NationMaster - Encyclopedia: Fascist economy

The economics of fascism refers to the economic policies implemented by fascist governments. "Fascism" itself is a term used to refer to a variety of highly nationalist movements and regimes that existed in parts of Europe (and, according to some, Latin America) during the early to mid 20th century. There is no single established definition of fascism, and most groups identified as "fascist" do not use that description for themselves, usually claiming instead to be based on the particular traditions of their country of origin and to have little or no connection with each other. This, in addition to the fact that fascist ideologies rarely concern themselves with economic issues, poses serious obstacles to any comparative study of the economics of fascism. Image File history File links Circle-question-red. ... Image File history File links Unbalanced_scales. ... This article needs additional references or sources to facilitate its verification. ... Nationalism is an ideology that creates and sustains a nation as a concept of a common identity for groups of humans. ... World map showing the location of Europe. ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ...

Nevertheless, some scholars and analysts argue that there is an identifiable political economy of fascism that is distinct from other systems, comprised of essential characteristics that fascist nations shared.^[1] Others argue that while fascist economies share some similarities, there is no distinctive form of fascist economic organization.^[2] A few see echoes of fascist economic policies in the modern welfare state;^[3] in the expanding imperial power of U.S. based transnational capitalism;^[4] and in neo-corporatist relationships between the state and private enterprise.^[5]

[edit] General characteristics of fascist economies

The first fascist or proto-fascist movements arose in the last years of World War I. They carried a promise of national rebirth, they blamed liberalism, socialism and materialism for the decadence they perceived in society and culture, and they advocated a return to traditional conservative values (though they proposed to achieve this through a new political system).^[6] â€œThe Great War â€ redirects here. ... Liberalism is an ideology, philosophical view, and political tradition which holds that liberty is the primary political value. ... Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community. ... In philosophy, materialism is that form of physicalism which holds that the only thing that can truly be said to exist is matter; that fundamentally, all things are composed of material and all phenomena are the result of material interactions. ... This article deals with conservatism as a political philosophy. ...

One significant fascist belief was that prosperity would naturally follow once the nation has achieved a cultural and spiritual re-awakening.^[7] As a result, fascists considered the economy to be of little importance and did not have clear economic views. Often, different members of a fascist party would make completely opposite statements about the economic policies they supported.^[8] Once in power, fascists usually adopted whatever economic program they believed to be most suitable for political goals. Long-lasting fascist regimes (such as that of Benito Mussolini in Italy) made drastic changes to their economic policy from time to time. Benito Amilcare Andrea Mussolini (July 29, 1883 â€“ April 28, 1945) was the prime minister and dictator of Italy from 1922 until 1943, when he was overthrown. ...

Nevertheless, fascists did have a number of important political views that shaped many of their economic decisions. The first of these was the fundamental fascist opposition to both socialism and liberal capitalism. Fascists argued that the implementation of their ideas into the economic sphere would represent a "third way", and they favoured corporatism and class collaboration. They believed that the existence of inequality and separate social classes was beneficial (contrary to the views of socialists)^[9], but they also argued that the state had a role in mediating relations between these classes (contrary to the views of liberal capitalists).^[10] Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community. ... Liberalism is an ideology, philosophical view, and political tradition which holds that liberty is the primary political value. ... It has been suggested that Definitions of capitalism be merged into this article or section. ... Third way can refer to: The Third Way, an economic and political idea that positions itself between democratic socialism and laissez-faire capitalism, combining the ordoliberal social market with neo-liberalism. ... Historically, corporatism or corporativism (Italian: corporativismo) refers to a political or economic system in which power is given to civic assemblies that represent economic, industrial, agrarian, and professional groups. ... Volksgemeinschaft was an attempt by the German Nazi Party to establish a national community of unified mind, will and spirit. ... Social class refers to the hierarchical distinctions between individuals or groups in societies or cultures. ...

Fascists claimed to provide a realistic economic alternative that was neither laissez-faire capitalism nor communism.^[11] An inherent aspect of fascist economies was economic dirigisme.^[12] In general, apart from the nationalizations of some industries, fascist economies were based on private property and private initiative, but these were contingent upon service to the state.^[13] Dirigisme (from the French) (in English also dirigism although per the OED both spellings are used) is an economic term designating an economy where the government exerts strong directive influence. ...

Fascism also operated from a Social Darwinist view of human relations. Their aim was to promote "superior" individuals and weed out the weak.^[14] In terms of economic practice, this meant promoting the interests of successful businessmen while destroying trade unions and other organizations of the working class.^[15] Lawrence Britt suggests that protection of corporate power is an essential part of fascism.^[16] Historian Gaetano Salvemini argued in 1936 that fascism makes taxpayers responsible to private enterprise, because "the State pays for the blunders of private enterprise... Profit is private and individual. Loss is public and social."^[17] This article needs additional references or sources to facilitate its verification. ... A trade union or labor union is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment. ... The term working class is used to denote a social class. ... Image:Gaetano Salvemini. ...

