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to its interference and control and final decision, or the governmentmay make the plans directly, using the guilds or corporatives ortrade associations as mere advisory bodies. In theory Mussoliniadopted the first method and Hitler the second. Actually, the tendencyof this planning, however it begins, is to drift toward thesecond method and that is what happened in Italy. Accordingly,what emerges in the end is a multitude of colossal bureaus whichtake over the direction and supervision of all industry and tradeand which gradually absorb all the decisions of industry and trade.It is in this that the true significance of the word "bureaucracy"takes its origin. When government confined itself to managing itsown affairs, policing society, managing its armed forces, furnishinga judiciary to society, protecting the health and persons of its people,it operated through agencies which were called bureaus andthose who manned them were called bureaucrats. But the moderngovernment bureaus and their bureaucratic managers in the nationalsocialist state are something quite different. The vastness of the modernstate, the multitude of human situations it undertakes to regulateand care for, the extension of its directing hand to the affairs ofevery business unit are such that the bureaucrats participate in theformulation of the policies and making of the decisions of privatelife. The bureaus are no longer behaving as the servants of the staterendering services to the people as citizens. They are now engagedin managing and operating the private affairs of the people. Andwhile the whole tendency of European states has been in this direction,it has remained for the fascists to adopt the practice as aninstitution of government upon a general—or to use its favoredword—a totalitarian scale.Of course the first necessity when this is attempted is to have anenclosed state. The government cannot plan for the shoe industryand make its plans stick for any part of it save that part which itcan reach with its decrees—that is, that part located in its country.Hence the plans for the shoe industry are necessarily limited to thedomestic shoe industry. Those plans include production schedules,qualities, prices, wages, labor terms, forms of organization, conditionsand standards of work and of competition. Obviously nogovernment can enforce these conditions against producers of shoes141