Italy booklet 6 - Fascist economy Flashcards
What were the PNF’s first policies based around
1919- high taxes, support the poor- redistribute the wealth and free education
1921- New Program- less radical meaning more supported- lower taxes, lower social policies fits with industrial elite support from the north
Alberto de Stefani policies and consequences
Tax cuts No taxes on war profits Budget surplus implementation Pro business policies Reduce govt intervention stimulate investment reduce public spending
consequences: exports on textiles, cars increased
inflation of lira due to industrial boom
lira decreases in value
good for fascist support base
Battle of the lira
Revalues the lira from 150 lira/£1 to 90 lira/£1
Taxes on imports
regulates industrial relations
= imports are cheaper
wages fell, living standards declined
textile industry falls
lira status restored
All together: imports cheaper for raw resources like steel, helps the economy to grow
Mussolini raised his prestige by restoring the lira’s value making him look like a strong leader
Mussolini Pesaro Speech
what year and what he says
1926 - fight for the lira speech
Liking Italy and lira together, saving currency= saving Italy
The corporate State
1925-`1926
Worker and employer would cooperate= maximize production
Terms: 1) a system of labor relations and organisations
2) all of fascist economic and social policies together
Solved issues: worker employer disputes
disputes regarding pay and work
need to improve production
Palazzo Vidoni Pact
1925 Agreement signed by the confinustria and Fascist trade union federation Weakened other unions Good for industrialist 1926- Anti strike law
Ministry of Corporations
1926
Purpose was to organize conciliation of deputies like wages etc
Used as fascist propaganda
Not significant in decision making for the Italian economy
Trade Unions
1927
Bottai head of Ministry of corporations saw Rossini as a threat
Bottai supported Labour charter
Resulted in Rossini confederation split into 6 smaller federations= his supporters removed from key positions
Overall: Trade unions became part of the PNF
Rossini’s position weakened
Overall success of corporate stae, palazoo vidoni pact, ministry of coporations, trad uniions
Corporate state was ineffective with only one corporation
Many industrialist ignored corporation regulations
Used more as a propaganda tool for the fascists
+caths said corp was implementing catholic social teachings
+fascism looked strong the the world
So: corp state had no result in economic revolution but was great propaganda
Corporate state successes and failures
Success: workers paid national holidays in 1938
industrialists anti strike law 1926, employers could change work hours and conditions without approval, not compulsory to follow corporation guidelines
Fascists - trade unions lost power, great propaganda, anti strike law consolidated power
Failures: workers- trade unions lost power
anti strike law
employers could change conditions and working hours
industrialist- confidustria was an official group
Fascists- infighting
corporate state failed
responses to the great depression
Effect on Italy- drops by 35% on stocks and shares and 14% for manufacturing, balance of payments in a deficit
Banks struggling- IMI set up to loan money to banks
IRI used to buy worthless shares to keep businesses running
state owned banking
Business: long term lending money
1932 law passes making cartels/consortia membership mandatory when enough businesses wanted to join+_ keeps prices high and limited competition
Lira- 1934 IFE established to regulate currency trading to maintain lira value
Unemployment- had increased from 300 000 to 1 million
Increased spending in public work schemes
money spent on social welfare
Autarky
Why? to increase the prestige of Italy
Policies: increased controls on currency, quotas on foreign imports to make domestic goods more favourable, new energy sous
Mainly bad as on ly had 1/5 of required coal iron oil. Prices increased, living standards fell, industry fell in textiles
Limited success like greater investment on industrial development
The Battle of Births
1927
Tried to increase Italian population from 40 mil to 60 mil by 1950.
Rewarded married men with 6 kids with no tax
punished with high tax for those without kids and less women in work
Didn’t work as marriage rate did not change.
Battle of Grain
Italy become self sufficient in terms of grain production
Policies: high goals set, high tariffs on foreign imports, fascist provided grants to farmers
Success: 50% rise in wheat production
Failures: live stock numbers fell, inefficient farms continued to work due to govt aid, Italy not self sufficient in fertilisers, export crops like olives and grapes did not see same progress as wheat
Battle of Land
Ruralise Italy and to stop people rushing to towns for work
Policies: Mussolini Law 1928- promised money towards land reclamation
Success: places like Pontine marshes in Rome saw reduced unemployment, health benefits, stopped malaria crisis, irrigated and drained land
Failures: For most, land promised was not given, 4.75 million hectares unfounded, 4 bill lira spent to consortia, still poor housing, no attempt to reform land ownership, 50% of workers wages fell
