Mussolini and the Economy Pt 2 Flashcards
How did Italy’s unemployment rise after the Great Depression?
1928 - 300,000
1933 - 1 million
How did Government spending increase after the Great Depression?
- 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
What was Cartelisation and how did it help Italy in the Great Depression?
- This encouraged the growth of big conglomerate economic enterprises (cartels) through mergers and takeovers to remove competition
- This was made compulsory in 1936
Where were the bigger Cartels and how useful were these?
- 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
How did Mussolini use the Great Depression to fuel his propaganda?
- 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
Give examples of Mussolini’s Ocean Liners and their significance
- SS Rex August 1931 was the biggest Italian Ocean Liner until 1991
- SS Conte di Savoia was an Ocean Liner built in October 1931
How did Italy cope with bankruptcy?
- 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
How much control of companies did the Italian Government have during the Great Depression?
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
What was Autarky?
- A self sufficient closed economic system which reduces its dependance on other countries and limits trade
Why did Mussolini want Autarky for Italy?
- 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
When was the policy for Autarky announced?
- 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’
What substitutes were made under Autarky?
- 1935, Lanital as a substitute for Wool
- Rayon as a sub for Cotton
What were Mussolini’s import goals, why were these unrealistic?
- He wanted to import less coal, oil and iron ore
- Domestic production would only meet 1/5th of Italy’s needs however
How would Government intervene?
- Government took full control of some companies, mostly in Steel, Chemicals and Armaments industry
- This pushed up the cost of imported goods
What were wage cuts like, and how did the Gov attempt to deal with this?
- 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