Explain why you agree or disagree with the view that between 1925 and 1939 Mussolini's economic policies were very successful.
Published: March 19, 2017
Mussolini gave subsidies to the industries due to this the production of iron and steel doubled by 1930, artificial silk production rose by 10 times and by 1937 hydroelectricity production doubled.
The Battle of Lira, in which Mussolini undertook devaluation of Lira. The reduction of value of Lira against Pound Sterling in 1926 had mixed reactions by the industries. Chemical and steel industries benefited by cheaper imports and other industries suffered due to high cost of exports. As a result there was reduction in wages by 10-20% that too before the Great Depression.
But, there were shortages of raw material and Italy was unable to become self-sufficient in coal, iron and steel and became dependent on Germany to fulfil the demands of raw material for the war. The Great Depression of 1929 had a worse impact. The wages further decreased by 20-40% and unemployment increased. The situation became worse when the workers were not allowed to protest as it was illegal and the devalue of Lira happened much later in 1936. In 1935, there were economic sanctions on Italy due to the invasion of Ethiopia. And banks suffered as the borrowers were unable to repay the loans.