Fascism is nationalism taken to the extreme. In a fascist state there is no free market or capitalistic competition. Everything is owned by the government and everyone works for the benefit of the nation.
So instead of three car companies competing to sell the most cars there is only one car company that makes all the cars for the whole country. That goes for all industries in the country.
It's a little different from socialism in that the focus is on the strength of your particular nation over all others, but the practices within the nation may be similar to socialism.
The Nazis were fascists because they wanted to further their own way of life and conquer Europe to make it all like them. Everyone else be damned.
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