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Just as the liberal government was doing, Mussolini also wanted to fix Lira because it was harming the middle class. By doing this he hoped to give more power to them and as a bonus help with foreign trade.

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How did the Italian government change when fascism was introduced?

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How did the Italian government change when fascism was introduced?

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Depended on other countries for military funds during World War , which caused the country to go into debt.

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Keep power within the government to control spending. Each citizen would be responsible for providing resources.

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How did Mussolini's way of making money differ from other government ways?

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How did Mussolini's way of making money differ from other government ways?

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How should Italy fund government spending? 

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How should Italy fund government spending? 

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State beuraucracy, prestige projects, help to industry, public works, welfare measurements, araments, wars

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How was the general population affected after fascism started?

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How was the general population affected after fascism started?

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Although the taxes were still high, in 1935 National Prices Committee controlled prices and inflation.

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How were the wealthy affected after Mussolini came into power?

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How were the wealthy affected after Mussolini came into power?

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The wealthy became unhappy once everything started. Part of Mussolini's goals was to exploit the rich and he did this through taxation. He raised taxes 60% indirectly and 40% directly. When the wealthy asked for another government it was declined.

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Before Mussolini came to power, the wealthy were happy with taxation because they were being reduced to further investment. Although the general populations taxes were being raised indirectly. Before Mussolini, it was a liberal government. At that point they were trying to reduce inflation by fixing the value of Lira.

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Dealing with lots of adversity in the economic slump, the Fascists did a lot to help the industry in Italy. They encouraged price-fixing, cartels, and created larger wage cuts. They even created a program, IRI, the Institute for Industrial Reconstruction. The IRI went on to own 45 percent of steel production, 90 percent of ship building, and even owned 20 percent of all industry.

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The Italian government focused on helping the businesses by preserving the current state rather than trying to reorganize and make strides. There was a big slump in the entire world industry due to the 1929 stock market crash. The depression led to tons more of government intervention in every day businesses.

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There was significant government intervention in the agriculture industry. Fascism encouraged Italians to leave the dirty, polluted, city and move to the clean life of the rural farm.

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Southern landowners were expected to comply with Mussolini's demands to give up their land in order to increase the amount of land dedicated to agriculture. However, they made it very difficult for Mussolini to get the land he wanted.

Mussolini also tried to establish a prosperous landowning peasantry, but due to the hard conditions of the countryside, this was unsuccessful.

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Mussolini sought to show that Italy was a major power by proving the capability of Italy's agricultural industry. Wheat production went up 100% between 1922-1939, and Italy nearly became self-sufficient in cereal production by 1940.

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The mutilated victory after WWI tore Italy apart; they needed a sense of unity and national pride.

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Fascists constructed motorways and electrified 5000 km of railway. The heavy investment in the railway industry popularized the use of trains as a means of transport.

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How does transport become more efficient?

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How does transport become more efficient?

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Mussolini raised tariffs on imported goods in order to help the growth of Italian industries, particularly the grain industry.

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How does Italy become more self-sufficient?

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How does Italy become more self-sufficient?

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During WWI, Italy was heavily dependent on other countries for resources, and had a relatively large trade deficit.

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What were the buiding blocks of Italy's economy?

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What were the buiding blocks of Italy's economy?