TSR Wiki > Study Help > Subjects and Revision > Revision Notes > History > Mussolini - Economic Policy
- 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.
