Italy's economy
Before World War 1, Italy`s economy was already generally poor and in addition, it was underdeveloped. They lacked raw materials and a domestic market. It was largely agricultural and had income levels far below the major powers.
Post WW1, the economy made little recovery. In fact, Italy`s economy was suffering substantially from the expenses of the war because they took out foreign loans to pay for the war. In total, Italy`s debt went from $2,929,000,000(two billion nine hundred and twenty nine million) to $6,918,000,000(six billion nine hundred and eighteen million). Unemployment rates increased because of the demobilization of troops and the new law from the US restricting the entry of immigrants. Now the troops back from the war had no jobs and the people could not emigrate to the US to find jobs. Discontented, workers and peasants went on strikes and riots. Also, tourist and export trade came to a standstill.
Inflation, when a country`s form of currency starts to lose value, added to their economic distress. The lira, Italy`s form of currency at that time, was worth one fifth of its value pre-WW1. Thus, the price of goods also increased. Overall, the dismal conditions of the Italy stirred unrest among the people and their trust in the government.
Post WW1, the economy made little recovery. In fact, Italy`s economy was suffering substantially from the expenses of the war because they took out foreign loans to pay for the war. In total, Italy`s debt went from $2,929,000,000(two billion nine hundred and twenty nine million) to $6,918,000,000(six billion nine hundred and eighteen million). Unemployment rates increased because of the demobilization of troops and the new law from the US restricting the entry of immigrants. Now the troops back from the war had no jobs and the people could not emigrate to the US to find jobs. Discontented, workers and peasants went on strikes and riots. Also, tourist and export trade came to a standstill.
Inflation, when a country`s form of currency starts to lose value, added to their economic distress. The lira, Italy`s form of currency at that time, was worth one fifth of its value pre-WW1. Thus, the price of goods also increased. Overall, the dismal conditions of the Italy stirred unrest among the people and their trust in the government.
©Jineava To