How Big A Part Did The State Play In The Economy Flashcards
BM’s claim of leading a totalitarian state would imply
The govt had full control of all aspects of the state, including the economy
Why was BM cautious of interfering in the economy?
didnt want to challenge the position of industrialists.
BM and industrialists
Their freedom of economic activity was somewhat restricted, but their ownership of successful businesses was NOT challenged.
The IRI marked a major extension of the state in the economy, but?
only intervened to help industries that were in trouble
the impact of the GD meant that by the late 30s, the state, via the IRI, controlled a higher proportion of industry in any other country bar USSR.
The CS might appear to be a big state intervention but in practice?
Its effect on the organisation of industry was SMALL.
With the banning of Socialist TUs, and the weakening of the F TUs, employers gained increased control over workforce, contravening the official view that the CS balanced the interests of employers and employees.
Why did the govt increasingly intervene to favour industries supplying military needs?
from 1935 the country was virtually permanently at war.
What effect did govt’s favouring military industries have on the economy?
It further distorted the economy, as well as increasing the budget deficit:
1934= 2B
1939= 28B
DESPITE INCREASED TAXATION
How much did the budget deficit rise?
1934= 2B
1939= 28B
DESPITE INCREASED TAXATION
Why did the budget deficit rise?
Mainly caused by increased expenditure on the military?
What did these trends do the commitment of the elite to the regime?
WEAKENED
Writing was on the wall when an increased no. of businessmen began to transfer funds to Swiss bank accounts