Finally, fascism was highly militaristic. As such, fascists often increased military spending significantly, and their main reason for economic development was the wish to have a strong economy backing a strong military. Fascist governments encouraged the pursuit of private profit and offered many benefits to large businesses, but they demanded in return that all economic activity should serve the "national interest".^[18] In most cases, this meant that foreign trade was discouraged or outright banned; fascists believed that too much international trade would make the national economy dependent on international capital, and therefore vulnerable to international economic sanctions. Economic self-sufficiency, known as autarky, was a major goal of most fascist governments.^[19] Militarism or militarist ideology is the doctrinal view of a society as being best served (or more efficient) when it is governed or guided by concepts embodied in the culture, doctrine, system, or people of the military. ... A military budget of an entity, most often a nation or a state is the budget and financial resources dedicated to raising and maintaining armed forces for that entity. ... An autarky is an economy that limits trade with the outside world, or an ecosystem not affected by influences from the outside, and relies entirely on its own resources. ...

There have been considerable debates over the adoption of allegedly fascist economic policies in democratic nations. Some critics of President Franklin D. Roosevelt in the United States argued that certain parts of the New Deal - particularly the National Recovery Administration - represented collusion between business and government and were therefore fascist. President Herbert Hoover, in his Memoirs, accused the New Deal of being a "remaking of Mussolini's corporate state." Likewise, Ronald Reagan said that "it was Mussolini's success in Italy, with his government-directed economy, that led the early New Dealers to say 'But Mussolini keeps the trains running on time." In 1944 conservative historian John T. Flynn wrote As We Go Marching, which detailed the claimed similarites between the New Deal and the economy of Fascist Italy. See Fascism and ideology. Democracy (literally rule by the people, from the Greek demos, people, and kratos, rule[1]) is a [[List of forms of government|form of government]. While the term democracy is typically used in the context of a political state, the principles are also applicable to other groups and organizations. ... FDR redirects here. ... The New Deal was the title President Franklin D. Roosevelt gave to the series of programs initiated between 1933â€“1938 with the goal of relief, recovery and reform of the United States economy during the Great Depression. ... NRA Blue Eagle poster. ... Herbert Clark Hoover (August 10, 1874 â€“ October 20, 1964), the 31st President of the United States (1929â€“1933), was a world-famous mining engineer and humanitarian administrator. ... Ronald Wilson Reagan (February 6, 1911 â€“ June 5, 2004) was the 40th President of the United States (1981 â€“ 1989) and the 33rd Governor of California (1967 â€“ 1975). ... John T. Flynn John Thomas Flynn (October 25, 1882-1964) was a U.S. journalist. ... There are numerous debates concerning fascism and ideology and where fascism fits on the political spectrum. ...

[edit] Political economy of Fascist Italy

The National Fascist Party of Benito Mussolini came to power in Italy in 1922, at the end of a period of social unrest. Working class activism was at a high point, militant trade unions were organizing increasingly frequent strikes to demand workers' rights, and the Italian Socialist Party was making significant electoral gains. This caused widespread fear among Italian business circles and part of the middle class, who believed that a communist revolution was imminent. With the traditional right-wing parties appearing incapable of dealing with the situation, King Victor Emmanuel III turned to the young Fascist movement, which he considered to hold a hardline right-wing orientation by violently suppressing strikes, and appointed Benito Mussolini prime minister. Soon after his rise to power, Mussolini defined his economic stance by saying that: This article or section does not cite any references or sources. ... The National Fascist Party (Partito Nazionale Fascista; PNF) was an Italian party, created by Benito Mussolini as the political expression of Fascism (previously represented by groups known as Fasci; see also Italian fascism). ... Benito Amilcare Andrea Mussolini (July 29, 1883 â€“ April 28, 1945) was the prime minister and dictator of Italy from 1922 until 1943, when he was overthrown. ... Year 1922 (MCMXXII) was a common year starting on Sunday (link will display full calendar). ... The term working class is used to denote a social class. ... A trade union or labor union is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment. ... Labor rights or workers rights are a group of legal rights and claimed human rights having to do with labor relations between workers and their employers, usually obtained under labor and employment law. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... The middle class (or middle classes) comprises a social group once defined by exception as an intermediate social class between the nobility and the peasantry. ... It has been suggested that Proletarian revolution be merged into this article or section. ... Victor Emmanuel III Victor Emmanuel III (Italian: Vittorio Emanuele III) (November 11, 1869 - December 28, 1947), nicknamed The Soldier, was the King of Italy (July 29, 1900 - May 9, 1946), and claimed the titles Emperor of Ethiopia (1936 - 1943) and King of Albania (1939 - 1943). ...

Specifically, during the first four years of the new regime, from 1922 to 1925, the Fascist had a generally laissez-faire economic policy under the Finance Minister Alberto De Stefani. Free competition was encouraged. De Stefani initially reduced taxes, regulations and trade restrictions on the whole.^[21] De Stefani reduced government expenditure and balanced the budget. Some former government monopolies (such as the telephone system) were privatized. Some previous legislation introduced by the Socialists, such as the inheritance tax, was repealed.^[22] During this period prosperity increased and by mid-1920s industrial production had passed its wartime peak. However, this was accompanied with inflation.^[23] Overall, this was a period when Fascist economic policy mostly followed classical liberal lines, with the added features of attempting to stimulate domestic production (rather than foreign trade) and balancing the budget.^[24] In a speech given in May 1924, Mussolini declared that he supported the right to strike.^[25] Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... This article does not adequately cite its references or sources. ... The examples and perspective in this article or section may not represent a worldwide view. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam...

