World Economy and Fascism

Chapter 1: Introduction

• Benito Mussolini was the leader of Italy.
• Two major types of economies exist:
  • Market Economy: Driven by supply and demand (e.g., The US).
    • Decisions are influenced by the market.
    • High demand leads to raised prices; low demand leads to lowered prices.
    • Few workers lead to higher wages; many workers allow for lower wages.
  • Command Economy: The government makes all decisions.
    • Examples include socialism and communism.

Socialism vs. Communism:

• Socialism:
  • The government owns, controls, and manages major industries (means of production). Examples include oil, telephones, airports, coal mines, and hydroelectric dams.
  • Private ownership still exists (e.g., small businesses, farms).
• Communism:
  • The government owns and manages everything.
  • No private ownership at all; the government controls where you work, how much you get paid, and what you produce.
  • Example: Edward Bellamy's world where the government controls everything.
• Capitalism:
  • Almost everything is privately owned; opposite of communism.

Fascism:

• A new system represented by leaders like Mussolini.
• Often used as a negative label, but most people don't know what it means.
• A blend of market and command economies.
  • The government makes the decisions, determining what is produced, how much, and wages.
  • Everything is privately owned.

Chapter 2: World War

• Fascism involves government management of the economy with private ownership.
• Characteristics of Fascism:
  • Militarism: A large buildup and glorification of the military.
  • Racism: Present in some fascist regimes (e.g., Nazi Germany) but less so in others (e.g., Italy, Japan).
• Germany was angry after World War One because they were blamed and had to pay reparations.
  • Hitler wanted to retaliate against the countries that