Italian Liberal Government

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The economic difficulties facing Italy after WWI were the greatest challenge for the Liberal government. To what extent do you agree with this statement? Yes I would agree with this statement to the extent that economic problems did prove to be a challenge to the Liberal government. However I could argue that other factors facing Italy after the war also caused difficulties and some may even be seen as being of a greater challenge for the government. Economic issues arose after the war, Italy had occurred massive debts throughout the war-time as they had spent 148 billlion Lire which meant they had spent twice as much during the war as they had spent during the previous fifty years. They also owed 85 billion Lire to their allies. This left the government struggling to find ways to make these repayments, which enabled them crippled and unable to build and sustain their own economy. During the war effort the government spent 148 billion Lire whereas between 1861 and 1913 the government only spent 74 billion Lire. This gave Italy a short time benefit as it meant there was more money available for industry such as the car industry, Fiat created and established more vehicles which prove to be a short-term benefit for the industry, increasing production which would in effect increase sales. However it also lead to long-term problems as it meant increasing debt which may later be established difficult to repay, especially since the government were convinced that they were on the winning side and that repayments will be made easy after they had won the war. The government tried to take action in order to reduce their debts by making cuts and this made the Liberal government unpopular which didn't suit them well especially with the election coming up in 1919. After the war the government stopped spending money on wartime industry, which lead to more problems as
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