The impact of Fascist economic policies on Italian industry Flashcards
How was M fortunate in terms of when he came to power?
Because he did so just as Italian industry was beginning a boom period
Why was it also beneficial that the economic climate throughout the whole of Europe was improving?
Because many Italian companies were able to sell their products abroad with ease
Give a statistic to prove this
Exports, particularly of cars, textiles and agricultural produce, doubled between 1922-5
What did the regime claim the credit for?
Increasing company profits
How did the regime attempt to win over industrialists early on?
They appointed an economics professor, Alberto de Stefani, as treasury minister
Why did his economic policy reassure industrialists?
Because it was traditional, limiting government spending, which helped prevent inflation
Give an example of him reducing state intervention in industry
The telephone network was taken out of government control and handed back to private companies
What liberal policy was reduced/abandoned to reassure industrialists?
Taxes levies on industries that had made huge profits from government contracts during WWI
Why were industrialists pleased with the Vidoni Palace Pact in 1925?
Because it outlawed socialist and catholic TUs
What did M begin to do after 1925?
Take less notice of business interests
What were two important early examples of this?
The dismissal of de Stefani and the revaluation of the Italian currency
What is revaluation?
Changing the value of a currency compared to another country’s currency
How did the regime try to bring about revaluation?
They tried to increase the value of the lira against other countries’ currencies
What prompted the revaluation?
By 1926 the boom was coming to an end and the lira was falling against other currencies. The exchange rate slipped to around 150 lire to the pound, a rate M found unacceptable
What did this prompt him to announce?
His ‘battle for the lira’
Give a M quote where he announced his ‘battle for the lira’?
‘The fascist regime is ready to make the sacrifices needed, so that our lira, which is itself a symbol of our nation, our wealth, our efforts, our strength, our sacrifices, our tears, our blood, is and will be defended’
What did he do to emphasise his point that a strong, vibrant country should have a strong, vibrant currency?
He tried to set a new exchange rate of 90 lire to the pound in Dec 1927
Why was the 90 lire figure significant?
Because it restored the lira to its value in relation to the pound in Oct 1922, the month when he became PM
Why was the decision positive for M?
Because it increased his prestige with Italians and foreign bankers, who saw the policy as a way of restricting government spending. He had achieved the propaganda victory he desired
Why was the decision negative for M?
It had adverse effects on the Italian economy
List these adverse effects
- Foreign buyers found Italians good nearly twice as expensive, meaning export industries like textiles went into depression
- Unemployment trebled between 1926-8
- Even Fiat, the huge Turin vehicle manufacturer, was exporting fewer cars in the late 1930s than it had done in the early 1920s
Why should the revaluation have benefitted the Italian consumer?
Because imports of foods and other products abroad should have become cheaper
Who were the winners in these economic terms?
Industries such as steel, armaments and shipbuilding