller to reduce competition and stop them closing) - stablised employment levels
Government funding of road building doubled between 1929 and 1933 - provided employment
IRI scheme: government bought shares and lent money to industries to ensure they didnt go bankrupt and could grow until shares could be brought back
Response to the Depression - Evaluation
Government intercention was succesfful in maintain public confidence in the economy and sustained italy through the Great depression
Italy protected employment/industry in a more successful way than rest of europe
‘forced loan’ of 5% on the value of housing had to be paid to deal with this increased welfare spending
Autarky - Policies
Government spending on autarkic measure and heavy industry doubled from 30 billion lire in 1924 to 60 billon by 1938
Armaments industry promoted through expansion of state ownership by 1935: 80% of shipbuilding and 50% of steel was under government control.
Involved production of substitutes for products not made domestically e.g. lanital instead of wool
Wheat imports cut by ‘Battle for Grain’
Battle for Grain - Policies
1925 - Annual wheat growing competitions were held and farmers were subsidised by government grants to increase wheat and cereal production
Battle for Grain - Evaluation
wheat production rose from 5.4 million tonnes to 7.3 million between 1925 and 1935
Government incentives meant farmers in the south removed their olive trees, citrus fruits and vineyards to make more land available - previous major export industries for Italy
Other items relied on imports so prices rose - families had to pay an extra 400 lire per year in food costs
Mussolini claimed success of grain production - photographed harvesting and farming along-side smiling peasants.
Battle for Births - Policies
encouraged to increase population to 60 million by 1950
Discourage women from working by lowering their wages in 1928
Married men given tax concessions, better career opportunities with promotions and employment in government jobs
Battle for Births - Evaluation
By 1936, women made 33% of the workforce - declined by 3% since 1927
Little success - Italy’s birth rate continued to decline and the marriage rate fell
Cuts in men’s wages during the depression meant many women had to work to provide for their families
Battle for Land - Policies
1927
Bonifica integrale (land reclamation and improvement scheme) introduced to encourage peasants to stay in rural areas - marsh drawing project’s were carried out provide more arable land for italy’s peasantry
The government claimed this would be carried out on around 474 million hectares and provide land for Italy’s peasant farmers
Battle for Land - Evaluation
Only 10,000 peasants given land + Real wages for farmers fell by more than 50% from 1926-34
Only successful in areas were marsh draining was required such as the Pontine Marshes where it had turned to successful farming area
The draining of the marshed reduced malaria by 50% and provided considerable employment during the depression
It was barely attempted in the south where more interest irrigation and complex work was required
Autarky - Evaluation
distorted focus on autarky and war material at the expense of consumer goods meant wages fell below the cost of libing
Living standards fell compared to 1920s
