Mussolini's economic policy Flashcards
How did Mussolini improve the economy in the early 1920s?
Government debt fell from 74.8% of GDP in 1922 to 50.6% of GDP in 11925
How did Mussolini’s early economic policy improve the performance of businesses?
Exports of cars, textiles and agricultural products doubled between 1922 and 1925
How was the overall economy in 1925?
Italy ran a budget surplus in 1924 and 1925
Why did Mussolini want to revalue the Lira?
It had fallen in value compared to the British pound and it had sunk further to 150 lira to 1 pound and after 1927 the lira was set at a fixed rate at 19 to the American dollar and 92.46 to the British pound
what was the flaw behind the revaluation of the lira?
It was purely for propaganda purposes making the Italian economy appear stronger and also demonstrated the will of Il Duce and his power to uphold italian economic pride
How did the revaluation theoretically help trade but in reality not?
The revaluation should have helped the Italian consumer because imports of foods and other products should have become cheaper however Mussolini mitigated this by placing high tariffs on imports
How did the revaluation effect exports?
It crippled Italian exports as it meant foreign buyers found Italian products were much more expensive (up to 2x more expensive) and overvalued
What was the Rocco law?
It allowed the syndicates some rights to represent views/concerns however strikes were banned
When was the Ministry of Corporations set up?
July 1926
What was the Ministry of Corporations?
The corporations were set up to be alternative mixed union of workers and employers who would discuss and implement national economic planning that met both their interests.
What was the aim of the Ministry of Corporations?
The aim was for employees and employers to work together more efficiently harmoniously and productively for the good of the nation
What was the charter of labour 1927?
It was drawn up to guarantee workers rights in employment, social insurance and welfare.
Why was the Charter ineffective?
It was simply a programme and was never actually carried out
What were the limits to the Ministry of Corporations?
In reality, the system was propaganda. While the corporations allowed employers and workers to meet under the PNF, only employers were represented. Employees were represented by fascists officials selected by Mussolini
How did the system allow for corruption?
Mock factories were created in order to secure subsidies
How was the Ministry of Corporations limited?
It was headed by Mussolini who alone decided what became law. This meant that Mussolini held the majority of the power over the economy and was able to manipulate legislation in his favour
How has it been debunked that the corporate state transformed the economy?
Historians now dismiss claims that the corporate state transformed the economy and industrial relations. Conflict between employer and employee were not solved, only suppressed. Blinkhorn argued that ‘Corporativism in practice involved the thinly disguised exploitation and oppression of labour’
How did Mussolini attempt to keep employment stable after the Depression?
Large public works schemes such as road building and house construction
How did the government protect banks?
The government ensured that major banks that had loaned millions of lire to Italian businesses were protected from possible collapse through Instituto Mobiliare Italianao (IMI). This helped the Italian companies survive the depression and industrial development was considerable in comparison to when the Fascists had taken power in 1922.
