Economy under Mussolini

Question 1

how did economic policies increase Mussolini’s control over the population?

Answer 1

• industrialists happy to support Mussolini
• fascist syndicates
• corporate state (favored industrialists)
• was minister of corporations
• IMI and IRI
• state owned a larger percentage of industry than any other European country

Question 2

how did economic policies increase Mussolini’s prestige?

Answer 2

• 1922-29 claims credit for increasing company profits
• revaluing lire demonstrates will of Il Duce
• corporate state was essentially propaganda
• public work schemes e.g. road building
• press photographs of M helping with harvest

Question 3

how did economic policies fail to increase Mussolini’s prestige?

Answer 3

• increasing disillusionment

- May 1927 battle for births: marriage rates stagnated and birth rate declined

Question 4

how did economic policies improve the economy?

Answer 4

• early policies: increases trade and production
• -> reduced gov interference
• reduces gov spending and inflation
• depression: public work schemes. IRI and IMI
• battle for grain: wheat produciton increased by 50% in north and centre
• war industries do well

Question 5

how did economic policies fail to improve the economy?

Answer 5

• revaluation of the lire damaged exports and caused inflation
• depression: increase in welfare spending is a huge strain on gov finances
• battle for grain: southern agriculture (olives) suffered
• -> not self sufficient in fertilisers, so lower grain yield

Question 6

how did economic policies improve the lives of workers/farmers?

Answer 6

• corporate state: sick pay and national holidays
• -> disputes generally avoided
• increased welfare after depression
• educating farmers on new techniques and providing fertilizers

Question 7

how did economic policies fail to improve the lives of workers/farmers?

Answer 7

• early policies: vidoni pact (1925) fascist syndicates
• -> farmers unhappy with reduced tarriffs

-revaluation of the lire: unemployment trebled 1926-28

• corporate state: price cuts and rising wages
• -> real wages fell by over 10%

-paying 400 lire extra in late 1930s for food

Question 8

how was autarky achieved?

Answer 8

• agricultural products e.g. cereal and wool stockpiled
• -> supplies and prices are stable
• synthetic substitutes e.g. wool vs lanital
• produce more grain
• quotas on foreign goods are good for domestic goods

Question 9

how was autarky not achieved?

Answer 9

• industries like textiles were not prioritised and thus suffered
• gov spending on autarkic measures doubled 1934-38
• firms had to find new energy sources (could not import oil and gas)
• raw materials were scarce. produced less than 1/10 of the iron that Germany did