Fascism and Economic Policy

Fascism lacks a distinct economic ideology and central planning, and economic decisions made by fascist leaders cannot be explained within a logical economic framework. Fascist movements emphasize a general desire for the economy to strengthen the nation. They followed popular opinion, the interests of their donors, and the necessities of World War II. Typically, fascist governments exercised control over private property without nationalization. Scholars note a close partnership between big business and fascist governments in Italy and Germany, with business leaders supporting the government's political and military goals while receiving policies maximizing their profits.

Fascism and Capitalism

Fascism had a complex relationship with capitalism, supporting some aspects while opposing others. Fascists viewed capitalism as a tool that could be beneficial or not, depending on the circumstances. They aimed to promote what they considered the national interests of their countries and supported the right to own private property and the profit motive. However, they sought to eliminate the autonomy of large-scale capitalism from the state and opposed the perceived decadence and cosmopolitanism of the wealthy, contrasting it with the discipline, patriotism, and moral virtue of the middle class.

Specific Examples

  • In Nazi Germany, public ownership was transferred into the private sector, and some public services were handed over to private organizations, mostly those affiliated with the Nazi Party. The Nazi war economy combined free markets with central planning, described as somewhere between the Soviet Union's command economy and the United States' capitalist system.
  • In Fascist Italy, corporatism was adopted, with a complex partnership between government and business, and a focus on economic productivity and social welfare. Italy also pursued autarky, seeking economic self-sufficiency.

Pre-World War II Economy in Germany

  • Non-Nazi Party professionals were in charge of economic policy.
  • The government employed Keynesian policies, such as public works programs, to combat the Great Depression.
  • Germany slowly recovered from the Great Depression, and there was a major reduction in unemployment.
  • Nazi Germany transferred many companies and services from state ownership to the private sector, while other Western countries moved in the opposite direction.
  • The government increased public spending, leading to the sale of assets to gain funds.

Wartime Policies in Germany

  • The outbreak of World War II did not bring significant changes to the German economy, which had been preparing for war for six years.
  • Germany did not increase direct taxes and relied on the exploitation of occupied territories for resources.
  • Slave labor was employed, with hundreds of thousands of people used as forced laborers by German corporations.
  • Military spending increased, and civilian factories were converted to military production.
  • Allied bombings led to the final collapse of the German war economy in 1945.