Bailout Corporatism


A reader sends along fuller quotes:

“In actual fact, it is the State, i.e. the taxpayer, who has become responsible to private enterprise. In Fascist Italy, the State pays for the blunders of private enterprise. As long as business was good, profit remained to private initiative. When the depression came, the Government added the loss to the taxpayer’s burden. Profit is private and individual. Loss is public and social. In December 1932 a Fascist financial expert, Signor Mazuchelli, estimated that more than 8.5 billion lire had been paid out by the Government from 1923 to 1932 in order to help depressed industries. (Rivista Bancaria, December 15th, 1932, p. 1,007). From December 1932 to 1935 the outlay must have doubled.” [Gaetano Salvemini, Under the Axe of Facism (London: Victor Gollancz LTD, 1936) p. 416]

. . .

“In order to avert the bankruptcy of the big concerns that were on the verge of ruin, the Government created certain public institutes to take over the shares of the rescued companies in question until they were again in a healthy condition. Mussolini described these institutes as “convalescent homes, where organs which have more or less deteriorated come under observation and receive appropriate treatment” (January 13th, 1934). These institutes have been hailed as instruments of a managed economy.” [Ibid, p. 417]


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