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How did the Great depression affect italy?
Transcript of How did the Great depression affect italy?
The Great Depression of 1929 had a major impact on the world. The crisis majorly influenced political and economical aspects in Italy. It allowed leaders such as Hitler and Mussolini to gain the support of their countries with their promises to stop unemployment. This was important because in Italy, after the Wall Street Crash, many industries that had came close to failure were bought out by banks.
Effects of the Great Depression
The Great Depression caused:
A persistent decline in international trade
A large fall in hours worked and production in the tradable sector
How bad were the consequences of the Great Depression on Italy?
Many people agree that Italy did not suffer as much as other countries in the early 1930. I believe that this may have partially due to it's leader at the time. Mussolini had attempted to make Italy self-sufficient early on, when he had first came to power in the 1920s. After WWI, the economy in Italy was weak and in order to improve it, Mussolini introduced a plan based on a two-fold approach: attacking the power of the trade unions and therefore controlling the workers, and setting Italy targets as he had with his Battle for Births. To get Italy on the road to economic prosperity, three battles were introduced: the Battle for Land, the Battle of the Lira and the Battle for Grain.
The Battle for Land aimed to clear marshland and make it useful for farming and other purposes. Cleared land also meant room for roads to improve Italy's infrastructure. Since these projects were labor intensive, they employed a lot of people.
It is commonly noted that the Great Depression led to a rise in Fascism. Fascism was made popular by Mussolini in Italy, around 1922. and gained attention in Italy after 1929 because it was one of the only governments that survived the economic collapse. This was because Mussolini reacted quickly, starting a large program of public construction projects, which put many jobless Italians back to work. Fascism could be seen as a "quick-fix" to the economic problems.
how did the Great depression affect italy?
The Fascist government nationalized the holding of large banks which had ensued significant industrial securities. A number of entities were formed, that brought together representatives of the government and of the major businesses. The representatives attempted to find common ground between economic policies and manipulated prices and wages, to satisfy both the wishes of the government and the businesses. This partnership soon became known as corporatism. The Italians maintained these policies throughout the 1930s as they helped rebuild the devastation caused by the Great Depression.
Lira is the former currency of Italy. The revolution made imports cheaper, therefore benefiting heavy industries which relied on imported raw materials. Tariffs on undesirable imports such as consumer goods and foodstuffs kept their high price and restricted demand. While this temporarily achieved the aims of making Italy self-sufficient. It was not helpful during the time of Depression.
The Battle of Grain involved growing grain at the expense of fruits and vegetables, which were cheaper to produce. This plan benefited farmers who were assured a good price for what they produced, but the poor were hit hard. As bread was a major part of their diet and the prices rose, this was not ideal.
The Industrial Reconstruction Institute
Financial crisis met its peak in 1932 and the Industrial Reconstruction Institute (IRI) was formed in January 1933, taking control of the bank-owned companies and unexpectedly giving Italy the largest state-owned industrial sector in Europe (apart from the USSR). The IRI focused on restructuring, modernising and rationalising