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How did Mussolini's pragmatism directly affect the economy?

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How did Mussolini's pragmatism directly affect the economy?

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Industry and unemployment worked together to bring out fascism

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Industry and unemployment worked together to bring out fascism

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As businesses grew, the rich weakened the working class. The weakened working class went to fascist syndicates for jobs.

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Fascism implemented the idea of that workers should be divided in unions by trade, abolishing social classes. This would lead to a cooperation between the workers and management and allows fair conditions. This allowed for support from the middle and lower classes.

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While the lower classes were heavily taxed throughout fascist rule, the promise of public works and social support allowed for initial support for fascism.

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Shows that initial support for fascism from the wealthy came from the promise of less government control on economy with less taxes. Fascism becomes increasingly unpopular as taxes are raised on rich and more government control is taken to nationalize the economy.

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By the 1930s, it was clear that taxes needed to be raised in order to pay for government spending. Mussolini, through his pragmatism, was not held back in raising the taxes on the wealthy by 60% indirectly and 40% directly.

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The liberal Italian government was largely considered ineffective due to the factionalism and nature of the representative government. Mussolini offered a sense of leadership and action while the other factions fought and achieved little.

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Elites, especially those that benefit from militarization and economic nationalism, benefitted from a strong government keeping existing class structures in place while also maintaining social order with large force.

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Many unemployed joined Fascist syndicates to get employment

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How would Fascism affect the working  class?

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How would Fascism affect the working  class?

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Fascism appealed to working-class demands to an extent, retaining some aspects of it's populist fiscal policy positions.

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How did the Fascists bring national unity?

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How did the Fascists bring national unity?

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Institute for Industrial Reconstruction (IRI)

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Institute for Industrial Reconstruction (IRI)

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Set up in 1933 in order to help the failing Italian industrial sector.  Reorganized banks and companies in order to nationalize Italian industry. While less significant in 1933 by 1939 it would controll 20% of industry.

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The petty bourgeoisie was threatened by the growing revolutionary proletarian sentiment. Fascism provided a powerful and quick force to quell any encroachment on their capital.

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Fascism was not set upon a rigid set of ideals, but rather tried to work with practical issues. This opposes the idealist nature of capitalism and communism and gives a "third way" to politics and economics that Mussolini used to gain support.

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What did fascism offer during the Great Depression?

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What did fascism offer during the Great Depression?

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Italy lacked foreign money, being unable to trade with other countries, and lacked some of their basic necessities. They couldn't join Germany in World War II until they got decent-enough supplies.

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What about internal trading?

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How does it effect me, as a farmer?

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Why was Fascism appealing to people economically?

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Why was Fascism appealing to people economically?

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Many autostradas were built, which helped to connect the country with efficient travel. 5000 km of railway were also electrified. However, many small, local roads were left untouched, so local industries were not improved.

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Fascism supported Laissez-faire policies which allowed many industries to rapidly expand. Fascism also weakened trade unions, allowing industry to grow even further

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Not attainable by Italy and caused Italy's trade to collapse causing them to not have sufficient natural resources to function

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Mussolini wanted a self-sufficient nation, but it wasn't very successful.

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Italians were heavily reliant on grain production from Southern Italy and the resulting switch to heavy imports of dairy and other food products. While it benefited the idea of self sufficiency on grain, it led many workers to flee to cities for jobs. Fascism also promoted an end to the socialist revolution, leading the farmers to keep the massive amounts of land they acquired during the War

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Because of inflation, loss of jobs, and unsettled post-war debt, Italy economy still suffered. Although not to the extent of other countries like the United States and Germany, it still had repercussions.