Fascism, Its Characteristics, Pros, and Cons with

Examples
Can Fascism Occur in a Democracy?

By Kimberly Amadeo
Updated December 08, 2018

Fascism is an economic system in which the government controls the private entities that own
the factors of production. The four factors are entrepreneurship, capital goods, natural resources,
and labor. A central planning authority directs company leaders to work in the national interest.

In fascism, the national interests supersede all other societal needs. It seeks to restore the nation
to a former pure and vigorous existence.

It subsumes the private person and business into this vision of the good of the state. In its quest
to do so, it is willing to become a "bully," said George Orwell in "What Is Fascism?"

Fascism uses this nationalism to override individual self-interest. It subjugates the welfare of the
general population to achieve imperative social goals. It works with existing social structures,
instead of destroying them. It focuses on "internal cleansing and external expansion," according
to Professor Robert Paxton in "The Anatomy of Fascism." This can justify the use of violence to
rid the society of minorities and opponents.

Fascist movements and regimes are different from military dictatorships and authoritarian
regimes. They seek to enlist rather than exclude the masses. They often collapse the distinction
between the public and private sphere. It eliminates private sector interests by absorbing them
into the public good.

In the words of Robert Ley, the head of the Nazi Labor Office, the only private individual who
existed in Nazi Germany was someone asleep.

Fascism derives from the Latin word fasces. It was a tied bundle of rods surrounding
an ax and the symbol of ancient Rome. It meant the individuals in a society should subvert their
will for the good of the state.

Seven Characteristics of Fascism

Fascism uses Social Darwinism as its "scientific" base. It legitimizes any studies that support the
concept of national characteristics and the superiority of the nation's majority race. The research
must support fascism's vision that a strong nation must be homogeneous to avoid decadence.

Fascist regimes have these seven characteristics:

 1. Usurpation: The state overtakes and merges with corporate power and sometimes the
church.
2. Nationalism: Leaders appeal to a nostalgic wish to return to an earlier golden age. That
can include a return to a simple, virtuous pastoral life.
3. Militarism: They glorify military strength through propaganda.
4. Father Figure: The leader assumes the role of the father of the nation. He creates a cult
status as a "dauntless ruler beholden to no one."
5. Mass Appeal: The leader claims that the people, manifested as the state, can achieve
anything. If they don't succeed, it's because of naysayers, minority groups and saboteurs.
6. Government Surveillance: The government takes an active role in suppressing dissent. It
rewards people who report on each other.
7. Persecution: The state violently persecutes minority groups and opponents.

Advantages

Fascist economies are good at wholly transforming societies to conform to the planner's vision.

They have many of the same benefits of any centrally planned economies. It can mobilize
economic resources on a large scale. It executes massive projects and creates industrial power.
For example, Russia's centrally planned economy built up its military power to defeat the
Nazis. It then quickly rebuilt its economy after World War II.

Disadvantages

The central planning authority cannot get accurate, detailed, and timely information about
consumers' needs. That happens naturally in a free market economy. But central planners set
wages and prices. They lose the valuable feedback these indicators provide about supply and
demand.

As a result, there are often shortages of consumer goods. All production is geared toward those
that serve the national interest, like military equipment and public works.

To compensate, citizens create a black market to trade the things that the fascist economy doesn't
provide. This erodes public trust in the government and creates cynicism and rebellion in the
long run.

Fascism either ignores or attacks those who don't aid attainment of the national values. This
includes minority groups, the elderly, the developmentally challenged, and their caretakers. It
attacks groups that it blames for past economic ailments. The others are viewed as extraneous or
an unnecessary drag on prosperity. They may be viewed as bad for the genetic pool and
sterilized.
Fascism only aids those who align with the national values. They may use their power to rig the
system and create additional barriers to entry. This includes laws, educational attainment, and
capital. In the long term, this can limit diversity and the innovation it creates.

Fascism ignores external costs, such as pollution. This makes goods cheaper and more
accessible. It also depletes natural resources and lowers the quality of life in the affected areas.

Difference Between Fascism, Capitalism, Socialism, and Communism

Attribute Fascism Communism Socialism Capitalism

Factors of production
Individuals Everyone Everyone Individuals
are owned by
Factors of production Nation Usefulness to Usefulness to
Profit
are valued for Building people people
Law of supply and
Allocation decided by Central plan Central plan Central plan
demand
From each according
Ability Ability Market decides
to his Value to the
To each according to Nation Income, wealth and
Need Contribution
his borrowing ability

Fascism Versus Capitalism

Fascism and capitalism both allow entrepreneurship. The fascist society restricts it to those who
contribute to the national interest. Entrepreneurs must follow the orders of the central planners.
They can become very profitable. But not because they are in touch with the market.