However, "once Mussolini acquired a firmer hold of power... laissez-faire was progressively abandoned in favour of government intervention, free trade was replaced by protection[ism] and economic objectives were increasingly couched in exhortations and military terminology."^[26] De Stefani was forced to resign in 1925 because his policy of free trade was opposed by many Italian business leaders, who favored protectionism and subsidies to insulate domestic business from international competition. In 1926, Mussolini gave an impassioned speech demanding monetary policies to halt inflation and stabilize the Italian currency (the lira). He also took the final step of officially banning any kind of strike action. From 1927 to 1929, under the leadership of the new Finance Minister Alberto Beneduce, the Italian economy experienced a period of deflation, driven by the government's monetary policies.^[27]^[28] Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over... ISO 4217 Code ITL User(s) Italy, San Marino, Vatican City, but not Campione dItalia Inflation 2. ... Deflation (economics) Deflation (data compression) Deflation is the removal of loose soil by eolian (wind) processes This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...

In 1929, Italy was hit hard by the Great Depression. The Italian economy, having just emerged from a period of monetary stabilization, was not ready for this shock. Prices fell and production slowed. Unemployment rose from 300,787 in 1929 to 1,018,953 in 1933.^[29] Trying to handle the crisis, the Fascist government nationalized the holdings of large banks which had accrued significant industrial securities.^[30] The government also issued new securities to provide a source of credit for the banks and began enlisting the help of various cartels (consorzi) that had been created by Italian business leaders since 1922. The government offered recognition and support to these organizations in exchange for promises that they would manipulate prices in accordance with government priorities.^[31] A number of mixed entities were formed, called instituti or enti nazionali, whose purpose it was to bring together representatives of the government and of the major businesses. These representatives discussed economic policy and manipulated prices and wages so as to satisfy both the wishes of the government and the wishes of business. The government considered this arrangement to be a success, and Italian Fascists soon began to pride themselves on this outcome, saying they had survived the Great Depression without infringing on private property. In 1934, the Fascist Minister of Agriculture said: The Great Depression was a time of economic down turn, which started after the stock market crash on October 29, 1929, known as Black Tuesday. ... This article or section does not cite any references or sources. ... A cartel is a group of legally independent producers whose goal it is to fix prices, limit supplies and limit competition. ...

This economic model based on a partnership between government and business was soon extended to the political sphere, in what came to be known as corporatism. From 1934 onwards, believing that Italy could have avoided the Great Depression if it had not been linked to international markets, Benito Mussolini insisted that autarky should be one of the primary goals of his government's economic policy. To this end, the Fascists began to impose significant tariffs and other trade barriers.^[33] In 1935, Mussolini boasted that three-quarters of Italian businesses relied on the government.^[34] Mussolini also adopted a Keynesian policy of government spending on public works to stimulate the economy. Between 1929 and 1934, public works spending tripled to overtake defense spending as the largest item of government expenditure.^[35] Historically, corporatism or corporativism (Italian: corporativismo) refers to a political or economic system in which power is given to civic assemblies that represent economic, industrial, agrarian, and professional groups. ... An autarky is an economy that limits trade with the outside world, or an ecosystem not affected by influences from the outside, and relies entirely on its own resources. ... Keynesian economics, or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s. ...

In 1935, following the Italian invasion of Ethiopia, the League of Nations imposed trade sanctions on Italy. This forced Italy to achieve autarky immediately, and strengthened Mussolini's belief that economic self-sufficiency was vital to national security. The sanctions did not have their intended effects, because the Italian government had already begun restricting trade and preparing for autarky. In particular, Italy imposed a severe ban on most imports, and the government sought to persuade consumers to buy Italian-made products. For instance, it launched the slogan "Preferite il Prodotto Italiano" (Buy Italian).^[36] In May of 1935, the government compelled individuals and businesses to turn over all foreign issued securities to the Bank of Italy (Banca d'Italia). On July 15, 1936, the economic sanctions on Italy were lifted, but the Fascists continued to insist on economic isolation. The League of Nations was an international organization founded as a result of the Paris Peace Conference in 1919-1920. ... Headquarters Rome Established 1893 Governor Mario Draghi Central Bank of Italy Website bancaditalia. ...

Throughout the 1930s, the Italian economy maintained the corporatist model that had been established during the Great Depression. At the same time, however, Mussolini had growing ambitions of extending Italy's foreign influence through both diplomacy and military intervention. After the invasion of Ethiopia, Italy began supplying both troops and equipment to the Spanish nationalists under General Francisco Franco, who were fighting in the Spanish Civil War against a leftist government. These foreign interventions required increased military spending, and the Italian economy became increasingly subordinated to the needs of its armed forces. By 1939, Italy had the highest percentage of state-owned enterprises after the Soviet Union.^[37] Francisco Paulino Hermenegildo TeÃ³dulo Franco Bahamonde (4 December 1892â€“20 November[1] 1975), commonly abbreviated to Francisco Franco (pron. ... Combatants Spanish Republic With the support of: Soviet Union[1] Nationalist Spain With the support of: Italy Germany Commanders Manuel AzaÃ±a Francisco Largo Caballero Juan NegrÃn Francisco Franco Gonzalo Queipo de Llano Emilio Mola JosÃ© Sanjurjo Casualties 500,000[2] The Spanish Civil War was a major conflict...

