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What real fascism is and how modern economies love it

 



The term fascist has been thrown around for a while now, while most never understand that fascism had a strong economic component. While at first, bowing to the demands of the people and business owners, they tried true capitalism, they moved toward more government control. This is the push that most historians see as the real impact of fascism in Italy. People need to understand how this tyrannical form of government really operated. Here are a few of the ways they changed the Italian nation.

Trade Unions

Most people today are polarized on the issue of unions, but the fascists saw it as the first step in gaining the power they needed to make changes. 1925 and 1926 saw the government taking control of all trade unions and forcing all people to be part of them. At the same time, they banned the ability of workers to strike, because Mussolini saw that the government was now their voice. It also forced businesses to bow to the demands of these unions, which meant they had to follow the government edicts or close. It weakened the socialists of the nation, which Mussolini had issues with from his time as one.

There were some strengths that the business owners still had, but it was more helpful for the larger companies, not the small businesses that are crucial to every economic landscape. Through the right political donations and government bureaucracy, the unions could refuse some of the collective contracts. Smaller businesses were unable to do that, even if the owners were part of the powerful employer syndicates because they didn't have the power. This gave consumers fewer options of where to shop and what they could buy.

Corporate Cartels

The government's endeavor to control the corporations came about because of the Labor Charter of 1927, which started the government wanting corporate cartels. This led to price controls of many products, like people see today in the games industry where the major companies agreed on a price for games. As John Smith talked about in Wealth of Nations, there needs to be competition to allow for the prices to be based on the quality of the product. Even today, look at how this is not how to tell what is the better product. In other words, quite a bit of how the modern economic market operates shows signs of being closer to what Mussolini created than the capitalism preached about by Smith.

Studying the economic changes that Mussolini started implementing shows where the modern economic landscape is. People keep saying the United States is capitalist and would have a hard time proving it to Adam Smith or any of his contemporaries. We have corporate cartels, which in no way is a free market. While the unions are considered private in this nation, consider how often in current times the government and media back the unions in a way that brings disadvantages to companies and consumers.

This is not to say that trade unions are not a good thing, but if they are completely followed, they drive jobs from areas and nations. It becomes cheaper to send the work to nations with less worker protection which kills local economies. Most companies have no issue with giving good benefits to their employees, as it is a good advertisement opportunity. What they don't want to do is pay so much money that they show no profit. Governments want that pay raise, as they can make quite a bit more as people are paid more. Prices go up, so sales tax income rises. Income taxes become more profitable and the workers rise the income tax brackets, meaning more and more money. All this leads to more power for the government, which brings corruption and inflation. A vicious cycle.



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