Fascism and Big Business

Chapter 1 – Big Business Finances Fascism

Fascism did not rise to power as a spontaneous or grassroots movement of the downtrodden. At its core, it was a reactionary force nurtured and funded by big capital to crush the rising power of the working class. In both Italy and Germany, fascist parties were lifted into power by the active support of the industrial and financial elite who saw in them a blunt instrument to suppress socialism, destroy trade unions, and secure their economic dominance.

Italy: Capitalists Back Mussolini

In post–World War I Italy, the ruling class faced a wave of worker uprisings and factory occupations during the so-called Biennio Rosso (1919–1920). The socialist and communist parties had gained mass support, and the specter of revolution haunted the Italian elite. Fearing the loss of their property and power, landowners and industrialists turned to the fascist movement led by Benito Mussolini.

At first a fringe group, Mussolini’s movement found rapid growth through the formation of fascist paramilitary squads—the squadristi—that attacked socialist organizations, burned union halls, and assassinated labor leaders. These squads were openly financed and armed by landowners and manufacturers who considered them more effective than the state itself in crushing worker resistance.

Organizations like the General Confederation of Industry and large financial interests such as the Banco Commerciale Italiano were instrumental in channeling funds to Mussolini’s movement. By 1922, with the backing of major industrialists and conservative elites, Mussolini marched on Rome and seized power with the king’s approval—not through a popular revolution, but through elite negotiation and pressure.

Germany: The Role of Heavy Industry and Finance

In Germany, the rise of the Nazi Party followed a similar path. After the economic collapse of the 1920s and the Great Depression, Germany was gripped by mass unemployment and political polarization. The working class gravitated toward the socialist and communist parties, which alarmed the capitalist class.

Initially, big business was skeptical of Hitler, viewing him as a demagogue with a ragtag following. But after 1930, as Hitler’s popularity surged and the Communist Party gained strength, industrial magnates like Fritz Thyssen and the Krupp family saw in the Nazi Party a savior. Thyssen, in particular, became a major financial backer, directing vast sums to the party.

In January 1933, Hitler was appointed Chancellor through a backroom deal orchestrated by conservative elites and industrialists who believed they could control him. Once in power, the Nazis quickly outlawed the Communist and Social Democratic parties, destroyed the trade unions, and arrested thousands of labor leaders—all to the benefit of big business.

Fascism as Capitalism’s Lifeboat

Guérin emphasizes that fascism was not imposed by an angry proletariat but ushered in from above. It was a conscious choice by the ruling class to abandon parliamentary democracy in favor of authoritarian rule, provided it protected property, profits, and privilege

The Middle Class Crisis

The early 20th century saw the steady decline of the traditional middle classes. Economic modernization and the rise of monopolies rendered many small businesses and professions increasingly obsolete. The inflation that followed World War I—especially in Germany—wiped out savings, while the Great Depression further destabilized this group.

This decline did not push the petty bourgeoisie toward socialism. On the contrary, it made them acutely afraid of the rising power of the working class. They feared proletarianization—the loss of independence and descent into wage labor.

Fascism’s Middle-Class Appeal

Fascist movements offered the middle classes both ideological comfort and economic promises. Fascist leaders posed as protectors of small property, moral values, and national order. They presented themselves as saviors who would crush both corrupt plutocrats and dangerous Marxists. Guérin emphasizes that fascist propaganda spoke the language of the anxious middle class—calling for national revival, hard work, discipline, and a restoration of social hierarchy.

The chapter illustrates how fascist demagogues manipulated middle-class frustrations. In Italy, Mussolini attracted urban professionals and rural notables who felt threatened by land reforms and socialist unions. In Germany, Hitler’s early support came from small-town citizens devastated by hyperinflation and left behind by industrial modernity.

The Peasantry and Rural Mobilization

In addition to urban petty bourgeois groups, fascism found fertile ground in the peasantry—especially in rural areas where conservative values and fear of socialist land reform were strong. Fascist paramilitary groups promised protection against leftist uprisings and land seizures.

However, the alliance was based more on fear and resentment than real economic benefit. Once in power, fascism served big landowners far more than small farmers.