Finally, Italy's involvement in World War II as a member of the Axis powers required the establishment of a war economy. This put severe strain on the corporatist model, since the war quickly started going badly for Italy and it became difficult for the government to persuade business leaders to finance what they saw as a military disaster. The Allied invasion of Italy in 1943 caused the Italian political structure - and the economy - to rapidly collapse. The Allies, on the one hand, and the Germans on the other, took over the administration of the areas of Italy under their control. By the end of the war, the Italian economy had been all but destroyed; per capita income in 1944 was at its lowest point since the beginning of the 20th century.^[38] Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki TÅjÅ Casualties Military dead: 17,000,000 Civilian dead: 33,000... This article or section does not cite its references or sources. ... War economy is the term used to describe the contingencies undertaken by the modern state to mobilize its economy for war production. ... This article or section is in need of attention from an expert on the subject. ...

[edit] Political economy of Nazi Germany

Adolf Hitler regarded economic issues as relatively unimportant. In 1922, Hitler proclaimed that "world history teaches us that no people has become great through its economy but that a people can very well perish thereby", and later concluded that "the economy is something of secondary importance".^[39] Hitler and the Nazis held a very strong idealist conception of history, which held that human events are guided by small numbers of exceptional individuals following a higher ideal. They believed that all economic concerns, being purely material, were unworthy of their consideration. Hitler went as far as to blame all previous German governments since Bismarck of having "subjugated the nation to materialism" by relying more on peaceful economic development instead of expansion through war.^[40] Hitler redirects here. ... To meet Wikipedias quality standards, this section may require cleanup. ... Alternate meanings: See Bismarck (disambiguation). ...

For these reasons, the Nazis never had a clearly defined economic programme. The original "Twenty-Five Point Programme" of the party, adopted in 1920, listed several economic demands (including "the abolition of all incomes unearned by work," "the ruthless confiscation of all war profits," "the nationalization of all businesses which have been formed into corporations," "profit-sharing in large enterprises," "extensive development of insurance for old-age," and "land reform suitable to our national requirements"),^[41] but the degree to which the Nazis supported this programme in later years has been questioned. Several attempts were made in the 1920s to change some of the program or replace it entirely. For instance, in 1924, Gottfried Feder proposed a new 39-point program that kept some of the old planks, replaced others and added many completely new ones.^[42] Hitler refused to allow any discussion of the party programme after 1925, ostensibly on the grounds that no discussion was necessary because the programme was "inviolable" and did not need any changes. At the same time, however, Hitler never voiced public support for the programme and many historians argue that he was in fact privately opposed to it. Hitler did not mention any of the planks of the programme in his book, Mein Kampf, and only talked about it in passing as "the so-called programme of the movement".^[43] The National Socialist Program, also referred to as the 25-point program, was developed to formulate the party policies of, first, the Austrian German Workers Party (or DAP) and was copied later by Adolf Hitlers Nazi party. ... Gottfried Feder Gottfried Feder (January 27, 1883 â€“ September 24, 1941) was an economist, anti-semite and one of the early key members of the German Nazi party. ... Mein Kampf (English translation: My Struggle) is the signature work of Adolf Hitler, combining elements of autobiography with an exposition of Hitlers political ideology of Nazism. ...

Hitler's own views on economics, beyond his belief that the economy was of secondary importance, are a matter of debate. On the one hand, he proclaimed in one of his speeches that "we are socialists, we are enemies of today's capitalistic economic system",^[44] but he was clear to point out that his interpretation of socialism "has nothing to do with Marxian Socialism," saying that "Marxism is anti-property; true Socialism is not."^[45] At a later time, Hitler said: "Socialism! That is an unfortunate word altogether... What does socialism really mean? If people have something to eat and their pleasures, then they have their socialism."^[46] In private, Hitler also said that "I absolutely insist on protecting private property... we must encourage private initiative".^[47] On yet another occasion he qualified that statement by saying that the government should have the power to regulate the use of private property for the good of the nation.^[48] Hitler clearly believed that the lack of a precise economic programme was one of the Nazi Party's strengths, saying: "The basic feature of our economic theory is that we have no theory at all."^[49]

Hitler's political beliefs drew heavily upon Social Darwinism - the view that natural selection applies as much to human society as it does to biological organisms.^[50] However, Hitler's interpretations of this idea produced two separate and almost incompatible conclusions: On the one hand, Hitler believed that history was shaped by a violent struggle between nations and races, and that a nation needed to be united under a strong, centralized state led by an heroic leader in order to succeed in this struggle. On the other hand, Hitler also believed that individuals within a nation battled with each other for survival, and that such ruthless competition was good for the health of the nation, because it promoted "superior individuals" to higher positions in society.^[51] Historians and biographers note some difficulty in attributing the political beliefs of Adolf Hitler. ... This article needs additional references or sources to facilitate its verification. ... Darwins illustrations of beak variation in the finches of the GalÃ¡pagos Islands, which hold 13 closely related species that differ most markedly in the shape of their beaks. ... One of the most influential doctrines in history is that all humans are divided into groups called nations. ... For other uses, see Race (disambiguation). ...

