Economy Flashcards
(23 cards)
Was Mussolini interested in the economy?
- No his priorities lay elsewhere
- Securing himself in power
- Transforming the population into loyal and proud fascists
- Transforming Italy into a strong military power
What was Mussolini’s first goal in economy policy?
To win over powerful industrial elites
Who did Mussolini appoint as the Minister of Finance?
- De’Stefani
- This pleased Italy’s business groups
What did De’Stefani do?
- Focused on reducing government interference in the economy
- e.g. privatised the telephone sector and cut protective tariffs
What did govt debt fall to in 1925?
fell from 74.8% of GDP from 1922 to 50.6% in 1925
What was the Vidoni Pact 1925?
- Socialist trade unions and strikes were outlawed
- recognised fascist syndicates as the only representative body for Italian workers
What happened to manufacturing production between 1921 and 1924?
it improved and there was an upturn in Italian exports
Who did not benefit from Mussolini’s economic policies?
Agricultural groups were unhappy about the reduction in tariffs
What could Italian companies do?
- Sell abroad with ease
- Exports, particularly of cars, textiles and agricultural products doubled between 1922/25
What was the ‘Battle of Lira’?
- Launched in August 1926
- Mussolini’s desire to revalue to lire
What did Mussolini do the Lira in 1927?
It was artificially fixed
Why did Mussolini fix the price of the Lira?
- Purely for propaganda purposes, making the Italian economy seem stronger (increased his prestige)
- demonstrated the will of the il Duce and his power to uphold Italian economic pride
Did the revaluation of the lira improve the lives of workers and Italian people?
- Crippled Italian exports as foreign buyers found Italian products much more expensive
- Export industries (textiles) went into depression
- Unemployment trebled between 1926-28
What was the Rocco Law (April 1926)?
- allowed syndicates some rights represent views/concerns
- Strikes, go-slows and lock-outs were banned
What did the Ministry of Corporations do?
- July 1926
- a mix unions of workers and employers who would discuss and implement national economic planning that met both their interest
- aim for employers and employees to work together
What was the ‘Charter of Labour’ 1927?
Guarenteed workers rights in employment, social insurance and welfare
Success of the ‘Charter of Labour’
It was never followed through
Was the Ministry of Corporations helpful to Italian workers?
- No, it was just propaganda
- Although, it would let employers and workers meet under guidance of PNF workers were not represented by workers but by fascist officials approved by Mussolini
- Fascists officials supported the business instead of workers
How was the Corporate state useful propaganda?
Shows that Mussolini had overcome the problems of class conflict and had constructed a 3rd way between capitalism and communism (increased his prestige)
Why were industrialists happy with the corporate system?
Fascists tended to favour them in disputes
What policies did Mussolini create during the Great depression?
- Large public work schemes to keep employment levels stable
- Government funding for road building doubled between 1929-33
- Created the IMI (Isituto Mobiliare Italiano) ensured major banks were protected from collapse
- Welfare increased
Created IRI, through this the govt bought up shares in banking and industry to help the Italian economy and ensure that they didn’t go bankrupt
What happened to workers wages in the depression?
They were cut
What happened to welfare spending?
Increased from 6.9% to 20.6% between 1930-340 which put strain on govt finances
