Centralized control can supercharge results—but at what cost.
When people hear the word “fascism,” they usually think of dictatorships, propaganda, and oppression. But what often gets left out of the conversation is the economic machinery behind those regimes. In certain historical moments, tightly centralized power has led to short-term economic surges—usually through force, fear, and the elimination of red tape. That doesn’t mean it’s ethical or sustainable, but it does raise an uncomfortable question: can economic prosperity grow under a system built on control?
This isn’t about endorsing fascism or authoritarianism—it’s about examining why it can create economic momentum, especially in nations desperate for quick solutions. When governments don’t have to negotiate, explain, or compromise, they can make sweeping economic changes that affect jobs, infrastructure, and industry practically overnight.
These examples highlight some arguments on how consolidating power has historically been used to fuel economic growth—sometimes rapidly, often controversially—and why the conversation around it is more complex than it first appears.
1. State control can eliminate delays and fast-track major projects.
In democratic systems, large infrastructure projects can take years just to get approval. Centralized regimes often cut out public debate entirely, allowing leaders to greenlight highways, factories, and energy systems in record time. As stated by the authors at Carnegie Endowment, this ability to bypass extensive debate is sometimes seen as enabling faster action. There’s no vote, no back-and-forth—just immediate execution.
This can create a boom in construction jobs and economic activity. Rapid project rollouts also attract industries that depend on solid infrastructure. While it comes at the cost of democratic checks, the efficiency is undeniable. The economy moves faster because decision-making is tightly held and ruthlessly enforced.
2. Industries get prioritized based on national goals, not market trends.
When a central authority controls economic planning, industries aren’t left to sink or swim on their own. Instead, the government hand-picks which sectors to invest in, often pouring money into manufacturing, technology, or energy for long-term strategy. As reported by Tiffany Tsoi at Bloomberg, this kind of active industrial policy is a tool used by some states aiming for specific economic outcomes.
That focus can rapidly scale production, create jobs, and dominate international markets. There’s no waiting for investors to get interested or for consumer demand to slowly grow. The state decides, and then it mobilizes everything to support that goal—sometimes to impressive economic effect.
3. Propaganda can drive consumer and labor behavior with precision.
Under fascist regimes, messaging is a tightly controlled science. The government doesn’t just sell products—it sells a national purpose. Citizens are told that spending, producing, or sacrificing for the economy is their patriotic duty. According to Robert Soucy at Encyclopædia Britannica, this linking of economic activity to national duty through propaganda was characteristic of such regimes, and that mindset can drive massive productivity.
Labor movements, spending habits, and even saving trends can be engineered through emotion and loyalty rather than choice. The result? A population that works harder, consumes strategically, and sees economic goals as collective rather than individual. It’s psychological, not just practical—and often very effective.
4. Dissent is crushed, making economic rollout smoother.
In democracies, protests, strikes, and lawsuits can grind progress to a halt. Under authoritarian control, those disruptions are often dealt with before they gain traction. While undeniably oppressive, the lack of resistance means policies—economic or otherwise—get implemented without interruption.
Factories stay open. Projects stay on schedule. Economic plans move forward without legal tangles or public pushback. It’s not moral or humane, but it is efficient, and in terms of pure productivity, that can lead to rapid gains.
5. Currency and inflation can be artificially stabilized.
Centralized regimes often take tight control of monetary policy, which allows them to manipulate inflation, set currency value, and manage interest rates with zero regard for independent checks. This can create the illusion of a stable economy, even when deeper problems exist.
In the short term, it works. Predictable prices and steady currency can attract foreign investors and boost consumer confidence. Long-term effects might be devastating, but in the early stages, it can feel like an economic miracle—especially for countries that previously faced runaway inflation.
6. Labor is highly controlled, which can optimize output.
Under fascist systems, labor isn’t just a market variable—it’s a national tool. Wages, hours, and assignments may be dictated by the state to maximize production and minimize waste. Worker rights are secondary to economic goals.
This command structure can lead to efficient labor deployment. Massive national projects get built ahead of schedule. Quotas are met without negotiation. Morally? It’s fraught. But functionally, it can ramp up production in ways that market-based economies struggle to match without incentivizing or negotiating with labor unions.
7. Foreign investment often flows in seeking stability and speed.
Authoritarian countries can attract foreign investors who value predictability over transparency. When investors know that regulations won’t change based on election cycles or protests, they see less risk—especially in emerging markets.
While the ethics are murky, the economic result can be real. Businesses like the guarantee of favorable policies, access to cheap labor, and protection from competitors. That capital inflow can stimulate development, technology transfer, and employment at a scale that might not happen under less predictable systems.
8. National pride is weaponized to fuel consumer spending.
Fascist economies often promote domestic consumption with slogans and social pressure. Citizens are told to “buy national,” support state-run companies, and view imported goods with suspicion. It’s not just economic—it’s emotional and cultural.
This loyalty-driven spending keeps money circulating within the system. Local industries benefit from guaranteed demand. Even subpar products can thrive because buying them becomes a symbol of patriotism. It’s not organic market growth, but it still boosts production and national revenue.
9. Crime and corruption are publicly punished to show control.
To maintain legitimacy, fascist states often make an example of economic criminals—tax evaders, fraudsters, or anyone seen as undermining the system. These public crackdowns create an image of order, even if behind-the-scenes corruption still exists.
The perception of a clean, tightly-run economy can increase public trust and compliance. Citizens are more likely to pay taxes and less likely to engage in black-market behavior when they believe punishment is swift and certain. It’s part fear, part theater—and it can keep the economic engine running on smoother tracks.
10. Economic narratives become part of the national identity.
Fascist governments often tie economic progress to national strength. GDP growth, export numbers, and industrial success aren’t just stats—they’re part of the country’s pride and self-worth. This framing creates a shared sense of mission.
When people believe they’re building something bigger than themselves, they work harder, accept sacrifice, and tolerate limits. It’s a powerful motivator that can drive results, especially in the short term. The economy becomes a story, and everyone’s expected to play their part to make it succeed.