Many entrepreneurs are independent-minded. They prefer to take orders from customers, not the
government. Fascism could destroy the entrepreneurial spirit, thus limiting
innovation. Innovation creates jobs, more tax revenue, and higher stock prices. Fascist nations
miss this comparative advantage over other countries. For instance, technological innovation is
one factor that keeps America several steps ahead of most nations. Silicon Valley is America's
innovative advantage.

Fascism, like capitalism, does not promote equality of opportunity. Those without the proper
nutrition, support, and education may never make it to the playing field. Society will never
benefit from their valuable skills.

Fascism Versus Socialism

In both fascism and socialism, the government rewards companies for their contribution. The
difference is that socialist governments own the companies in strategic industries outright. These
are in oil, gas, and other energy-related resources.
Fascist governments allow private citizens to own them. The state may own some companies, but
it is more likely to establish cartels of business within the industries. It hands out contracts,
thereby co-opting business owners to serve the state.

Fascism Versus Communism

In the past, fascism gained power in countries where communism had also become a threat.
Business owners preferred the fascist leader because they thought they could control him. They
were more afraid of a communist revolution where they lost all their wealth and power. They
underestimated the leader's connection to the general public.

Can Fascism Occur in a Democracy?

Fascist leaders can rise to power through democratic elections. Economist Milton Friedman
suggested that democracy can only exist in a capitalistic society. But many countries have had
fascist economic components and a democratically elected government. But Adolf Hitler was
elected to power in Germany. He used that position to overthrow his enemies and become a
fascist leader.

Fascism grows if three ingredients are in place. First, the nation must be in a severe economic
crisis. Second, people believe that existing institutions and government parties cannot improve
the situation. The third ingredient is a sense that the country used to be great. People look to a
charismatic leader to restore the nation to greatness. They tolerate the loss of civil liberties if it
allows them to regain past glory.

Could the United States succumb to fascism? Not without violating the Constitution. First, it
protects the rights of minorities from the very persecution that fascists thrive on. It has checks
and balances. The fascist leader would have to dissolve Congress and the Judicial branch to
attain full power.

The U.S. Constitution also protects the free market, but that is consistent with fascism. For
example:

 Article I, Section 8 establishes the protection of innovation through copyright.

 Article I, Sections 9 and 10 protects free enterprise and freedom of choice. It prohibits
states from taxing each others' production.
 Amendment IV prohibits unreasonable government searches and seizures,
thereby protecting private property.
 Amendment V protects the ownership of private property.
 Amendment XIV prohibits the government from taking property without due process of
law.
 Amendments IX and X limit the government's power to those specifically outlined in
Constitution. All other powers not mentioned are conferred to the people.
The Constitution protects capitalism and democracy. But fascism is unlike socialism or
communism. It allows business owners to keep their companies. (Source: James Dick, Jeffrey
Blais, Peter Moore, "Chapter 1, How Has the Constitution Shaped the Economic System in the
United States?" Civics and Government.)

Examples

Fascism was one of the consequences of World War I, the Bolshevik Revolution, and the Great
Depression. The war created thousands of angry and disenchanted veterans. They felt the
government had betrayed them by sending them into an unnecessary conflict. The revolution in
Russia made everyone afraid of the spread of communism. The depression made people
desperate for a better life.

The fascist leaders became successful by appealing to the public nationalism. They used violence
to intimidate others. They convinced the ruling elite to share power in return for beating the
communists.

Italy. Benito Mussolini first used the word "fascist" in 1919. He was elected, but only by 4,796
votes. The existing government helped him rise to power to fight off the communists. They also
wanted to co-opt and use his violent militia. Italian fascists believed that since the development
of the nation-state was a scientific fact, its preservation ought to be the object of state policy.

Italy organized private companies into 22 sectors that had Fascist Party members as senior
participants. State agencies had shares in many strategic companies. The Instituto Mobiliare
controlled the country's credit.

Germany. Hitler won 37.2 percent of the vote in 1932. Wealthy business owners aided his
ascent. In return, they received government contracts and slave labor. Government cartels
controlled the finance, manufacturing, and agriculture industries. They allowed owners to get
rich from the profits while lowering wages for the workers.

Spain. Francisco Franco ruled Spain from 1939 to 1975. He overthrew the democratically
elected government during the Spanish Civil War. At first, he steered Spain toward economic
independence. That didn't help an economy already battered by the civil war and then World War
II. Spain suffered from recession and the growth of a black market. In the 1960s, Franco opened
up Spain's markets to free trade and foreign investment.

Other fascist regimes were Antonio de Oliveira Salazar in Portugal and Juan Perón in Argentina.
Great Britain, France, and Hungary had fascist tendencies. These sputtered out before attaining
too much power, according to Robert Paxton in the "Anatomy of Fascism." (Source: "The
Original Axis of Evil," The New York Times, May 2, 2004.)