Economic Policy

Question 1

What European event did Mussolini take credit for in the 1920s?

Answer 1

The European Economic Boom

Question 2

What kind of economics did De’Stanfai favour?

Answer 2

Laissez-faire economics with little government influence (so he reduced goverenment spending).

Question 3

What was there in 1921-4?

Answer 3

An improvement in manufacturing which lead to a budget surplus.

Question 4

Who replaced De’Stanfai in 1925 because of inflation and the reduction in tariffs?

Answer 4

Count Volpi

Question 5

What did the Corporate State aim to do?

Answer 5

Find a middle way between communism and capitalism

Question 6

What law did the Corporate State develop from?

Answer 6

Rocco Law - gave workers rights to arbitration courts but banned strikes.

Question 7

What were corporations?

Answer 7

Places where employers and worker could discuss policy changes and improvements.

Question 8

When was the Ministry of Corporations set up?

Answer 8

1926

Question 9

When was the Nation Council of Corportations set up? How many representatives from areas of the economy made it up?

Answer 9

1930, representatives of 22 key areas of the economy.

Question 10

What did the Charter of Labour (1927) outline corportions as?

Answer 10

Organs of the state which would represent industry.

Question 11

What increased after the creation of the National Council of Corporations?

Answer 11

Number of cartels

Question 12

When did the government pass a law allowing them to mandate cartelisation?

Answer 12

1932

Question 13

When was the Institue of Industrial Reconstruction set up? When was it made permenant?

Answer 13

1933, permenant in 1937

Question 14

What did the Institute of Industrial Reconstruction do to respond to the Great Depression?

Answer 14

Bought shares owned by banks and reorganised companies to maintain production.

Question 15

What did the government do to respond to the Great Depression?

Answer 15

They increased public works and reduced the working day to reduce unemployment. The IMI reorganised banks. Set up the IIR.

Question 16

What did the policy on ruralisation (1927 onwards) entail?

Answer 16

Land reclamation and improvement, encouraging agricultural production.

Question 17

What did the 1928 campaign ‘Empty the Cities’ seek to do?

Answer 17

Prevent rural migration to cities.

Question 18

What did the scheme ‘bonifica intergrale’ involve?

Answer 18

Projects like road and house building, irrigation, and marsh drainage.

Question 19

In what ways was ruralisation successful?

Answer 19

Imports were reduced and agricultural production rose from 5.3 million to 7.27 million. The Pontine Marshes were drained to create farm land. It was a propaganda success - shown on newsreels and speeches.

Question 20

In what ways was the policy of ruralisation unsuccessful?

Answer 20

It was expensive and Italy’s deficit grew so taxes increased and wages fell below the cost of living. Grain prices rose due to lack of competition.

Question 21

When was the Battle for Grain launched and what were its aims?

Answer 21

1925, to increase cereal production, reduce the trade deficit and ‘free Italy from the slavery of foreign bread’. Autarky.

Question 22

What did the government do in the Battle for Grain?

Answer 22

Impose high tarriffs on foreign grain, draining land to make farm land and providing incentives for farmers to buy fertilisers and machinery.

Question 23

In what ways was the Battle for Grain successful?

Answer 23

Wheat imports fell by 75%, Italy was almost self-sufficient in cereals by 1940.

Question 24

In what ways was the Battle for Grain not successful?

Answer 24

Olive and wine production fell so the quality of Italian diets fell. The cost of grain and bread increased and imports of meat and eggs increased. Restrictions of fertilisers meant that cereal production fell during the war.

Question 25

When did the Battle for Land/Marshes begin and what was its aim?

Answer 25

1928, it aimed to clear marshland to make it arable and reduce risks of malaria.

Question 26

What did the Battle for Land/Marshes entail?

Answer 26

Draining marshes to make farming land. Short-term and day contracts were banned which encouraged long-term agricultural employment.

Question 27

In what ways was the Battle for Land/Marshes a successful?

Answer 27

Malaria reduced by 50%, thousands of new jobs were created in new towns in rural areas, 80,000 hectares of land were reclaimed, and the Potine Marshes were drained.

Question 28

In what ways was the Battle for Land/Marshes not successful?

Answer 28

The land reclaimed only 1/20th of the land the propaganda claimed had been reclaimed.

Question 29

When was the Battle for Births launched and what did it aim to do?

Answer 29

1927, aimed to increase the birth rate so that the population would reach 60 million by 1950.

Question 30

Why did Mussolini want a large population?

Answer 30

A larger workforce would help achieve autarky and keep wages low, large consumer demand would support production and keep costs low.

Question 31

What laws were intoduced as part of the Battle for Births?

Answer 31

Tax reductions for large families (6+ children = no tax), medals for mothers who had lots of children, a Bachelor tax to encourage marriage, birth control was banned, and women’s wages were lowered in 1927 to discourage them from working.

Question 32

Who did the Battle for Births appease?

Answer 32

Catholic Church

Question 33

What were popular policies introduced under the Battle for Births?

Answer 33

Improved health provision for women and children, 2 months paid maternity leave, the OMNI (National Organisation for the Protection of Maternity and Infancy) also provided support to unmarried mothers which decreased the number of children being abandonned and dying in poor conditions.

Question 34

In what ways was the Battle for Births a failure?

Answer 34

The population was 47.5 million by 1950 and the birth and marriage rate actually decreased. By the 1930s Italy had the highest proportion of working married women in Europe as the lower wages attracted employers.

Question 35

What did the Battle for Lira aim to do?

Answer 35

Reduce inflation and create economic stability.

Question 36

What did the Battle for lira entail?

Answer 36

Banks instituted tight controls on money supply, the lira returned to gold standard in 1927 and the exchange rate was fixed. Tarriffs were introduced on foreign goods to protect Italian products and the lira.

Question 37

In what ways was the Battle for Lira beneficial?

Answer 37

After the re-evaluation of the lira, imports became cheaper so import industries benefitted.

Question 38

How was the Battle for the Lira a failure?

Answer 38

Wages had to be cut by 20%, it caused serious deflation and the government had to devaluated the lira in 1936.