| Chapter 1: | Italy from the American Immigration Quota Act of 1921 to Mussolini’s Policy of Grossraum, 1921–1924 |
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In a United Press International news conference on May 12, 1921, Prime Minister Giovanni Giolitti called attention to Italy’s plight: its dense population—almost 400 inhabitants to the square mile—and insufficient resources to sustain itself, and said the American Restriction Immigration policy had dealt a severe blow to his country. In fact, only one-fifth of Italy’s land could be properly cultivated, only two-fifths could be partially tilled, and the remaining two-fifths consisted of barren rock and mountains. Before the war, 600,000 people left Italy each year for other countries. Italy’s international trade deficit amounted to more than $200 million. However, the deficit had been more than overcome by wealth returned to the country by emigrants, whose remittances amounted to over $200 million, and the money brought into the country by foreign tourists, which amounted to $120 million each year. Emigration and tourism, Italy’s two cash cows, historically rewarded the country with hefty returns.9
Italy’s overall socioeconomic situation, with its perennial, near- stagnant sluggishness, worsened after the American Restrictive Immigration policy. Unskilled labor in Italy made up the core of unemployment. Agriculture absorbed 50 percent of the labor population, industry 30 percent, and trade and commerce less than 10 percent. Expansion of the agricultural economy had suffered serious setbacks. For instance, the output of wheat and corn dropped from 52 and 25 million quintals respectively in 1911, to 38 and 22 million quintals in 1920 (one quintal equals 100 kilograms or about 220 pounds). The overall economic crisis and its resultant inflation, labor unrest, and growing unemployment, intensified after a series of domestic incidents. General strikes between 1919 and 1921 led to widespread looting of stores and to workers’ occupation of major factories (September 1920).10
This unstable socioeconomic situation forced Italian governmental authorities to take drastic measures to reduce fallout from the Johnson Bill. De Michelis points out, “the American Restrictive Law was going to bear serious repercussions in Italy. The Italian government ought to take immediate measures to reduce the consequences to a minimum economic loss.” To this end, the head of the Emigration Bureau suggested a series of devices.