Italy Booklet 6- The Fascist Economy Flashcards
(32 cards)
When was Alberto de Stefani appointed minister of finance?
1922
What did de Stefani believe in?
The ideas of free trade and laissez-faire economics. He wanted to keep government interference in the economy to a minimum.
What did de Stefani do as minister of finance and what consequences happened as a result of this?
Privatised the telephone sector, reduced state expenditure, deregulated the economy and cut protective tariffs. This meant that manufacturing production improved from 1921 to 1924. However, agricultural groups were unhappy about the reduction in tariffs and there were inflationary problems and pressure on the lira in foreign markets.
Who replaced Alberto de Stefani as minister of finance in 1925?
Count Giuseppe Volpi.
What was the rate of inflation?
In 1922- 90 lira = £1
In 1926- 150 lira = £1
What policies were introduced in the Battle for Lira?
In December 1927, the lira was artificially fixed at 92.46 to the British pound.
Deflationary measures like massive price reductions and cuts to workers wages.
What were the consequences of the Battle for Lira?
Export industries suffered as this overvalued Italian products in overseas markets. The policies represented Mussolini’s power and strength as a leader rather than the actual economic needs of the Italian people.
How did Mussolini justify the Battle for Lira?
He suggested that the collapse of the lira would lead to moral and economic disaster and that he doesn’t want the Italian people to have to suffer this.
What did the creation of the Corporate State grow out of?
The failure of Rocco Law 1926 which failed completely to balance out the interests of the fascist syndicates and Italian industry.
What was the Ministry of Corporations meant to be?
A mixed union of workers and employers who would discuss and implement national economic planning which would benefit them both, thus leading to a more productive and harmonious economic order. It was also meant to unify Italy’s classes and create a ‘third way’ between capitalism and communism.
Why did the corporations actually favour employers?
Employers were chosen by other employers to represent them in the corporations however, workers were chosen by fascist officials who were approved by Mussolini. This means that workers are more loyal to fascism and Mussolini than they are to other workers, so policies made won’t benefit workers as they aren’t being properly represented.
What was the Charter of Labour 1927 meant to do?
Guarantee workers rights in employment but it was never followed through.
How did Mussolini benefit from the Corporate state?
It made him look like a strong and ingenious leader who invented a whole new economic system that ended class conflict.
How did fascists benefit from the Corporate state?
It provided jobs for loyal fascists.
What did the IMI policy do to help Italian banks during the Great Depression?
Provided credit to banks to guarantee they wouldn’t collapse.
What did the IRI policy do to help Italian banks during the Great Depression?
The government bought shares in banking, industry and commerce to prop up the Italian economy.
What did Mussolini do to help businesses survive during the Great Depression?
Cut workers wages by 12% in November 1930 and some mergers were made compulsory to mean less competition (cartelisation).
How did Mussolini try to fix the problem of unemployment rising from 300,000 to over 1 million as a result of the Great Depression?
Employment was provided through road building, house construction and electrification of railways. e.g. 5,000km of railway was electrified. Welfare was also increased for the unemployed.
What is autarky and why did Mussolini want to achieve this?
Economic self-sufficiency. Mussolini wanted this for 3 reasons: the decline in Italian trade overseas because of the overvalued lira and the Great Depression, the sanctions placed on Italy after Abyssinia and in preparation for the war which Mussolini believed was coming.
By how much did government spending on autarky increase?
From 30 billion lire in 1934 to 60 billion lire by 1938.
Which policies were made to try and achieve autarky?
Agricultural products like cereals and wool were stockpiled to guarantee a consistent supply at regular prices. Devalued the lira in 1936 to reduce imports and increase exports. The government took over some private firms through the IRI scheme and they were made responsible for finding sources of energy, metals and raw materials within Italy and its colonies.
Why did Mussolini want to increase Italy’s population from 40 million to 60 million by the 1950s?
It would help Italy become a world power as they would have greater military strength and more consumers which would bring economic benefits. It also fitted with the Catholic Church’s values of the role of women.
What policies did Mussolini introduce in the Battle for Births?
Prizes were given to mothers of large families and there were tax reductions and loans to larger families. Bachelors’ tax encouraged men to get married. All forms of birth control were banned and women’s employment was opposed.
Why did Mussolini want to increase Italy’s grain production?
It would make them less reliant on other countries as Italy had substantial grain imports. It would also make Italy look strong and independent.
