https://en.wikipedia.org/wiki/Economy_of_Italy_under_fascism#Fascist_economic_policy
Fascist economic policy[edit]
Benito Mussolini came to power in 1922 and tried to transform the country's economy along fascist ideology, at least on paper. In fact he was not an economic radical, nor sought a free-hand in the economy. His main interest was to use economic power to politically reshape the Italian state to fit his ideological outlook. He aligned himself with industrial interests and forged a modus vivendi with the ruling groups of Italian capitalism. As in Nazi Germany the economic policies of Mussolini are difficult to define. There is a messy tangle between economic theory and economic practice which leads to two opposing views - either Mussolini had an economic plan, or that he did not, but instead reacted to changes without forward planning.[1]
To proponents of the first view, Mussolini did have a clear economic agenda, both long and short-term, from the beginning of his rule. The government had two main objectives — to modernize the economy, and to remedy the country's lack of strategic resources.
To stimulate development Mussolini pushed the modern capitalistic sector in the service of the state, intervening directly as needed to create a collaboration between the industrialists, the workers, and the state. The government crushed fundamental class conflicts in favour of corporatism. In the short term the government worked to reform the widely-abused tax system, dispose of inefficient state-owned industry, cut government costs, and introduce tariffs to protect the new industries.
The lack of industrial resources, especially the key ingredients of the industrial revolution, was countered by the intensive development of the available domestic sources and by aggressive commercial policies - searching for particular raw material trade deals, or attempting strategic colonization.
Some historians,[citation needed] however, have argued that Mussolini had essentially no grasp of economics and that Italian fascism was actually a negative force on the Italian economy - holding back genuine modernisation and badly distorting economic development, even before the war.
First steps[edit]
The Fascist government began its reign in an insecure position. Coming to power in 1922, after the March on Rome, it was a minority government until the 1923 Acerbo Law and the 1924 elections, and it took until 1925, after the assassination of Giacomo Matteotti, to establish itself securely as a dictatorship.
Economic policy in the first few years was largely classical liberal, with the Ministry of Finance controlled by the old liberal Alberto De Stefani. The government undertook a low-key laissez-faire program — the tax system was restructured (February 1925 law, 23 June 1927 decree-law, etc.), there were attempts to attract foreign investment and establish trade agreements, efforts were made to balance the budget and cut subsidies. The 10% tax on capital invested in banking and industrial sectors was repealed, while the tax on directors and administrators of anonymous companies (SA) was cut down by half. All foreign capital was exonerated of taxes, while the luxury tax was also repealed.[2] Mussolini also opposed municipalization of enterprises.[2]
The 19 April 1923 law transferred life insurance to private enterprise, repealing the 1912 law which had created a State Institute for insurances and which had envisioned to give a state monopoly ten years later.[3] Furthermore, a 19 November 1922 decree suppressed the Commission on War Profits, while the 20 August 1923 law suppressed the inheritance tax inside the family circle.[2]
There was a general emphasis on what has been called productivism — national economic growth as a means of social regeneration and wider assertion of national importance.
Up until 1925 the country enjoyed modest growth but structural weaknesses increased inflation and the currency slowly fell (1922 L90 to £1, 1925 L145 to £1). In 1925 there was a great increase in speculation and short runs against the lira. The levels of capital movement became so great the government attempted to intervene. De Stefani was sacked, his program side-tracked, and the Fascist government became more involved in the economy in step with the increased security of their power.
In 1925, the Italian state abandoned its monopoly on telephones' infrastructure, while the state production of matches was handed over to a private "Consortium of matches' productors.[3]"
Furthermore, various banking and industrial companies were financially supported by the state. One of Mussolini's first act was to fund the metallurgical trust Ansaldo to the height of 400 millions Lire. Following the deflation crisis which started in 1926, banks such as the Banco di Roma, the Banco di Napoli or the Banco di Sicilia were also assisted by the state.[4] In 1924, the Unione Radiofonica Italiana (URI) was formed by private entrepreneurs and part of the Marconi group, and granted the same year a monopoly of radio broadcasts. URI became the RAI after the war
