Mussolini's Economic Policies - 1922-7, 1927-9, Corporate State, The Depression, 1936 onwards.
Aims: To consolidate political system, to make Italy self-sufficient (autarky) and to provide an economic base for his military army.
· 1922-7 - general economic recovery, not much change from liberal economic policies by lowering government involvement, THE BATTLE FOR THE LIRA - reduce inflation and fix price of lira, bank tightly controlled issuing of money, value of lira increased showing Mussolini's authority and helped industries involved in imports BUT caused deflation, undermined small businesses and government had to cut all wages by 20%
· At first workers benefited from economic revival but didn't last long, economy began to weaken and was caused by over valuation of the lira - consequence of Battle of Lira.
· Corporations set up for each sector of industry, employers and Fascist trade unions to represent workers, claimed it would end all industrial conflict. Strikes made illegal, ended trade unions, claimed success as all conflict removed BUT representation unbalanced, Mussolini made real decisions and conflict not solved between employee/ers
· The wall street crash in the USA led many countries into a depression. Italy not escape, large companies collapsed and car production fell by 50%. Fascist government gave money to banks to help them out, became effectively their owners, Italy did better than other European countries BUT cost everyday tax payer alot.
· Autarky = self-sufficiency, Mussolini announced this plan accompanied by heavy propaganda, encouraged heavy industries such as steel, chemicals and ship building, Italy became totally self-sufficient in grain due to the Battle for Grain BUT by WW2 Italy still far from self-sufficient as major products such as oil and coal still needed to be imported.