The Role of Precarity and Nationalism

National humiliation—after Versailles in Germany or the failures of liberalism in Italy—deepened the middle class’s sense of betrayal and longing for strong leadership. Fascism played on these emotions, combining nationalistic rhetoric with promises to restore dignity and prosperity to the “forgotten” classes.

Ultimately, Guérin argues, fascism channeled middle-class discontent into support for a regime that preserved capitalism and destroyed any chance of working-class power.

The Cult of the Leader

At the center of fascist mysticism was the charismatic leader, portrayed as a “man of destiny” who embodied the will of the nation. Mussolini was styled as the savior of Italy, and Hitler as the embodiment of the German Volk. Their images were omnipresent: in schools, offices, homes, and public spaces. This personalization of power provided psychological reassurance in a time of crisis.

Fascist leaders presented themselves as infallible, beyond the reach of political debate. They claimed to stand above party and class interests, channeling a divine or historic mission to restore greatness. Through oratory, visual propaganda, and ceremonial displays, they became living myths.

Nationalism as Faith

The nation under fascism became sacred. Fascism rejected internationalism and universal values in favor of blood-and-soil patriotism, turning the state into a quasi-religious entity. Sacrifice for the nation was glorified, and enemies of the state were treated as heretics.

Guérin shows how fascism replaced class struggle with national unity. The proletariat was not to fight capitalism, but to submit to the interests of the nation. Nationalism became the ideological glue that justified all repression in the name of order and unity.

Symbolism, Ritual, and Pseudo-Religion

Fascist mysticism employed a symbolic language that mimicked religious practices. Mass rallies, uniforms, salutes, oaths, marches, and torchlit ceremonies created a collective experience of belonging and euphoria. The party was portrayed as a sacred brotherhood, and the leader as its high priest.

This theatrical and emotional dimension was crucial in appealing to people disillusioned with liberal democracy. Guérin underlines that fascism did not appeal to reason or policy—it appealed to myth, identity, and fear.

The Psychological Function of Mysticism

Fascist mysticism provided an outlet for insecurity, disorientation, and despair. It gave the petty bourgeoisie and other unstable social elements a sense of purpose and superiority. By externalizing blame onto scapegoats (Jews, Marxists, foreigners), fascism created a cathartic release of social anxiety.

This manipulation of myth and emotion allowed fascist regimes to mask their class allegiances and avoid rational critique. Mysticism was not decorative—it was essential to the functioning of fascist power.

The Use of Armed Force and Paramilitaries

Fascist movements built private armies—the Blackshirts in Italy, the SA (Stormtroopers) in Germany—to physically crush the workers’ movement. These groups engaged in systematic terror: breaking up strikes, burning down union offices, assassinating left-wing leaders, and intimidating opposition parties.

Guérin underscores how the state allowed—often encouraged—these actions. Liberal governments turned a blind eye as fascists attacked socialists and communists. This passive complicity helped pave the way for fascist coups, as the bourgeoisie saw in fascist violence a bulwark against proletarian revolution.

The Illusion of Legality

Fascists maintained the appearance of legality to avoid alienating moderate conservatives and the general public. Mussolini’s March on Rome was not a genuine armed uprising but a theatrical show of force that pressured the king to appoint him prime minister. In Germany, Hitler used legal means—elections, negotiations, constitutional loopholes—to seize power, all while preparing for dictatorship behind the scenes.

The chapter emphasizes that the real conquest of power was not revolutionary, but a transfer of power by traditional elites who believed they could control fascism and use it to preserve capitalism. Guérin refers to this as the “abdication of the bourgeoisie.”

Support from the Conservative Establishment

Big business, the military, monarchists, and Catholic hierarchies all came to support fascism—not despite its brutality, but because of it. Fascism promised to restore order, crush Marxism, and ensure a disciplined labor force. This won over influential allies who helped the fascists gain legitimacy.

In Germany, Hitler’s rise was facilitated by industrialists like Fritz Thyssen, generals like von Papen, and conservative politicians who thought they could use him as a tool. They underestimated his ambition and willingly handed him the reins of state.

Propaganda and Psychological Warfare

Fascists also made heavy use of modern propaganda techniques, creating a sense of inevitability around their victory. They exploited mass discontent, national humiliation, and fear of communism to position themselves as the only alternative to chaos.

