Blackshirts and Reds: Rational Fascism and the Overthrow of Communism

by Michael Parenti

The orthodox mythology also would have us believe that the Western democracies (with the United States leading the way) have opposed both totalitarian systems with equal vigor. In fact, U.S. leaders have been dedicated above all to making the world safe for global corporate investment and the private profit system. Pursuant of this goal, they have used fascism to protect capitalism, while claiming to be saving democracy from communism.

Over a century ago, in his great work Les Misérables Victor Hugo asked, “Will the future arrive?” He was thinking of a future of social justice, free from the “terrible shadows” of oppression imposed by the few upon the great mass of humankind. Of late, some scribes have announced “the end of history.” With the overthrow of communism, the monumental struggle between alternative systems has ended, they say. Capitalism’s victory is total.

History teaches us that all ruling elites try to portray themselves as the natural and durable social order, even ones that are in serious crisis, that threaten to devour their environmental base in order to continually recreate their hierarchal structure of power and privilege. And all ruling elites are scornful and intolerant of alternative viewpoints.

To maintain profit levels, the large landowners and industrialists would have to slash wages and raise prices. The state in turn would have to provide them with massive subsidies and tax exemptions. To finance this corporate welfarism, the populace would have to be taxed more heavily, and social services and welfare expenditures would have to be drastically cut—measures that might sound familiar to us today.

In the December 1932 election, three candidates ran for president: the conservative incumbent Field Marshal von Hindenburg, the Nazi candidate Adolph Hitler, and the Communist party candidate Ernst Thaelmann. In his campaign, Thaelmann argued that a vote for Hindenburg amounted to a vote for Hitler and that Hitler would lead Germany into war. The bourgeois press, including the Social Democrats, denounced this view as “Moscow inspired.”

True to form, the Social Democrat leaders refused the Communist party’s proposal to form an eleventh-hour coalition against Nazism. As in many other countries past and present, so in Germany, the Social Democrats would sooner ally themselves with the reactionary Right than make common cause with the Reds.

Here were two peoples, the Italians and Germans, with different histories, cultures, and languages, and supposedly different temperaments, who ended up with the same repressive solutions because of the compelling similarities of economic power and class conflict that prevailed in their respective countries.

Both Mussolini and Hitler showed their gratitude to their big business patrons by privatizing many perfectly solvent state-owned steel mills, power plants, banks, and steamship companies. Both regimes dipped heavily into the public treasury to refloat or subsidize heavy industry. Agribusiness farming was expanded and heavily subsidized. Both states guaranteed a return on the capital invested by giant corporations while assuming most of the risks and losses on investments. As is often the case with reactionary regimes, public capital was raided by private capital.

In Germany, unemployment was cut in half with the considerable expansion in armaments jobs, but overall poverty increased because of the drastic wage cuts. And from 1935 to 1943 industrial profits increased substantially while the net income of corporate leaders climbed 46 percent. During the radical 1930s, in the United States, Great Britain, and Scandanavia, upper-income groups experienced a modest decline in their share of the national income; but in Germany the top 5 percent enjoyed a 15 percent gain.5