After Mussolini became dictator in 1925, he began a program of massive deficit spending, public works, and eventually, militarism.

Preparing for the coming war, Mussolini extensively used protectionist measures to turn the economy toward economic self-sufficiency. Government bureaus had to purchase Italian products only, and increased tariffs on imports were introduced in 1931, along with high import quotas, and embargo on industrial goods.

Eventually profit motive was being reduced after Mussolini eliminated the ability of business to make independent decisions. The government now controlled all prices and wages, it regulated agriculture by dictating crops and breaking up farms. Banking system was also controlled to an extraordinary extend.

Later, in the 30s and early 40s Hitler's nazism shared many features with Italian fascism, including the syndicalist front. Nazism, too, featured complete government control of industry, agriculture, finance, and investment.

As World War II came closer, the signs of fascism's failure in Italy were visible: private consumption had fallen to the level below that of 1929s, and the industrial production between 1929 and 1939 was much lower than the rates for other Western European countries. Labour productivity was low and production costs were uncompetitive. The fault lay in the shift of economic decision-making from entrepreneurs to government bureaucrats, and in the allocation of resources by government decisions rather than by free markets. Mussolini designed his system to satisfy the needs of the state, not of consumers. In the end it turned out that neither was satisfied.

ability – способность, возможность

allocation – распределение, размещение

axe – топор

bundle – связка

bureau – бюро

compose – составлять

council – совет

dictator – диктатор

eliminate – уничтожать, упразднять

extensively – экстенсивно, активно

extraordinary – экстраординарный, сверхъестественный

fascism – фашизм

fault – ошибка, недостаток

feature – являть собой, рисовать

militarism – милитаризм

nationalism – национализм

nazism – нацизм

proletarian – пролетарский

purchase – приобретать

reduce – сокращать

resolve – разрешать, решать

rod – прут

satisfy – удовлетворять

shift – сдвиг

suffer – страдать

supervise – осуществлять надсмотр

syndicalism – синдикализм

undermine – подрывать

be welcome – быть желательным

World War I – Первая мировая война

turn nationalist – превратиться в националиста

Corporative State – корпоративное государство

aim at preventing – иметь своей целью предотвращение

class struggle – классовая борьба

massive deficit spending – значительные по объему расходы, создающие бюджетный дефицит

public works – гражданские работы

protectionist measures – протекционистские меры

self-sufficiency – самодостаточность

syndicalist front – синдикалистский фронт

turn out – оказываться

Exercise 6

Answer the questions:

1. Where does the word «fascism» come from?

2. How do private property and the profit motive correlate with the interests of the state under fascism?

3. What did economic fascism in Italy grow from?

4. What was for the Italian nationalists the sure way to win a greater share of the world's wealth?

5. How were economic decisions made in Mussolini's Corporative State?

6. What program did Mussolini begin in 1925?

7. What measures were taken to make Italy self-sufficient economically?

8. What do Mussolini's fascism and Hitler's nazism, as economic systems, have in common?

9. What signs of fascism's failure in Italy were visible before World War II?

10. Whose needs did Mussolini want to satisfy by building the system of Corporative State?