Economic Systems of Fascism: Corporatism and Corporative Philosophy
Introduction to Fascism and Economic Systems
Fascism, with its distinctive blend of authoritarianism and nationalism, has often been associated with unique economic policies. Central to these policies is the concept of corporatism, a system where management of economic sectors is controlled by government or private organizations. This article explores the economic systems of fascism, particularly focusing on the corporatist philosophy of Italian Fascism and its influence across various regimes.
The Hitler-Porsche Case Study
A prime example of the corporatist economic policies under fascism can be seen during the Nazi regime. When Hitler demanded that Ferdinand Porsche build the 'people's car' (Volkswagen) for 600 reichsmarks, Porsche initially balked at the audacious price. The Courageous Hitler fiercely countered, emphasizing the stakes or the consequences of non-compliance. Despite the difficulty in meeting this demand, Porsche ultimately agreed, leading to a series of actions that illustrate the corporate control and economic mobilization central to fascist policy.
Step 1: Selling the car to the German people for pre-payment.
Step 2: Development of the car.
Step 3: Seizure of cars for war use, delaying public release until 1948. The final sale to the public was delayed until after World War II due to the war's exigencies.
Benjamin Franklin’s View on Wealth
The concept of acquiring wealth through various means, such as robbery, commerce, and agriculture, brought to mind by Benjamin Franklin, reflects the diverse approaches to economic control seen in fascist regimes. However, Franklin’s view that agriculture was the "only honest way" of wealth creation contrasts starkly with the corporatist policies of fascism, which emphasized control and centralization.
Italian Fascism and Corporatism
One of the most prominent examples of corporatism under fascism is Italian Fascism, orchestrated by Benito Mussolini's regime. Mussolini's government advocated a corporatist political system where employers and workers, with the support of the state, managed the economy. This was theoretically designed to create harmony among different social classes through negotiation and coordination.
As Alfredo Rocco, a prominent Italian fascist theorist, explained, the corporatist state aimed to ensure that the needs of workers and employers were met through a 'guild or corporative system'. While Mussolini’s vision suggested that corporatism could achieve a balance and bring about a 'miraculous' increase in national wealth through organized cooperation, scholars note that corporatism often served to reduce opposition and reward political loyalty.
Corporatism in Other Regimes
Corporatism was not exclusive to Italian Fascism. It influenced other authoritarian regimes, both Catholic and non-Catholic.
Other Regimes: Examples include Engelbert Dollfuss in Austria, António de Oliveira Salazar in Portugal, and Konstantin Pts and Kārlis Ulmanis in non-Catholic Estonia and Latvia. In Portugal, Salazar established a corporatist state in the 1930s, which became known as 'catholic corporatism' due to its foundations in the Catholic Church.
Notably, Oswald Mosley of the British Union of Fascists also supported corporatism, advocating for a move away from laissez-faire economics. Despite the diverse geographical and ideological influences, these fascist regimes shared a common characteristic: a centralization of political and economic power with a strong emphasis on state control and mobilization.
Contrasting Views within Fascist Regimes
While corporatism offered a top-down approach to state control over the economy, some regimes also drew from grassroots movements. The Catholic Church’s approach to corporatism, for example, emphasized bottom-up cooperation at the local level, contrasted with the Mussolini regime's more centralized control.
During World War II, many fascist and corporatist regimes adopted autarkic policies, focusing on self-sufficiency and economic isolation. This policy was particularly prominent in Nazi Germany, where the state managed the economy to prepare for and sustain the war effort.
In conclusion, the economic systems of fascism, particularly corporatism, were complex and multifaceted. While theoretically designed to bring harmony and efficiency, these policies often resulted in a centralized and heavily controlled economy, reflecting the broader authoritarian tendencies of fascist regimes.