[edit] Pre-war economy: 1933-1939

Before World War II, the Nazis placed non-Nazi professionals in charge of economic policy. Hitler appointed Hjalmar Schacht, a former member of the German Democratic Party, as Chairman of the Reichsbank in 1933 and Minister of Economics in 1934. Dr. Hjalmar Horace Greeley Schacht Dr. Hjalmar Horace Greeley Schacht (22 January 1877 â€“ 3 June 1970) was a German financial expert and Minister of Economics from 1935 until 1937. ... The German Democratic Party, or Deutsche Demokratische Partei (DDP), was founded by leaders of the former Progressive Peoples Party (Fortschrittliche Volkspartei) and the left wing of the National Liberal Party (Nationalliberale Partei) in the early days of the Weimar Republic. ... A 100 Mark banknote issued by the German Reichsbank in 1908 (http://www. ...

At first, Schacht continued the economic policies introduced by the government of Kurt von Schleicher in 1932 to combat the effects of the Great Depression. These policies were mostly Keynesian, relying on large public works programs supported by deficit spending - such as the construction of the Autobahn - to stimulate the economy and reduce unemployment (which stood at 30% in early 1933). There was indeed a major reduction in unemployment over the following years, while price controls prevented the recurrence of inflation. (7 April 1882 â€“ 30 June 1934) was a German general and the last Chancellor of Germany during the era of the Weimar Republic. ... Keynesian economics, or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s. ... Look up Public works in Wiktionary, the free dictionary. ... This article or section does not cite its references or sources. ... It has been suggested that this article be split into multiple articles accessible from a disambiguation page. ... This article or section does not cite any references or sources. ... This article or section does not cite any references or sources. ...

Meanwhile, the Nazis outlawed trade unions and banned strikes. They also directed Schacht to place more emphasis on military production and rearmament. Germany slowly began to recover from the Great Depression, but this recovery was driven primarily by a military build-up. A number of economists, starting with Michal Kalecki, have seen this as an example of military Keynesianism. A trade union or labor union is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment. ... MichaÅ‚ Kalecki (22nd June 1899-18 April 1970) was one of the greatest Polish economist. ... Military Keynesianism is a government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth. ...

In June 1933, the "Reinhardt Program" was introduced. It was an ambitious project for the development of infrastructure; it combined indirect incentives, such as tax reductions, with direct public investment in waterways, railroads and highways.^[52]

The Reinhardt Program was followed by other similar initiatives, with the result that, between 1933 and 1936, the German construction industry was greatly expanded. In 1933 only 666,000 Germans worked in construction; by 1936 the number had gone up to 2,000,000.^[53]

In particular, road construction was expanding at a very rapid pace. This was part of Hitler's war preparations: Germany needed a state-of-the-art highway system in order to be able to move troops and materials quickly. As a side effect, cars and other forms of motorized transport became increasingly attractive to the population. Therefore, the German car industry also experienced a boom in the 1930s.^[54]

In 1936, military spending in Germany exceeded 10% of GNP (higher than any other European country at the time). Military investment also exceeded civilian investment from 1936 onwards. Armaments dominated government expenditures on goods and services.^[55]

The year 1936 also represented a turning point for German trade policy. World prices for raw materials (which constituted the bulk of German imports) were on the rise. At the same time, world prices for manufactured goods (Germany's chief exports) were falling. The result was that Germany found it increasingly difficult to maintain a balance of payments. A large trade deficit seemed almost inevitable. But Hitler found this prospect unacceptable. Thus Germany, following Italy's lead, began to move away from partially free trade in the direction of economic self-sufficiency.^[56]

Unlike Italy, however, Germany did not strive to achieve full autarky. Hitler was aware of the fact that Germany lacked reserves of raw materials, and full autarky was therefore impossible. Thus he chose a different approach. The Nazi government tried to limit the number of its trade partners, and, when possible, only trade with countries within the German sphere of influence. A number of bilateral trade agreements were signed between Germany and other European countries (mostly countries located in Southern and South-Eastern Europe) during the 1930s. The German government strongly encouraged trade with these countries but strongly discouraged trade with any others.^[57]

By the late 1930s, the aims of German trade policy were to use economic and political power to make the countries of Southern Europe and the Balkans dependent on Germany. The German economy would draw its raw materials from that region, and the countries in question would receive German manufactured goods in exchange. Already in 1938, Yugoslavia, Hungary, Romania, Bulgaria and Greece transacted 50% of all their foreign trade with Germany.^[58]

Throughout the 1930s, German businesses were encouraged to form cartels, monopolies and oligopolies, whose interests were then protected by the state.^[59] In his book, Big Business in the Third Reich, Arthur Schweitzer notes that:

As big business became increasingly organized, it developed an increasingly close partnership with the Nazi government. The government pursued economic policies that maximized the profits of its business allies, and, in exchange, business leaders supported the government's political and military goals.^[61]

[edit] Wartime policies: 1939-1945

Initially, the outbreak of World War II did not bring about any large changes in the German economy. Germany had spent six years preparing for war, and a large portion of the economy was already devoted to military production. Unlike most other governments, the Nazis did not increase direct taxes by any significant amount in order to fund the war. The top income tax rate in 1941 was 13.7% in Germany as opposed to 23.7% in Great Britain.^[62]

During the war, as Germany acquired new territories (either by direct annexation or by installing puppet governments in defeated countries), these new territories were forced to sell raw materials and agricultural products to German buyers at extremely low prices. Hitler's policy of lebensraum strongly emphasized the conquest of new lands in the East, and the exploitation of these lands to provide cheap goods to Germany. In practice, however, the intensity of the fighting on the Eastern Front and the Soviet scorched earth policy meant that the Germans found little they could use. On the other hand, a large quantity of goods flowed into Germany from conquered lands in the West. For example, two-thirds of all French trains in 1941 were used to carry goods to Germany. Norway lost 20% of its national income in 1940 and 40% in 1943. ^[63] Lebensraum (German for habitat or living space) was one of the major political ideas of Adolf Hitler, and an important component of Nazi ideology. ... A scorched earth policy is a military tactic which involves destroying anything that might be useful to the enemy while advancing through or withdrawing from an area. ...

