Episode Summary:

In this episode of Explaining History, Nick explores the neglected connection between economic austerity and political repression in the early years of Fascist Italy.

Drawing on the groundbreaking work of economist Clara Mattei, we delve into how Mussolini's regime used budget cuts, regressive taxation, and mass layoffs not just to balance the books, but to crush the Italian working class. We examine the "Two Red Years" (Biennio Rosso) that terrified the bourgeoisie and how Fascism was welcomed by liberal elites as a necessary tool to restore order and protect private capital.

From the hiking of third-class rail fares to the slashing of veteran benefits, we unpack how economic policy was weaponized to reverse the democratic gains of the post-WWI era. Was austerity the true engine of the Fascist counter-revolution?

Key Topics:

• Austerity as Repression: How economic policy was used to discipline the working class.
• The Liberal-Fascist Alliance: Why mainstream economists supported Mussolini.
• The Biennio Rosso: The socialist uprising that terrified Italy’s elites.
• The Motto "Nothing for Nothing": De Stefani’s ruthless approach to public spending.

Resources:

• "Austerity and Repressive Politics: Italian Economists and the Early Years of the Fascist Government" by Clara Mattei (Institute of Economics, Scuola Superiore Sant'Anna)

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