The Fascist Economy Flashcards
1
Q
Early economic policies
- What was it based around
- Why did this change after 1925
A
Early economic policies
- Laissez Faire and Non Interventionist economics
- Mussolini wanted to transform Italy’s economy
2
Q
De Stefani’s Policies (1922-25)
- Reduced govt intervention
- Stimulating investment
- Public spending reduced to balance budget
- Taxes on war profits reduced/abolished
- Privatised telephones and other public industry
- Deregulated economy and cut protective tariffs
A
De Stefani’s Policies consequences (1922-25)
- Decentralised economy
- Business growth
- Lower happiness, rebalanced budget
- Pleased industrialists, reduced income
- Decentralised economy
- Manufacturing improved and caused a budget surplus, but agriculture unhappy over tariffs
3
Q
Battle for the Lira
- Artificially fixed Lira at 19 to USD and 92 to GBP
- Forced to introduce deflationary measures, price reductions and worker wage cuts
A
Battle for the Lira consequences
- Valuation was too high
- Export industries lost out as it overvalued Italian products
- Example of how economy shifted to a policy focus
- Represented Mussolini’s power
- Unemployment triples 1925-28
4
Q
Corporate State (1925-27)
- 1925 Palazzo Vidoni Pact
- Apr 1926 Rocco Law
- Jul 1926 ministry of corporations
- 1927 charter of labour
A
Corporate State (1925-27)
- 1925 Palazzo Vidoni Pact made Italian industry only negotiate with Fascist unions
- Apr 1926 Rocco Law bans strikes and lockouts
- Jul 1926 ministry of corporations coordinated disputes
- 1927 charter of labour asserted workers rights were established by mixed corporations and CGL/CIL dissolved
5
Q
Corporate State (1928-1939)
- 1928 Fascist unions split up
- Mar 1930 National council of corporations
- 1934 22 corporations influencing price regulation
- 1939 Parliament replaced by chamber of Fasces and corporations
A
Corporate State (1928-1939)
- 1928 Fascist unions split up, weakening them
- Mar 1930 National council of corporations was a consultation of each sector of economy
- 1934 22 corporations influencing price regulation but must be approved by Mussolini
- 1939 Parliament replaced by chamber of Fasces and corporations but was powerless
6
Q
Effects of corporate state on workers
- Holiday
- Palazzo Vidoni Pact
- Rocco law
- CGL and CIL
- Fascist national syndicates
- National council of corporations
A
Effects of corporate state on workers
- Paid Holiday in 1938
- Palazzo Vidoni Pact restricted negotiations to Fascist unions
- Rocco law banned strikes and lockouts
- CGL and CIL dissolved
- Fascist national syndicates broken up in 1928
- National council of corporations did not have proper representation
7
Q
Effects of corporate state on Industrialists
- 1926 Rocco Law
- 1927 Charter of Labour
- 22 Corporations
- Chamber of fasces and Corporations
- Unions
A
Effects of corporate state on Industrialists
- 1926 Rocco Law banned strikes and lockouts
- 1927 Charter of Labour established workers rights through mixed corporations
- 22 Corporations influenced price regulation after 1934
- Chamber of fasces and Corporations replaced parliament in 1939
- Unions weakened
8
Q
Effects of corporate state on Fascists
- 1925 Palazzo Vidioni Pact
- 1926 Rocco Law
- Fascist unions
- 1939 Parliament replaced
- Ministry of corporations
- National council of corporations
A
Effects of corporate state on Fascists
- 1925 Palazzo Vidioni Pact means negotiation only with Fascist unions
- 1926 Rocco Law bans strikes and lockouts
- Fascist unions split up and weakened
- Parliament replaced by chamber of fasces and corporations in 1939
- Ministry of corporations centralised economic control
- National council of corporations gave away nominal but kept real power
9
Q
Response to the Great Depression
- Banks were struggling due to lacking loan repayments
- Businesses were collapsing due to low demand
- Value of Lira was falling due to foreign competition
- Unemployment went from 300k to 1m
A
Response to the Great Depression
- IMI policy provided credit to banks and IRI bought up shares in firms to prop them up
- Wages cut by 12% in Nov 1930, encouraged price fixing and cartelisation, with mergers common
- Provided education on management and gave financial/technical assistance to support the now state owned industries in order to be sold again
- Large mergers meant fewer businesses closed, public work scheme on roads, rail and houses, and welfare increased
10
Q
Autarky
- Ensured imports strictly matched values of exports
- Minimised/controlled imports to not use foreign currency or gold
- Devalued Lira in Oct 1936 to boost exports
- IRI took over coal and steel to get new raw materials
A
Autarky
- Strengthened control on foreign currency
- Import licencing boosted export industry by Lira devaluation
- More self sufficient
- Agricultural and raw materials stockpiled
11
Q
Battle For Births
- Wanted larger population to improve competition and keep wages low, helped by bachelors tax
- Traditional values
- Tax reductions and loans for large families with prizes for mothers
- Birth control banned and women barred from unsuitable jobs
A
Battle For Births
- Wage cuts meant women had to work
- Traditional values improved church relations
- Tax reductions and loans encouraged large families
12
Q
Battle for Grain
- Placed high tariffs on imported grain
- Grants to buy machinery
- Land used was inefficient
- Educated farmers on new techniques
A
Battle for Grain
- Cereal production doubled 1922-39 but at the expense of wine etc
- New techniques and resistant seeds boosted production
13
Q
Battle for Land
- Laws passed in 23,28 and 33 on reclamation schemes
- Private landowners encouraged to cooperate
- Health
- ‘Mussolini Law’ promised huge investment
- Resisting landowners would have it confiscated
- Land outside Rome
A
Battle for Land
- 80k hectares reclaimed
- Provided jobs
- Reduced malaria by 50%
- Blocked by southern landowners and farmers
- Failed to boost farming
- Pontine Marshes drained
