Hoped an increase in wealth and prosperity would make liberal institutions more acecptable and secure and after 1900 there was a big industrial expansion where benefits reached ordinary people
Real wages rose 25% by 1913 and there were laws to control child and female labour
Social insurance and pension schemes were established and suffrage given to all men over 30
This aimed to unify all social groups by satisfying moderate Catholics and socialists but led to upset liberals who feared increased church or worker influence.
Tried to make the state more neutral in industrial disputes and not automatically turn against workers
For socialists this was not enough
Also upset elites like industrialists who saw this new attitude as the state siding with workers
Feared a growth in socialism, which would reduce their power and profits due to increased worker rights
Growing role of the state led to more civil servants who joined the petty bourgeoisie of small traders and shopkeepers
Worried about growth of socialism and the large power of big businesses
Feared the weakness of the government, demonstrated by Giolitti's lack of authority and attempts to appease all groups and so sought an alternative form of government
Used foreign expansion to try to win over nationalists by attacking Libya in 1911
Italy was victorious, but peasants were upset as they were conscripted to fight in a war they didn't understand and had no interest in and had to pay higher tax
Increased socialist criticism.
Tried to encourage Italian identification with the state by passing laws to help ordinary citizens like increased suffrage
Undermined by the corrupt political system of transformismo that did not represent people
Disillusioned and felt this was just another scheme by the "master of the underworld"
Despite reforms there was mass unrest in 1914
June - 3 demonstrators were shot causing riots in major sities
Radicals seized control of government buildings and in "Red Romanga" two areas declared themselves independent
Period became known as "Red Week" even though socialists failed to organise a successful strike
It scared the bourgeoisie and showed Giolitti's policy to try to absorb workers had failed
Money to help south not nearly enough
Destitution of peasants and Liberal's inability to solve it