Even before the war, Nazi Germany maintained a supply of slave labour. This practice started from the early days of labour camps of "undesirables" (German: unzuverlässige Elemente), such as the homeless, homosexual and criminals as well as political dissidents, communists, Jews, and anyone that the regime wanted out of the way. As the war progressed, the use of slave labour experienced massive growth. Prisoners of war and civilian "undesirables" were brought in from occupied territories. Hundreds of thousands (perhaps millions) of Jews, Slavs and other conquered peoples were used as slave labourers by German corporations such as Thyssen, Krupp, IG Farben and even Fordwerke - a subsidiary of the Ford Motor Company.^[64] By 1944, slave labour made up one quarter of Germany's entire work force, and the majority of German factories had a contingent of prisoners.^[65] Slavery is any of a number of related conditions involving control of a person against his or her will, enforced by violence or other clear forms of coercion. ... A labor camp is a simplified detention facility where inmates are engaged in forced labor. ... This article or section does not cite any references or sources. ... Communism is an ideology that seeks to establish a classless, stateless social organization based on common ownership of the means of production. ... Geneva Convention definition A prisoner of war (POW) is a soldier, sailor, airman, or marine who is imprisoned by an enemy power during or immediately after an armed conflict. ... Distribution of Slavic people by language The Slavic peoples are a linguistic and ethnic branch of Indo-European peoples, living mainly in Europe, where they constitute roughly a third of the population. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... For the U.S. town, see Krupp, Washington. ... IG Farben (short for Interessen-Gemeinschaft Farbenindustrie AG) was a German conglomerate of companies formed in 1925 and even earlier during World War I. IG Farben held nearly a total monopoly on the chemical production, later during the time of Nazi Germany. ... Ford Motor Company is an American multinational corporation and the worlds third largest automaker after Toyota and General Motors, based on worldwide vehicle sales. ...

The proportion of military spending in the German economy began growing rapidly after 1942, as the Nazi government was forced to dedicate more and more of the country's economic resources to fighting a losing war. Civilian factories were converted to military use and placed under military administration. By late 1944, almost the entire German economy was dedicated to military production. At the same time, Allied bombings were destroying German factories and cities at a rapid pace, leading to the final collapse of the German war economy in 1945.

[edit] Political economy of Franco's Spain

In 1933, Jose Antonio Primo de Rivera, son of the former authoritarian Prime Minister, founded a political movement known as the Falange, or "phalanx." The Falange was not successful in the elections of 1936, elections that resulted in the creation of a Popular Front government. 1933 (MCMXXXIII) was a common year starting on Sunday. ... For other people called Jose Rivera, see Jose Rivera José Antonio Primo de Rivera (April 24, 1903–November 20, 1936) was the son of general Miguel Primo de Rivera, who was dictator of Spain from 1923 until 1930. ... 1936 (MCMXXXVI) was a leap year starting on Wednesday (link will take you to calendar). ... Popular Fronts comprise broad coalitions of political and other groups, often made up of oppositioners or left wingers, and often united against particularly stringent circumstances. ...

When conservative elements of Spanish society supported Francisco Franco and the military in his war against the Popular Front, the Falange became associated with Franco's side in that war, and the government that arose from Franco's successes appropriated the ideas and some of the terminology of the Falange, including a nostalgia for the interventionism of Miguel Primo de Rivera. Francisco Paulino Hermenegildo TeÃ³dulo Franco Bahamonde (4 December 1892â€“20 November[1] 1975), commonly abbreviated to Francisco Franco (pron. ... Yoke and Arrows. ... Spanish dictator Miguel Primo de Rivera y Orbaneja Miguel Primo de Rivera y Orbaneja, MarquÃ©s de Estella (Jerez, January 8, 1870 - Paris, March 16, 1930) was a Spanish military official who ruled Spain as a dictator from 1923 to 1930, ending the turno system of alternating parties. ...

One falangist theorist, Federico de Utturia, described the goal of the movement as "to kill the old soul of the liberal, decadent, masonic, materialist and frenchified nineteenth century." ^[1]

During, and after the civil war - Franco and the falange (wich was fusioned by force with many other political movements, many witch where much more conservative than the radically fascist falange after its leader Primo De Rivera was killed by the left-winged popular front at the beginning of the civil war) created a corporative system after the Italian model. Economic liberalism was replaced with economic intervention according to the wishes of the corporations, witch also sat prices and wages. Combined with protectionist policies, and absence of Marshal-help after the war, Spain’s economic growth stagnated after the war. The way the Spanish ran their corporative system, it was even less successful than the Italian experience, and at one point the farmers corporation created a massive lack of bread because they had set the prices to low, thus forcing farmers to abandon bread, and grow other, more profitable goods. The aim of this policy was to make bread accessible to even the poorest among the population - but it worked the other way around, and created a black market.

