Economics of fascism facts for kids

The term economics of fascism refers to the economic systems that are used by fascist regimes. In general, Fascist regimes wanted to exert strong control over the economy, but also defend private property; this attitude is generally known as dirigisme. The first cases of dirigisme happened in France. One of the first such movements is known as Colbertisme, after Jean-Baptiste Colbert (1619-1683). Colbert was the chief minister of finances of King Louis XIV of France. The ideas of Social Darwinism had a strong influence on Fascist regimes: Some people and enterprises did better than others; those that did better needed the support of the state, those that did not do as well, needed to be eradicated. Since most Fascist regimes were also influenced by racist ideas, the general tendency was to support the companies of the people of the "better" race. Gaetano Salvemini, an Italian historian said in 1936 that fascism made taxpayers responsible to private enterprise, because "the State pays for the blunders of private enterprise... Profit is private and individual. Loss is public and social." Fascist governments encouraged the pursuit of private profit and offered many benefits to large businesses, but they demanded in return that all economic activity should serve the national interest.