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In the short term, as liberal economies floundered in the early 1930s, fascist economies could look more capable than democracies of performing the harsh task of reconciling populations to diminished personal consumption in order to permit a higher rate of savings and investment, particularly in the military. But we know now that they never achieved the growth rates of postwar Europe, or even of pre-1914 Europe, or even the total mobilization for war achieved voluntarily and belatedly by some of the democracies. This makes it difficult to accept the definition of fascism as a “developmental dictatorship” appropriate for latecomer industrial nations. Fascists did not wish to develop the economy but to prepare for
war, even though they needed accelerated arms production for that.
Fascists had to do something about the welfare state. In Germany, the welfare experiments of the Weimar Republic had proved too expensive after the Depression struck in 1929. The Nazis trimmed them and perverted them by racial forms of exclusion. But neither fascist regime tried to dismantle the welfare state (as mere reactionaries might have done).
Fascism was revolutionary in its radically new conceptions of citizenship, of the way individuals participated in the life of the community. It was counterrevolutionary, however, with respect to such traditional projects of the Left as individual liberties, human rights, due process, and international peace.
In sum, the fascist exercise of power involved a coalition composed of the same elements in Mussolini’s Italy as in Nazi Germany. It was the relative weight among leader, party, and traditional institutions that distinguished one case from the other. In Italy, the traditional state wound up with supremacy over the party, largely because Mussolini feared his own most militant followers, the local ras and their squadristi. In Nazi Germany, the party came to dominate the state and civil society, especially after war began.
Fascist regimes functioned like an epoxy: an amalgam of two very different agents, fascist dynamism and conservative order, bonded by shared enmity toward liberalism and the Left, and a shared willingness to stop at nothing to destroy their common enemies.
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Robert O. Paxton (The Anatomy of Fascism)