As in Italy, wages was set by the state in negotiations between officially recognised workers syndicates, and employers-organisations with the state as mediator. Since the workers of Spain had been so tightly involved with the communist and anarchist groups during the civil war, they where very hostile to the falange, and the falange knew it. Because of this, and because the Falange knew that they would not get any support from the workers anyway - they favoured the bosses, and sat workers-wages very low. As a response to this, illegal syndicates was created, and these syndicates organised strikes. Such strikes was specially frequent in the mines of Andalucia. The police cracked down on them, made a lot of arrests - and forced the workers back to work. The falange was a government without popular support, and they made now claim that they had it. It was all held together by the army, and Franco himself admitted this in public.

The popular front had started a land restribution-program before the war. This program forced the wealthy landowners to sell some of their land. The land was bought by the state, and redistributed to poor farmers, many witch now for the first time became land-owners, instead of land-renters. After the civil war, the landowners was given their land back. However, the falange did not have a farmer-friendly economic policy. The state focused mostly one rebuilding and improving the urban centers, giving little support to the countryside.

In 1954, the old policy was abandoned. Free-market reforms where implemented by economic technocrats who where often members of the religious cult Opus Dei, a cult that Franco had started to give special favours. Not only did he give them powerful positions within the ministry of finance and economics, he also gave special favours to Opus Dei students - and this policy lead to some incidents of student protests and uprisings. However, the free market reforms where a huge success, and Spain experienced a massive economic boom known as "the miracle of Spain" that continued until Franco`s death in 1975. During this period, a tourist-infrastructure was developed, and tourism became a important part of the Spanish economy. The corporativist organs from the protectionist years was maintained, but it played now a secondary role. Some claim that the reason for why they continued to exist, and pass some laws and regulations now and than was only in order to create a illusion that the Spanish government and the falange was responsible for the economic growth, and not the hard working Spanish population, and the economic freedom and entrepreneurship allowed by the regime.

After becoming the military leader of the war on communism and anarchism in Spain, Franco forced many political groups that was hostile to each other into a single party, and called it “the falange” because Falange had been the strongest group among them, and because they had the most good looking symbol. The aggression between the different groups of the falange continued even though they where now officaly members of the same party, and at one point it even escalated into physical street-battles between the very conservative and royalist “Carlists” and the radical fascists of the original falange. In order to keep his artificial one-party state together, Franco had some people on both side shot as punishment for not keeping the peace, and to further fuse the different sections of the falange together, he always made sure that people from all the “political families” of the falange had some posts in government, however – the fascists got frustrated, and felt that they did not get the benefit of living in a truly fascist state, even though they had won the war. Franco Spain was something different than fascism from 1954 and beyond. Franco himself was a authoritarian traditionalist rightwinger, and as his grip over politics grew stronger – he turned away from fascism and created a religious, conservative police state based on a free market economy, instead of pursuing the fascist ideal of the wholist, organic state. The government of Augusto Pinochet in Chile was greatly inspired by Franco – and Franco was the first that congratulated Pinochet on his successful military coup in 1973.

A world war 2 veteran that had fought with the blue legion at the east front during the war, and was a falange-member said the following about Franco Spain in the 1960s:

Franco and his politics is not seen as proper fascism by fascists. Instead falanquism, with its main focus on catholisism, and conservativism should be seen as a ideology in its self, a ideology that is inspired by fascism, but is not fascism - the same way that nazism is not fascism, but a offshot inspired by it. Fascism is the original that all these mutations has sprung out from, just as Maoism and Titoism are offshots of classic Marxist-Leninism. This article or section does not adequately cite its references or sources. ... Titoism is a term describing political ideology named after Yugoslav leader, Josip Broz Tito, primarily used to describe the schism between the Soviet Union and Socialist Yugoslavia after the Second World War (see Cominform) when the Communist Party of Yugoslavia refused to take further dictates from Moscow. ... Marxism-Leninism, strictly speaking, refers to the version of Marxist theory developed by Vladimir Lenin; see Leninism. ...

See a work by Stanley G. Payne, Falange. A History of Spanish Fascism Stanford University Press (1961). Leland Stanford Junior University, commonly known as Stanford University (or simply Stanford), is a private university located approximately 37 miles (60 kilometers) southeast of San Francisco and approximately 20 miles northwest of San JosÃ© in Stanford, California. ...

