Read the following passage and answer the question given below: Fascist…
2023
Read the following passage and answer the question given below:
Fascist economics places itself between free-market capitalism and communism. It criticizes free-market capitalism because it prioritizes profit over collective purposes, encourages speculation, and financial manipulation, which is akin to usury. In this, they expressed a high degree of agreement with the communist view that the capitalist class has exploited labor and is insensitive to changing market conditions. However, they disagreed on the solution. Communists suggested the control of the means of production by the working class and the subsequent dictatorship of the proletariat as a solution to the crisis of capitalism, whereas fascism instead chose the option of resolving class conflicts between labor and capital through state mediation and corporate control over the economy. Corporatism is the principle and method of organizing corporate entities under state-subordinate 'corporations'. These corporations would act as organs of political consultation and would take responsibility for supervising personnel and activities within their jurisdiction. It rejected the communist egalitarianism. It can be described as a modern form of feudal guilds. In this way, corporatism maintained the feudal social systems and hierarchies and incorporated modern industrial methods that were financially favorable for the military competition and arms race.
Another aspect where fascist and communist economies were similar was the emphasis on usury laws. Both considered interest taken on loans as exploitative and immoral. This reinforced a world view that saw sectors like agriculture and industry as value-creating sectors and saw finance as a sector based on manipulation and trickery.
Given below are two statements:
Statement I: The communist solution to capitalism was that the means of production should be controlled by the proletariat.
Statement II: The fascist solution to capitalism was Corporatism.
In the light of the above statements, choose the most appropriate answer from the options given below:
- A.
Both Statement I and Statement II are correct
- B.
Both Statement I and Statement II are incorrect
- C.
Statement I is correct, but Statement II is incorrect
- D.
Statement I is incorrect, but Statement II is correct
Attempted by 3 students.
Show answer & explanation
Correct answer: A
Statement I is correct as the passage states Communists suggested 'control of the means of production by the working class' and a 'dictatorship of the proletariat.' Statement II is correct because fascism chose 'corporate control over the economy,' defined in the text as Corporatism. Thus, both statements are supported by the passage.