Fascism’s Advocacy of Privatisation and Financial Retrenchment

I’ve posted a number of blogs about the way some Conservative propagandists have tried to discredit socialism by claiming that Fascism was a form of it. The argument here is that Fascism advocated the state planning and management of the economy like state socialism, and so therefore must similarly be a form of socialism. For the Libertarians, any state intervention in the economy or industry is automatically attacked as socialism. They demand instead complete free trade and the reduction of the state to an absolute minimum, based on their ideas of 19th century laissez-faire economics. For them, any economic system that is not based on complete free trade and unregulated private industry is socialism, not capitalism. Left-wing commenters, on the other hand, have argued very clearly that this is a very unrealistic idea of capitalism, which has never existed in reality. Mussolini did indeed begin his career as a radical socialist, and Fascism itself emerged from Italian anarcho-syndicalism after the First World War.  However, Mussolini broke with the socialists and forces of the Italian left, to embrace capitalism and the parties and organisations of the right. The Fascists were supported by the rich landowners and the industrialists in their attacks on socialism, trade unions, and the peasant organisations. They were invited into the Italian parliament to join a coalition of right-wing Liberals and eventually merged with the Italian Nationalists. They also rejected, at least initially, state intervention in industry. In government, Mussolini stated that Fascism stood for the economics of the Manchester School, that is, absolute free enterprise.

The Fascists’ Conservative economic stance is clearly seen in their 1921 Party programme. This demanded a system of cuts to uneconomic businesses and public works projects that is very similar to the policy taken towards them by right-wing governments, including New Labour, ever since Margaret Thatcher. And it also declared its support for private industry against state control. In the section ‘Cornerstones of Fiscal Policy and Policies for National Economic Reconstruction’ are the following clauses

1. Balancing state and local budgets (when necessary) by means of rigorous cutbacks to all parasitic or redundant entities and via reductions in expenditures neither crucial to the well-being of the beneficiaries nor justified by more general objectives.
2. Decentralisation of the public administration so as to simplify the delibery of services and to streamline our bureaucracy, without falling into the trap of regionalism (which we firmly oppose).
3. Shielding the taxpayers’ money from misuse by means of the abolition of all state or local government concessions and subventions to consortia, cooperatives, factories, special clienteles, and other entities similarly incapable of surviving on their own and not indispensable to the nation.

….

6. Cessation of policies favoring public works projects that are botched, undertaken for electoral reasons, or supposedly to insure law and order, projects that are unprofitable because of the irregular and fragmentary way in which they are distributed.

….

8. Return to private sector of industries that the state has managed poorly, in particular the telephone system and the railroads. Regarding the latter, competition needs to be enhanced between the major lines, which need, in turn, to be managed differentially with respect to regional and local lines.

9. Abolition of the state monopoly on postal and telegraphic communications so that private enterprise may supplement and eventually replace the state-run service.

The subsequent section, ‘Cornerstones of Social Policy’, begins with a statement of the importance of private property and industry as the fundamental basis of Fascist economic and social policy. This runs

Fascism recognises the social function of private property. At once a right and a duty, private property is the form of management that society has traditionally granted individuals so that they may increase the overall patrimony.

In its opposition to socialist projects for reconstruction that rely upon a dogmatically collectivist model of economics, the National Fascist Party has its feet firmly planted in the soil of our historical and national reality. This reality does not allow for a single type of agricultural or industrial economy. The party, accordingly, supports any and every solution, be it individualistic or any other kind, that will guarantee the maximum level of production and well-being.

The National Fascist Party advocates a regime that would strive to increase our national wealth by unleashing individual enterprises and energies – the most powerful and industrious factor in economic production – and by abolishing, once and for all, the rusty, costly, and unproductive machinery of state-, society -, and municipality-based control. The party thus supports all efforts to enhance Italy’s productivity and to eliminate forms of individual and group parasitism. 

see Jeffrey T. Schnapp, ed., A Primer of Italian Fascism (Lincoln, Nebraska: University of Nebraska Press 2000), 14-15.

Now the Fascist programme did contain elements of Socialism, such as the demands for an eight hour working day, and later in Mussolini’s regime the state ended up owning a sizable part of the Italian economy as it was forced to buy up failing corporations. But even if the regime was forced to go back on its stated policy of allowing failing companies to go to the wall, it still strongly supported private enterprise although subject to considerable state intervention.

It’s very clear from this that, at least at that stage, Fascist economic policy was very similar to the free enterprise economics of Thatcher and Reagan. There’s also a further similarity, in that contemporary politics in both America and Britain is also corporatist. The Italian Fascist economy was supposed to be run by a ‘Chamber of Corporations and Fasces’ in which both representatives of management and the trade unions sat together. In practice the trade unions were strictly controlled by the Fascist state, with the management and proprietors enjoying a far greater degree of freedom. Contemporary Britain and America has a form of corporativism, in that very members of Congress in the US and parliament in Britain are proprietors or senior management of private firms. The parties also receive substantial funding from private corporations, with the result that government policy is framed to benefit private corporate interests, rather than working people.

Unlike Mussolini’s later regime, however, the current right-wing governments haven’t worked out that free trade and an economy based on untrammeled, absolute private industry doesn’t work either. They’re what the Australian economist John Quiggin has described as ‘zombie economics’, because the ideas are dead and should have been discarded long ago, but are still haunting us.

Conservative propagandists are therefore completely wrong. Fascism was pro-capitalist, and supported private enterprise, despite the movement’s left-wing origins and Mussolini’s attempt to return to socialism during the brief period of the Nazi-supported Salo Republic. It is very similar to today’s Conservativism rather than socialism, although the Republicans and Tories haven’t outlawed rival political parties nor tried to replace parliament or congress with a personal dictatorship and corporativist chamber. But Boris Johnson over here and Donald Trump across the pond are sounding more Fascist day by day, as BoJob’s splenetic attack on British MPs ‘collaborating’ with the EU shows.

Tags: Boris Johnson, Capitalism, Civil Service, Congress, Conservatives, Cooperatives, Corporate Donations, Corporativism, Donald Trump, Free Trade, John Quiggin, Management, Municipalisation, Mussolini, Nationalism, Parliament, Postal Service, Private Industry, Railways, State Enterprise, Syndicalism, Taxes, Telephone Industry, World War I