The War economy and Cost of war Flashcards
What effect did the war have on Italy’s economy?
It had and interesting effect on their economy as at the start of the war, Italy was behind Austria in all the main economic areas crucial for war. e.g. for every 2 machine guns, the Austrians had 12. However, over the years Italy made a significant change in their economic situation.
How did their economy improve?
By the end of the war, Italy had produced 20000 machine guns ans 7000 pieces of heavy artillery which was more than the British managed to produce.
What was the success of Italy’s economy driven by?
It was driven by the under secretariat of arms and munitions, Alfredo Dalliolo. He organised the recruit of women and peasants into factories and made sure men essential for war production were exempt from service. 1/4 of munitions employees were women. Working hours were increased and strikes made illegal with those who didn’t comply facing military tribunals.
How did Dalliolo help businesses?
He arranged cheap loans and established profitable contracts for big businesses. For industrialists, there was no worry as they were backed by the state and banks which fueled their expansion.
Why was this expansion worrying in the long term?
The rapid growth was based almost entirely on government investment in war production and was being paid for by foreign loans and the printing of more money. this meant that at the end of the war, there would be heavy inflationary pressures and cuts to government spending with the country being 23billion lire in debt compared to 2.9 before the war.
How was Italy’s economy unbalanced?
war based sectors such as steel and engineering was growing alarmingly fast compared to other industries. the war economy also increased the north south divide as most of the industrialization of the war was in the north with the south remaining an impoverished agricultural society.
Effects of the economy on the people of Itlay
by 1917, bread and pasta were being rationed and meat and sugar consumption falling rapidly. There was a fall in real wages of about 25% when industrialists were making vast profits and this led to workers becoming angry. The government increased indirect tax in order to pay for the war effort and this led to greater social division as the poor couldn’t afford them.
What happened in August 1917?
There was a protest in Turin against the bread shortages and the continuation of the war. during the riot, 50 people were killed shocking politicians who increased food supplies and pro-war propaganda.
