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Aquire territory rich in resources - this would have given Mussolini more land to grow crops, as well as more natural resources - Italy had pretty much zilch in the natural resources department
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He also wanted lands for cultivation to grow grain for Autarky.
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Unify their current lands
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Expand the Empire - he was big on 'recreating the Roman Empire'
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Restore their pride after Adowa. In 1986, Italy marchewd into Abyssinia, gunms and tanks ready ... and got beaten back by the Abyssinians, who had spears and a few old rifles. This caused much hilarity in Europe, and so Mussolini might want his national pride resotred by conquering Abyssinia.
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AUTARKY!!! Autarky was a major aim for Mussolini. If Italy managed to acheive Autarky, they would be free from the slavery of foreign bread, have nothing to fear from Economic Sanctions, etc.
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Italy was the only Fascist country - as Mussolini said, "the Italians as totalitarians were alone in a vicious world"
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British forces controlled the Meditteranean.
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As I have said, a lack of natural resources.
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A 'Catch 22' situation - Mussolini wanted to build up the army, but needed resources for that, but needed the army to get resources!!
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1924 - Hitler tries to 'put down the rebellion' in Austria - in reality, he wanted to invade. To protect South Tirral, which was under Italian control, Mussolini placed his army at the Brenna Pass - forcing Hitler to back down. This earnt Mussolini a lot of international prestige.
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1935 - Musolini invades Abyssinia. He believed that theyb should have been given Abyssinia anyway after WWI (Treaty of Versailles), and that Britain said it was ok to. However, the British decided that it wasn't ok when Abyssinia came to the League of Nations. No sanctions were imposed, though, since Britain was scared of Mussolini's airfrce bombing their navy out of the water.
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1936 - Spanish Civil War. Mussolini sides with Franco (so does Hitler, conincidentaly). While Franco won, and gave Mussolini metals etc. Italian troops were still in Spain in 1938!! :ts:
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1937 - Anti-cominern pact. This was Germany, Italy and Japan allying together against Communism.
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1938 - Anschloss. Hitler does exactly the same as in 1924. However, this time Mussolini does nothing - he even greets him in person as Hitler enters Austria.
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1938 - the Munich Crisis. Hitler wanted war, and threatened to invade Poland unless his demands were met. Chamberlain managed to get them for him ("We have peace in our time!"). Hitler then wanted it all in 10 days. Chamberlain couldn't do this, so he mobilised. Hitler suddenly became paranoid, not wanting to fight Britain, so asked Mussolini to help. Mussolini managed to negotiate a meeting between Hitler and Chamberlain, and everything was sorted out, earning Mussolini a lot of prestige.
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1939 - Pact of Steel - a military alliance between Hitler and Mussolini.
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Withdrawl of US investements.
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Unemployment rose to 2 million.
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Fermers were hit badly.
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Wages fell.
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Set up the IRI to protect industry. It took hold of shares to protect them, and rather than trying any ambitious changes, it acted as a hospital service for ailing firms.
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The no. of hours in the working day were cut.
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More public work avaliable.
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The above two had a very good reason for them: As people got jobs building roads etc. (Solves Inemployment), they earnt money and, with the new roads, spent it on cars etc. (Helped Industry), but of course with added tax (Helps Government). So this scheme helped everyone and got money circulating again.
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Extension of welfare.
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Ban on emigration lifted.
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Gov. encouraged Cartels and price fixing to stabilise the economy.
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Mussolini's government remained strong, earning him prestige throughout Europe.
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Italy's banks didn;t go under like America's, and so people didn't lose their savings.
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Italy's GNP fell by 6% compareed to the rest of Europe averaging at 7%.
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Unemployment in Italy was also lower than in the rest of Europe.
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Originally the economy was rather pathetic.
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Mussolini wanted to achieve Autarky.
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The various battles - battle for grain, marshes, lira.
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The battle for lira was initiated due to Mussolini;s obsession with Autarky, and led to deflation (he had to cut Gov. wages by 20% in 1926) - he fixed the lira at 90 to the £ in 1922, but by 1926 it had fallen to 150 to the £. In 1927 he fixed it at 92.5 to the £ and reattached it to the gold standard, which worked better. However, trying to fix the currency was not particularly beneficial to the economy at first.
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The Battle for grain was (again) a result of Mussolini's desire for Autarky. He promised to pay a lot for Italian grain (originally Italy had to import 75% of its grain), and gave them tractors, fertilisers etc. However, when Canadian and Soviet grain became really cheap, M. dropped his farmers like a hot brick, casuing many small farms to collapse - no-one bought their grain, and they had no self-sufficient crops left. The Battle for Grain was really just propaganda - it also shoved up the price of bread in Italy. Conclusion - not good either!!
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Battle for the Marshes - response to the need for land for cultivation. Mussolini did drain many marshes, erasing malaria in the pontine marshes near Rome. However, only towns were built there, and the South still remained largely untouched. Also, how beneficial was this to the economy?
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The Corporate State - supposedly represented everyone, but really destroyed trade unions, and while owners represented themselves, workers were represented by Fascists - hardly fair!
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The Depression
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While before MUssolini may have been an economic faliure, during the depression he handled the economy well and led Italy through the Depression relatively unscathed.
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Depression = 1935.
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IMI set up to help banks.
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IRI set up to help industry. Acted mainly as a hospital for ailing firms rather than trying anything ambitious, which was good. It also held their shares so they wouldn't lose value.
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The no. of hours in the working day were reduced, and new jobs in public work made. Extension of welfare, ban on emigration lifted.
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This meant that people had jobs (solved unemployment), earnt cash, spent it (made industry happy) but with tax (so Gov. is ok).
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Italy did well in the Depression - little unemployment, GNP only fell by 6%. This led to a lot of prestige both at home and abroad for Mussolini.
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Mussolini's economic policies at first did more harm than good, leaving much of the economy backward and destroying small businesses, firms and farms.
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However, during the depression, Italy's economic policies allowed it to survive very well, losing little of its GNP compared to Europe, handling unemployment well and helping to stop the banks going under.
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