Mussolini and the Economy Pt 2 Flashcards

1
Q

How did Italy’s unemployment rise after the Great Depression?

A

1928 - 300,000

1933 - 1 million

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2
Q

How did Government spending increase after the Great Depression?

A
  • Due to wages falling the Gov spent more (4x)
  • 6.9% of Gov income in 1930 spent was 1.5 billion lire
  • 1940 this increased to 27.6% spent meaning 6.7 billion lire
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3
Q

What was Cartelisation and how did it help Italy in the Great Depression?

A
  • This encouraged the growth of big conglomerate economic enterprises (cartels) through mergers and takeovers to remove competition
  • This was made compulsory in 1936
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4
Q

Where were the bigger Cartels and how useful were these?

A
  • Bigger in the North, the industrial triangle of Milan, Turin, Genoa benefitted heavily
  • Deemed useful to the Italian Economy
  • Smaller firms and companies in the south were overlooked and shut down
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5
Q

How did Mussolini use the Great Depression to fuel his propaganda?

A
  • He use transport for Propoganda
  • he “made the trains run on time”
  • Developments of ocean liners showed boost in developments of shipping and boosted morale
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6
Q

Give examples of Mussolini’s Ocean Liners and their significance

A
  • SS Rex August 1931 was the biggest Italian Ocean Liner until 1991
  • SS Conte di Savoia was an Ocean Liner built in October 1931
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7
Q

How did Italy cope with bankruptcy?

A
  • Made 3 institutions funded by the Italian Treasury
  • IMI and the IRI
  • Issued banks 5 and a half billion Lire to be repaid within 10 years (IMI)
  • Lent money to companies that needed saving, e.g Ansaldo (IRI)
  • IRI also took control of bank-owned companies
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8
Q

How much control of companies did the Italian Government have during the Great Depression?

A

By 1939

  • Owned 80% of shipbuilding and 75% of pig iron productions
  • Italy owned 20% of industry, more than any other European country, slightly behind the USSR
  • Italy had coped better than others
  • Mussolini believed Roosevelts ‘New Deal’ was Americas method to battle unemployment
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9
Q

What was Autarky?

A
  • A self sufficient closed economic system which reduces its dependance on other countries and limits trade
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10
Q

Why did Mussolini want Autarky for Italy?

A
  • He wanted to lessen the Balance of Payments (had achieved a Balanced Budget in 1925)
  • He wanted to assert Italy as independent and a world power
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11
Q

When was the policy for Autarky announced?

A
  • Formally announced in 1936
  • High Commission of Autarky created in 1937
  • The battles heavily were driving towards this anyways, NOTE this is just the ‘formal’ beginning’
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12
Q

What substitutes were made under Autarky?

A
  • 1935, Lanital as a substitute for Wool

- Rayon as a sub for Cotton

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13
Q

What were Mussolini’s import goals, why were these unrealistic?

A
  • He wanted to import less coal, oil and iron ore

- Domestic production would only meet 1/5th of Italy’s needs however

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14
Q

How would Government intervene?

A
  • Government took full control of some companies, mostly in Steel, Chemicals and Armaments industry
  • This pushed up the cost of imported goods
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15
Q

What were wage cuts like, and how did the Gov attempt to deal with this?

A
  • Real wages of Italian workers fell by 10% between 1925 and 38
  • Ministry for Corporations and Dopolovaro were organisations that employed large numbers of the middle class who’s cuts were less severe than Industrial Workers
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16
Q

What made Autarky more desirable? How did Mussolini contribute to this?

A
  • October 1936 the Lira was devalued and this made Autarky more desirable, less reliance on imports
  • M was prepared to lower living standards to avoid spending cuts and tax increases due to spending on Gov contracts
17
Q

How would Italy do when they joined WW2?

A
  • In 1940 she was unable to match enemies level of production and repair losses in shipping and aircraft
18
Q

Did Autarky work overall?

A
  • Unrealistic as they could not produce in key areas, coal, oil and raw materials
  • Opposite direction to the regimes goal of ‘ruralisation’
  • Italy were still dependant on imports for basic needs (food) and its lack of foreign currency meant it was unable to get raw materials for military needs
19
Q

By how much was workers wages cut in November 1930?

A

12 Percent

20
Q

How was road building improved and how were railways electrified?

A
  • Road building doubled between 1929 and 33

- 5,000Km of railway was electrified

21
Q

How did Government spending on autarkic measures and heavy industry change?

A
  • Doubled from 30 billion Lire in 1934 to 60billion Lire in 1938
22
Q

How did Italy’s budget deficit grow during the depression?

A
  • Caused by increased welfare spending

- Local tax receipts spent on welfare increased from 6.9% to 20.6%

23
Q

How much did wheat production increase in tonnes?

A
  • 5.39 million tonnes to 7.27 million between 1925 and 35
24
Q

What was the Lira’s value fixed to in 1927?

A
  • 19 Lira to the American Dollar

- 92.46 Lira to the British Pound