Economics of fascism facts for kids

The term economics of fascism describes how fascist governments managed their country's money and businesses. These governments wanted to control the economy very strongly. However, they also allowed private businesses to exist and own property. This approach is often called dirigisme.

One of the earliest examples of this kind of strong government control happened in France. It was known as Colbertisme, named after Jean-Baptiste Colbert. He was a chief minister for King Louis XIV of France in the 1600s.

Fascist governments were also greatly influenced by ideas like Social Darwinism. This idea suggested that some people and businesses were naturally stronger. Those stronger ones, they believed, deserved support from the government. Businesses that were not doing well, or were seen as "weaker," might be removed or not supported.

Because most fascist governments also had racist beliefs, they often supported companies owned by people of the "better" race. An Italian historian named Gaetano Salvemini said in 1936 that fascism made taxpayers responsible for private businesses. He explained that "the State pays for the mistakes of private enterprise." He also noted that "profit is private and individual. Loss is public and social."

This means that fascist governments encouraged private businesses to make money. They offered many benefits to large companies. But in return, they demanded that all economic activities should help the country as a whole. If a private business made a profit, the owners kept it. But if the business lost money or made mistakes, the government often stepped in to pay for those losses.

Images for kids

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  People in a Nazi concentration camp doing forced labour.

See also

In Spanish: Economía fascista para niños