The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-07-09
Liberal Viewpoint
by DR.. HARRY ELMER BARNES

HITLER and Mussolini are the playboys Of
Il Europe. Some doubt is expressed about the
wisdom and solidity Of the Hitler regime but
there is a very general impression that Fascism
| in italy has done wonders for the country and
that the Italian economy is in relatively stable
and prosperous condition.
| This is a very important question, in the light
of the fact that if the New Deal fails in this
country We might have our own fling at Fascism.
We may estimate our own possible prospects
under this regime by investigating what it has
done for Italy.
On this subject there is a very striking article
in Current History. by Mr. Hugh Qugley, en-
titled, "Fascism Fails italy" Mr.. Quigley is not
a radical who wishes to expose Fascism. He is
no John Strachey with a Communist thesis to
support. Quite the contrary, he is a hard-boied
business man and statistical expert from Great
Britain who knows Italian conditions on the
| basis Of prolonged frst-hand studies.
The picture he presents differs sharply from
| the rosy accounts which most of us have be-
come accustomed to accepting as facts. AS he
puts it: The picture given by Fascist italy on
the economic side bears little resemblance to
what has been described so sedulously by pro-
tagonists of the Mussolini regime"
| THE whole economic and financial program
l. of Fascist Italy has been based upon per-
sstent policy of rigorous def1aton. The results
are, to say the least no talking point for the
def1ationist platform.
There has been decisive and persistent de-
cline in the volume of currency in circulation
from 81 900 900 900 Ira in 1925 to 12700 900 900
| Ira at the beginning of March, 1884 Bankrupt
cies have increased from l 1876 in 1921 to 81 308
| in 1888. Wages have declined steadily so that
under Fascsm labor is worse paid than in al
most any other European country" Unemploy-
ment has grown until at the beginning Of 1884
the number of unemployed workers was esti-
mated as between 900 and 100000.
Much has been made of the fact that Musso-
lini was able to balance the budget, but since
1890 this has not been true The deficit for the
fiscal year 1884 will be more than 5000 900 900
Ira. At the same time, the national debt of
Italy, both long term and floating, has increased
greatly, while the national income has dropped
from over 100000 100000 Ira in 1929 to less than
10000 100000 Ira.
THIS has been paralleled by crushing taxa
il ton Something more than half the total
national income is taken over by the state in the
form of taxation. Mr.. Quigey summarizes this
phase of the economic picture as follows:
THE net effect of defation has been, conse-
quently a reduction in the total productive
effort of the country, a reduction in the ma
tional income, reduction in wages, reduction
in export trade, rapid increase in bankruptcies,
a rapid increase in taxation and in the long
term national debt"
Contrary to the general impression, Musso-
lini has not increased the total production of
Italian industries. Ever since 1926 there has
been steady decline in the output of coal, lead
ore, iron and Steel chemicals and silk.
Mussolini was able to increase markedly the
home production Of wheat, but the net result of
this achievement only was to create a great
stock of unsold wheat and to increase the vol
ume of agricultural Unemployment
Trade and commerce has been hit an equally
hard blow The volume of foreign trade has
al 1iro in t0
100000 Ira in 1888, drop to less than third
of the 1925 total.
Mussolini has attempted to compensate for
this by building up closed economic unit in
Italy and trying to found italian prosperity upon
home consumption.
This has failed Though the cost of living has
dropped, wages have dropped even more sharply
and unemployment has increased. Therefore the
total purchasing power of the Italian masses and
their standard of living has declined.