Economic Policies

Question 1

What economic policy did De’ Stefani follow?

Answer 1

• Little government intervention
• focused on reducing government spending in order to balance the budget

Question 2

How successful were De’ Stefani’s policies?

Answer 2

• partially successful
• manufacturing production increased
• agricultural groups were not happy about the reduction in tariffs

Question 3

When was De’ Stefani replaced? By who?

Answer 3

• July 1925
• Giuseppe Volpi

Question 4

How did the fascist economy transition?

Answer 4

• was now more regulated, state-run economy that had a greater personal influence from mussolini

Question 5

When was the ‘battle for lira’ launched?

Answer 5

August 1926

Question 6

In Dec 1927 what was the lira artificially fixed at?

Answer 6

• 19 to the American dollar
• 92.46 British pound

Question 7

What deflationary measures did the government have to put in place due to artificial fixing?

Answer 7

• massive price reductions
• cuts to workers wages

Question 8

What did the battle for the lira show?

Answer 8

economy was shifting towards a greater focus on the policies that would represent Mussolini’s power and strength and less on the actual economic needs of the people

Question 9

What was the ministry of corporations?

Answer 9

• Corporations: mixed union of workers and employers who would discuss and implement national economic planning
  = harmonious economic order

Question 10

What was the ‘charter of labour’? (1927)

Answer 10

Promised that these mixed corporations would organise Italy’s economy and guarantee workers’ rights in employment –> never followed through

Question 11

What was the law implemented in 1934? On paper vs reality

Answer 11

• mixed corporations representing 22 major economic sectors
• on paper: highly complex government system
• reality: propaganda
• they were essentially councils where the workers and employers met under the guidance of the PNF

Question 12

Who was the head of the national council of corporations and what did this mean?

Answer 12

Mussolini
- real power over economy was held by mussolini

Question 13

What was the point of the corporate state?

Answer 13

• provided jobs for the fascists
• excellent propaganda and was used to prove that mussolini had overcome the problems of class conflict and constructed a ‘third way’ between communism and capitalism that harmonised industrial relations
  –> essentially non sense

Question 14

How was employment and welfare carried out?

Answer 14

• employment was provided through large public works schemes such as road building, house construction
• welfare was increased to help those who could not find employment

Question 15

To help businesses survive the great depression what was put in place?

Answer 15

• worker’s wages cut by 12% in nov 1930
• encouraged price fixing
• cartelisation
• mergers - employment stayed stable as fewer businesses closed

Question 16

How did the government ensure banks were protected?

Answer 16

• IMI policy: provided credit to banks to guarantee they would not collapse
• IRI scheme: government bought up shares in banking, industry and commerce to help prop up the Italian economy and ensure that these companies did not go bankrupt
• IRI provided education on new management and techniques and gave financial and technical assistance to support the growth of these Italian industries

Question 17

How were IRI and IMI successful in maintaining public confidence in the economy?

Answer 17

• ## guaranteed financial support for both the banks and key employment industries

Question 18

What were the three factors that autarky driven by?

Answer 18

1. general decline in Italian overseas trade due to the overvalued lira and the Great Depression
2. 1936: sanctions placed on Italy in response to militaristic actions
3. the preparation for war

Question 19

Why was trade conducted in bilateral agreements?

Answer 19

• ensured the value of imports matched the level of exports

Question 20

What impact did the devaluing of the lira in oct 1936 have?

Answer 20

• boosted Italy’s economy

Question 21

How did the government use the IRI scheme in autarky?

Answer 21

• took over private firms if it was justified for the national defence, autarky
  these companies were made responsible for improving Italy’s economy self-sufficiency by finding sources of raw materials within Italy or colonies or produce synthetics as alternatives

Question 22

How much did the government spend on autarkic measures from 1934 to 1938?

Answer 22

• 1934: 30 billion lire
• 1938: 60 billion lire

Question 23

When was the battle for birth announced?

Answer 23

may 1927

Question 24

What was the aim of the battle of birth for the 1950s?

Answer 24

at least 60 million

Question 25

Why did the party think 40 million population wasn't enough and why they wanted a large one?

Answer 25

40 million was not a large population to compete with the larger populations of Germany and Russia - military strength could be boosted by a large population - it would create more competition for employment and this would keep wages low - increase the number of consumers

Question 26

How did the policy of battle for births link to Mussolini's aims of developing better relations with the Catholic Church?

Answer 26

- the ideal of Italian women focused on the family with the sole aim of giving birth fitted very closely with catholic values - Basilicata: had traditional values regarding women and had a high birth rate --> used as an example for the rest of Italy

Question 27

What motivations were put out to encourage the battle for births?

Answer 27

- tax reductions and loans were provided for families with a large number of children and prizes given by Mussolini - 1928: employed men were given tax concessions if they had seven children or more - bachelor's tax ensured that single men took on more of an financial burden than married men - fathers of larger families were given better career opportunities with promotions and employment

Question 28

When was the battle for grain announced?

Answer 28

1925

Question 29

How was a propaganda campaign used to increase grain production?

Answer 29

- it was launched the free Italy from the 'slavery of foreign bread' - annual wheat growing competitions - famers were subsidised by government grants to increase control - fascists educated growers on new farming techniques and providing fertilisers, farm machinery

Question 30

By what percentage did grain production increase?

Answer 30

50%

Question 31

What was the policy of 'ruralism'?

Answer 31

- mussolini exalted the traditional values of Italy's rural population in contrast to the decadent and corrupt pleasure-seeking lifestyle found in the city

Question 32

What was the 'empty the city' campaign? 1928

Answer 32

- prevented the internal migration from the rural areas to the cities - encouraged peasants to stay by launching reclamation and improvement scheme was launched

Question 33

What percentage did the welfare spending increase from during the Great Depression? What was done to deal with this problem?

Answer 33

- from 6.9% to 20.6% - taxes were raised and a 'forced loan' of five percent on the value of housing had to be paid

Question 34

What was wrong with IRI?

Answer 34

- restricted invocation and rationalisation of the economy and kept prices high

Question 35

What was the problem with autarky?

Answer 35

- it was an impossible goal for a country that lacked raw materials and had to import coal and oil - products that were being produced would have been cheaper to buy from overseas companies

Question 36

What was the problem with the battle for grain?

Answer 36

- farmers in the south removed their olive trees, citrus fruits and vineyards to make more land for wheat growing - major export industries that now Spain took over

Question 37

Why was the battle for births a failure?

Answer 37

- By the 1930s fascist Italy had the highest proportion of married females in employment than any other European country - government tried to discourage women from working by lowering their wages but this only encourage employers to hire them - Italy's birth rate continued to decline and marriage rate fell