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• Mussolini wanted to build a “Third way” in the economy – neither Capitalist nor Communist! “I shall take the best bits of both capitalism and communism”

• The main thing Mussolini wanted, though, was Autarky.

• At first, the Fascists took a laissez-faire approach.
  • Public spending was reduced
  • Taxes on war profits reduced
  • Mussolini tried to balance the budget
  • “What is good for [Fiat] is good for Italy”

• However, from 1929 onwards, Mussolini tried to control the economy.

• Autarky was his main goal. If achieved, it would give Italy economic self-sufficiency – very good in a war, as you don’t rely on anyone for trade! No economic sanctions!

• The Battle for Grain. 75% of Italy’s grain had to be imported!!
  • Told farmers he’d pay them a lot if they grew grain, and gave them tractors too.
  • So they did, tearing up all their self-sufficient crops.
  • When American and Soviet grain became really cheap, Mussolini dropped his farmers like the proverbial hot brick.

• So what happened??
  • Without self-sufficient crops, many fell into poverty…
  • …And were taken over by the bigger farms.
  • However, wheat imports fell by 75%…
  • …But exports of olive oil, wine meat and eggs fell, as countries didn’t trade with Italy – “He’s not buying my wheat, I won’t buy his wine. hah!”
  • Price of bread rose.

• A huge propaganda campaign was released to try and help them achieve autarky.

• Autarky was always going to be impossible because…
  • Virtually no natural resources
  • Lands marked for grain failed
  • As did the “spoils from a campaign” – Abyssinia for example.
  • Still needed to import food.

• Abyssinia had no coal, iron, lands for grain, anything – basically a waste of time! All it achieved was to restore some prestige after Adowa.

• The Battle for the Lira was also launched.
  • In 1922 Mussolini fixed the lira at 90 to the £.
  • By 1926 it had fallen to 150 to the £.
  • In 1927 he fixed it at 92.46 to the £, and 14 to the $. He also reattached it to the gold standard.

• So what happened??
  • Professionals/salaried workers benefited from falling prices.
  • Undermined smaller firms – many went out of business.
  • Damaged Italy’s exports
  • Gov wages were cut b 20% to counter deflation!!

• Battle for the Marshes.
  • Intended to drain the marshes and build towns there & grow grain.

• So what happened??
  • Drained Pontine Marshes - erased Malaria
  • New towns built.
  • But Southern landowners often blocked the plans as they were offered low prices for land that, when drained, would be worth a lot more!!

• Overall – progress in transport, introduced a system to protect small shops from supermarkets, but left poverty and disease mainly untouched.

Comments

These notes are aimed at Edexcel A Level history unit 4 students.

Originally written by Forgotmetea on TSR Forums.