Guérin shows how fascist strategy combined brutality and propaganda, chaos and order, to manipulate public perception while negotiating quietly with the ruling class.

The Illusion of Doctrine

Fascist leaders frequently spoke of their “ideals”—national rebirth, social unity, hierarchy, discipline—but these were vague slogans, not policies. Mussolini, who began his political life as a socialist, reinvented himself multiple times. Hitler, in Mein Kampf, laid out racist and expansionist visions, but these did not form a practical program. Their statements were contradictory, shifting depending on the audience.

Guérin argues that fascism’s primary function was not ideological but functional: it existed to destroy working-class power and preserve the capitalist order during a period of systemic crisis.

Fascism as a Political Technique

Rather than a philosophy, fascism was a technique of power—a flexible means to achieve authoritarian rule in service of the elite. It could co-opt symbols of the left (e.g., red flags, “revolutionary” language) or draw from the right (nationalism, militarism, religion), as long as it mobilized support and crushed opposition.

This elasticity made fascism effective. It could present itself as anti-capitalist to workers, pro-capitalist to industrialists, traditionalist to conservatives, and revolutionary to disillusioned youth. Guérin emphasizes that fascism’s doctrinal incoherence was a strength, allowing it to build a wide but deceptive coalition.

A Doctrine of Authority and Submission

While lacking programmatic coherence, fascism consistently promoted a vision of absolute authority—whether in the state, the workplace, or the family. Individual liberty was sacrificed to the nation, debate was replaced by decree, and social hierarchy was deemed natural and sacred.

Fascist “doctrine,” insofar as one existed, was centered on anti-democracy, anti-Marxism, and anti-liberalism. It rejected both the class struggle and the rule of law, favoring a top-down command structure under a charismatic leader.

Anti-Intellectualism and Emotional Appeal

Fascism prided itself on action over theory, instinct over reason. Guérin points out that fascist movements ridiculed intellectuals, glorified violence, and celebrated irrational will. This disdain for coherent ideas was not a flaw but a feature—fascism offered identity, belonging, and power, not analysis or policy.

The chapter concludes that fascism succeeded not because of what it believed, but because of what it destroyed. Its “doctrine” was a smokescreen that concealed its real mission: the protection of capital by means of dictatorship.

Abolishing Labor Autonomy

Fascist governments dismantled all institutions that enabled worker representation. Free trade unions were abolished, union leaders were jailed or murdered, and strikes were outlawed. Collective bargaining was replaced by state-imposed labor discipline, enforced through fear, surveillance, and violence.

In Italy, the fascist state imposed the “corporate system,” in which workers and employers were supposedly united under state-sponsored syndicates. In reality, these bodies were dominated by employers and loyal fascists, erasing any real power for labor. Similarly, in Nazi Germany, the German Labor Front replaced unions with a massive propaganda machine and compulsory obedience.

Terror as a Tool of Industrial Order

Guérin shows that fascist labor policy relied not only on propaganda but also on terror. Workers who resisted were imprisoned, beaten, or sent to concentration camps. Any form of labor activism was treated as treason. The workplace became a militarized space where obedience was demanded as a patriotic duty.

Mass arrests of communists, socialists, and union militants took place in the early days of both regimes. Fascist regimes understood that the proletariat was the greatest threat to their alliance with big capital, and preemptively crushed its capacity to organize.

Forced Labor and Militarized Workforces

In both Italy and Germany, economic plans involved forced or semi-forced labor, especially in preparation for war. Guérin describes how fascist regimes used vast infrastructure projects (such as highways and rearmament) to mask unemployment and conscript the working class into submission.

In Germany, this involved conscription into the Reich Labor Service, while in Italy, youth were indoctrinated from early schooling to accept labor as a patriotic duty. Wages were frozen, working hours lengthened, and any grievance was seen as sabotage.

The Destruction of Class Consciousness

The ultimate aim of fascist labor policy was not only repression but psychological domination. Fascism replaced the concept of the working class with the myth of a “national community.” Class differences were denied, and the worker was told he belonged to a greater whole—the nation, the race, the destiny of the fatherland.

This ideological smokescreen allowed fascism to deepen economic exploitation while masking class rule. Guérin argues that this was capitalism’s last resort: to maintain its dominance by replacing class solidarity with nationalist obedience.