[edit] References

^ Baker
^ Payne; Paxton, Sternhell, et al.
^ DiLorenzo
^ Falk
^ Wolin, Britt
^ Joseph A. Leighton, "Social Philosophies in Conflict", D. Appleton-Century Company, 1937. pp. 32
^ William G. Welk, Fascist Economic Policy, Harvard University Press, 1938. pp. 38-39
^ Henry A. Turner, "German Big Business and the Rise of Hitler", 1985, pp. 61-68
^ "The Doctrine of Fascism". Enciclopedia Italiana. (1932). Rome: Istituto Giovanni Treccani. "[Fascism] affirms the irremediable, fruitful and beneficent inequality of men"
^ Calvin B. Hoover, The Paths of Economic Change: Contrasting Tendencies in the Modern World, The American Economic Review, Vol. 25, No. 1, Supplement, Papers and Proceedings of the Forty-seventh Annual Meeting of the American Economic Association. (Mar., 1935), pp. 13-20.
^ Philip Morgan, Fascism in Europe, 1919-1945, New York Tayolor & Francis 2003, p. 168
^ Tibor Ivan Berend, An Economic History of Twentieth-Century Europe, Cambridge University Press, 2005, p. 93
^ James A. Gregor, The Search for Neofascism: The Use and Abuse of Social Science, Cambridge University Press, 2006, p. 7
^ Alexander J. De Grand, Fascist Italy and Nazi Germany, Routledge, 1995. pp. 47
^ Alexander J. De Grand, Fascist Italy and Nazi Germany, Routledge, 1995. pp. 48-51
^ Britt, Lawrence, 'The 14 characteristics of fascism', Free Inquiry, Spring 2003, p. 20.
^ Salvemini, Gaetano. Under the Axe of Fascism 1936.
^ Alexander J. De Grand, Fascist Italy and Nazi Germany, Routledge, 1995. pp. 57
^ Alexander J. De Grand, Fascist Italy and Nazi Germany, Routledge, 1995. pp. 60-61
^ Carl T. Schmidt, "The corporate state in action; Italy under fascism", Oxford University Press, 1939. pp. 115
^ Sheldon Richman, "Fascism".
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 160-161
^ Patricia Knight, Mussolini and Fascism, Routledge 2003 page 64
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 163
^ Nicholas Farrell, Mussolini: A New Life, Sterling Publishing Company, Inc, 2005, p. 195
^ Patricia Knight, Mussolini and Fascism, Routledge 2003 page 64
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 165
^ Adrian Lyttelton (editor), "Liberal and fascist Italy, 1900-1945", Oxford University Press, 2002. pp. 75
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 166
^ Gaetano Salvemini, "Italian Fascism". London: Victor Gollancz Ltd., 1938.
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 169
^ Carl T. Schmidt, "The corporate state in action; Italy under fascism", Oxford University Press, 1939. pp. 128
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 172
^ Carl Schmidt, "The Corporate State in Action London", Victor Gollancz Ltd., 1939, pp. 153–76.
^ Farrell, Nicholas, Mussolini: A New Life, Sterling Publishing, 2005 page 233
^ William G. Welk, "Fascist economy policy; an analysis of Italy's economic experiment", Harvard University Press, 1938. pp. 175
^ Patricia Knight, Mussolini and Fascism, Routledge (UK), ISBN 0-415-27921-6, p. 65
^ Adrian Lyttelton (editor), "Liberal and fascist Italy, 1900-1945", Oxford University Press, 2002. pp. 13
^ Henry A. Turner, "Hitlers Einstellung", 1976, p. 90-91
^ Henry A. Turner, "German Big Business and the Rise of Hitler", 1985, p. 73
^ Lee, Stephen J. (1996), Weimar and Nazi Germany, Harcourt Heinemann, page 28
^ Henry A. Turner, "German Big Business and the Rise of Hitler", Oxford University Press, 1985. p.62
^ Henry A. Turner, "German Big Business and the Rise of Hitler", Oxford University Press, 1985. p.77
^ Hitler's speech on May 1, 1927. Cited in Toland, J. (1976) Adolf Hitler Garden City, N.Y. : Doubleday Speech. May 1, 1927. p. 224
^ Francis Ludwig Carsten, The Rise of Fascism, University of California Press, 1982, p. 137. Hitler quote from Sunday Express.
^ Henry A. Turner, "German Big Business and the Rise of Hitler", Oxford University Press, 1985. pg 77
^ A private statement made by Hitler on March 24, 1942. Cited in "Hitler's Secret Conversations." Translated by Norman Cameron and R.H. Stevens. Farrar, Straus and Young, Inc. 1953. p. 294
^ Richard Allen Epstein, Principles for a Free Society: Reconciling Individual Liberty With the Common Good, De Capo Press 2002, p. 168
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 78
^ Adolf Hitler, "Mein Kampf", vol. 1, chapter 11.
^ Henry A. Turner, "German Big Business and the Rise of Hitler", 1985, p. 76
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 83
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 84
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 83-84
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 85
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 86
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 101
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 102
^ Arthur Schweitzer, "Big Business in the Third Reich", Bloomington, Indiana University Press, 1964, p. 265
^ Arthur Schweitzer, "Big Business in the Third Reich", Bloomington, Indiana University Press, 1964, p. 269
^ Arthur Schweitzer, "Big Business in the Third Reich", Bloomington, Indiana University Press, 1964, p. 288
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 114
^ Hans-Joachim Braun, "The German Economy in the Twentieth Century", Routledge, 1990, p. 121
^ Sohn-Rethel, Alfred Economy and Class Structure of German Fascism, CSE Books, 1978 ISBN 0-906336-01-5
^ Michael Thad Allen, "The Business of Genocide", The University of North Carolina Press, 2002. p. 1

The first volume of the Enciclopedia Italiana di scienze, lettere ed arti or Italian Encyclopaedia of Science, Letters, and Arts was published in 1925. ... Nickname: Motto: SPQR: Senatus Populusque Romanus Location of the city of Rome (yellow) within the Province of Rome (red) and region of Lazio (grey) Coordinates: Region Lazio Province Province of Rome Founded 21 April 753 BC Government - Mayor Walter Veltroni Area - City 1,285 kmÂ² (580 sq mi) - Urban 5...

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