State Capitalism - Use By Italian Fascists

Use By Italian Fascists

On economic issues, Italian Fascist leader Benito Mussolini claimed in 1933 that, were Fascism to follow the modern phase of capitalism, its path would "lead inexorably into state capitalism, which is nothing more nor less than state socialism turned on its head. In either event, the result is the bureaucratization of the economic activities of the nation." Mussolini claimed that capitalism had degenerated in three stages, starting with dynamic or heroic capitalism (1830–1870) followed by static capitalism (1870–1914) and then reaching its final form of decadent capitalism, also known as supercapitalism beginning in 1914.

Mussolini denounced supercapitalism for causing the "standardization of humankind" and for causing excessive consumption. Mussolini claimed that at this stage of supercapitalism " is then that a capitalist enterprise, when difficulties arise, throws itself like a dead weight into the state's arms. It is then that state intervention begins and becomes more necessary. It is then that those who once ignored the state now seek it out anxiously." Due to the inability of businesses to operate properly when facing economic difficulties, Mussolini claimed that this proved that state intervention into the economy was necessary to stabilize the economy.

Mussolini claimed that dynamic or heroic capitalism and the bourgeoisie could be prevented from degenerating into static capitalism and then supercapitalism only if the concept of economic individualism were abandoned and if state supervision of the economy was introduced. Private enterprise would control production but it would be supervised by the state. Italian Fascism presented the economic system of corporatism as the solution that would preserve private enterprise and property while allowing the state to intervene in the economy when private enterprise failed.