Economic Policy Flashcards
What European event did Mussolini take credit for in the 1920s?
The European Economic Boom
What kind of economics did De’Stanfai favour?
Laissez-faire economics with little government influence (so he reduced goverenment spending).
What was there in 1921-4?
An improvement in manufacturing which lead to a budget surplus.
Who replaced De’Stanfai in 1925 because of inflation and the reduction in tariffs?
Count Volpi
What did the Corporate State aim to do?
Find a middle way between communism and capitalism
What law did the Corporate State develop from?
Rocco Law - gave workers rights to arbitration courts but banned strikes.
What were corporations?
Places where employers and worker could discuss policy changes and improvements.
When was the Ministry of Corporations set up?
1926
When was the Nation Council of Corportations set up? How many representatives from areas of the economy made it up?
1930, representatives of 22 key areas of the economy.
What did the Charter of Labour (1927) outline corportions as?
Organs of the state which would represent industry.
What increased after the creation of the National Council of Corporations?
Number of cartels
When did the government pass a law allowing them to mandate cartelisation?
1932
When was the Institue of Industrial Reconstruction set up? When was it made permenant?
1933, permenant in 1937
What did the Institute of Industrial Reconstruction do to respond to the Great Depression?
Bought shares owned by banks and reorganised companies to maintain production.
What did the government do to respond to the Great Depression?
They increased public works and reduced the working day to reduce unemployment. The IMI reorganised banks. Set up the IIR.
What did the policy on ruralisation (1927 onwards) entail?
Land reclamation and improvement, encouraging agricultural production.
What did the 1928 campaign ‘Empty the Cities’ seek to do?
Prevent rural migration to cities.
What did the scheme ‘bonifica intergrale’ involve?
Projects like road and house building, irrigation, and marsh drainage.
In what ways was ruralisation successful?
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.
In what ways was the policy of ruralisation unsuccessful?
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.
When was the Battle for Grain launched and what were its aims?
1925, to increase cereal production, reduce the trade deficit and ‘free Italy from the slavery of foreign bread’. Autarky.
What did the government do in the Battle for Grain?
Impose high tarriffs on foreign grain, draining land to make farm land and providing incentives for farmers to buy fertilisers and machinery.
In what ways was the Battle for Grain successful?
Wheat imports fell by 75%, Italy was almost self-sufficient in cereals by 1940.
In what ways was the Battle for Grain not successful?
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.