The “Corporate State” in Italy

In Mussolini’s Italy, the hallmark of economic policy was the creation of a corporate state, meant to mediate between labor and capital through fascist-controlled syndicates. Theoretically, it presented a third way between capitalism and socialism, promising harmony between classes. In practice, it smashed workers’ power and strengthened employer control.

Corporations in this context were not companies but state-imposed councils representing industries. However, these were staffed overwhelmingly by employers and fascist appointees, rendering any worker voice meaningless. The corporate state thus became a façade for maintaining capitalist rule under totalitarian control.

German Autarky and Rearmament

In Nazi Germany, economic policy revolved around autarky (economic self-sufficiency) and massive rearmament. Public works (like the Autobahn) masked unemployment, but the real engine was the arms industry. Hitler’s Four-Year Plan (1936) accelerated rearmament, expanded war production, and subordinated the entire economy to military goals.

Big industrialists—such as Krupp, IG Farben, and Thyssen—received enormous contracts and unprecedented state support. Far from limiting capitalism, the Nazi regime removed all labor obstacles and offered secure profits through state planning and militarization.

Monopoly Capital Thrives

Guérin highlights that fascist regimes strengthened monopolies. Cartels and trusts flourished, and small businesses, despite fascist promises to protect them, continued to be absorbed or destroyed by large enterprises. Economic centralization increased, but it was not socialized—it remained in private hands, merely overseen and protected by the state.

Fascism eliminated the market’s democratic constraints—unions, political debate, strikes—allowing capitalists to accumulate wealth without resistance. Tax breaks, subsidies, and guaranteed orders flowed to the biggest firms, while working-class consumption stagnated.

A Controlled Economy Without Socialism

Guérin makes clear that fascist economic policy combined statism with inequality. Though the state took an active role in planning and regulation, this did not mean redistribution or social justice. On the contrary, the state’s function was to ensure stability and profit for the owning class.

Fascism demonstrated that state intervention and capitalism could coexist, so long as the state served capitalist interests. This dispels the myth that planning is inherently socialist—fascist planning meant greater exploitation, not emancipation.

Myths of the Land and Peasantry

Fascism glorified rural life as the soul of the nation. Slogans like “Blood and Soil” in Nazi Germany or Mussolini’s rhetoric about returning to the soil framed agriculture as the spiritual core of national identity. This ideology romanticized peasant virtues—order, discipline, sacrifice—and sought to idealize the countryside as a space of purity and tradition.

But these were myths crafted for propaganda. Guérin argues that the regimes had no real intention of redistributing land or empowering smallholders. Instead, these narratives were used to mobilize rural populations and suppress class consciousness.

Italy’s Land Reforms: A Charade

Mussolini launched several initiatives to reclaim land (such as the Pontine Marshes project) and presented them as land reform victories. However, these projects were limited in scope, more about visibility than substance. The large agrarian bourgeoisie retained their power, and sharecroppers remained tied to exploitative systems.

The fascist regime promised the creation of a vast class of small landowners, but failed to deliver. Guérin shows that the state was unwilling to challenge the landed aristocracy, instead favoring their economic and political influence in the countryside.

Germany’s Agrarian Policies

In Nazi Germany, agricultural policy was based on similar contradictions. The Reich Food Estate centralized control over agriculture and imposed strict production quotas, price controls, and state purchasing. Small farmers were given ideological praise but very little practical support.

Guérin emphasizes that German agricultural policy froze rural class structures. Large landowners (Junkers) were preserved as the dominant force, while small farmers were burdened with debt, bureaucracy, and increasing obligations to the state.

Moreover, the Nazi regime was deeply concerned with racial purity in rural areas. Farmers were seen as racial stock to be preserved and multiplied—another tool of fascist biopolitics, not economic reform.

Peasants as Tools, Not Partners

Fascist regimes viewed the rural population instrumentally—as a reservoir of loyalty, military recruits, and racial purity. While workers were terrorized into submission, peasants were ideologically co-opted. Yet they received few tangible benefits. There was no genuine rural emancipation—only control.

Guérin concludes that agricultural policy under fascism served the same function as industrial policy: to stabilize capitalism, maintain existing class hierarchies, and provide the regime with ideological cover and manpower. The promised agrarian revolution was a mirage.