Capitalism and Community from the Great Depression to the Great Recession Coexistence, Conflict, Complementarity
Total Page：16
File Type：pdf, Size：1020Kb
Master’s Degree programme in Economia e Gestione delle Aziende Capitalism and Community from the Great Depression to the Great Recession Coexistence, conflict, complementarity. Supervisor Professor Giovanni Favero Graduand Alessandro Perricone Matricolation number 868784 Academic Year 2018 / 2019 To my parents, the two most important teachers in my life. To Annalisa, who raises the number up to three. To the late Sirius, my spirit animal. 1 Summary Introduction .................................................................................................................... 3 1. “A Wolf at the Door and The National Anthem” .................................................... 7 1.1 Great Depression and World War II ........................................................................ 7 1.2 United States of America .......................................................................................... 7 1.3 Italy ......................................................................................................................... 19 1.4 A sensemaking narrative ........................................................................................ 22 2. “Everything in Its Right Place and Stop Whispering” .......................................... 33 2.1 The Golden Age of Capitalism and the Civil Right movements ............................. 33 2.2 United States of America ........................................................................................ 36 2.3 Italy ......................................................................................................................... 44 2.4 A sensemaking narrative ........................................................................................ 47 3. “Scatterbrain and Worrywart” ............................................................................. 58 3.1 Disillusion and social criticism .............................................................................. 58 3.2 United States of America ........................................................................................ 64 3.3 Italy ......................................................................................................................... 70 3.4 A sensemaking narrative ........................................................................................ 75 4. “You and Whose Army? and Jigsaw Falling Into Place” ..................................... 89 4.1 Neoliberalism and Financialization ....................................................................... 89 4.2 United States of America ...................................................................................... 101 4.3 Italy ....................................................................................................................... 109 4.4 A sensemaking narrative ...................................................................................... 115 5. “In Limbo” .......................................................................................................... 133 5.1 Post-Crisis ............................................................................................................ 133 5.2 A sensemaking narrative ...................................................................................... 151 Conclusion .................................................................................................................. 168 Bibliography ............................................................................................................... 176 2 Introduction This dissertation has as purpose the study of the dualism which, from the Great Depression until the Great Recession, has been in force among capitalism and community. Such analysis plans to underline how this relationship has developed, which one are the main actors that have covered an important role in influencing the connection between these two spheres of society, apparently in contrast. With the motive to follow a chronological order to develop the thesis, the latter will be divided into chapters which would consider well-defined historic periods, more specifically the sixteen-year period of 1929-1945 of the Great Depression and World War II; the twenty-year period of the Fifties and Sixties, the Golden Age of Capitalism; the fifteen-year span between 1970 and 1985; the nearly twenty-five year period of neoliberalism, from 1986 to the financial and real-estate industries crisis of 2008; finally the ten-year period until today. Being a subject with global range, the study will be extended also on geo-cultural ends, trying to provide an explication on how a different environment could alter the perception and vision on those historical events that will be the object of analysis. More specifically, the United States of America and Italy will be the nations scrutinized the most. Beyond the essential bibliography derived from textbooks, articles, essays, movies will also be used as a source, lingering over the form and type of interpretation provided by this kind of art to the topics of this dissertation. In fact, imaginative literature including films, novels, plays, can be considered a useful instrument to place emphasis on precise events and periods of time, to connect with the audience on multiple dimensions and to present an interpretation of the reality. In the case in point, the different visions toward business environments, social dynamics and individuals have the value of shaping the opinion of the audience, raising awareness and providing insights for future improvements. 3 In order to clarify the reason why this thesis will focus on determined occurrences and adopt an approach that will revolve around the controversies of the relation between capitalism and community, it seems compulsory to dedicate part of this prologue to the presentation of the definitions of both terms. An undisputed acknowledgement has to be given to the author of the homonymous essay “Capitalism and Community”1, published for the Cambridge University Press in the winter of 1999, British academic philosopher David Conway. Conway’s intent was to refute the theory provided by communitarians that capitalism is inimical to community. He reached conclusions that can only be shared to a limited degree in this dissertation, since the article was written nearby twenty years ago. Nonetheless, thanks to Conway, a detailed explanation on the meaning the two terms could assume has been provided. That is why this introduction will make good use of the terminological prelude of his article.2 The term "capitalism" has two potential sources of misunderstanding. First, the term can be intended to refer to different types of entity, a specific form of order exemplified by an actual society or a set of societies to a different degree; and an actual society that exemplifies this specific form in an especially marked degree. The former understanding reflects an ideal form that comprises a set of constitutive institutions and practices, the latter refers to actual societies like the British or American ones that implement this form to a particular degree and are often identified with the same term. Second, there is no general consensus in literature about the form of order to which capitalism should be referring to. Conway identifies the three different forms of order that are mainly utilized. The first is related to a market economy, where its fundamental institutions and practices are based on private ownership of factors of productions, freedom of contract and association (free labour) and production intended for profit. The second implies the combination of these characteristics with a form of government where the state is confined to provide those goods and services impossible to be 1 D. Conway, “Capitalism and Community”, Social Philosophy and Policy Foundation, XIII (1996), 1, pp. 137-163 2 Ivi, pp. 138-142 4 obtained by the citizens in autonomy thought non-state institutions and agencies. Among these necessary provisions, protection of life, liberty and property of citizens and the regulation of contracts between them are the most important. Finally, the third one associates capitalism with democracy. Here, the participation of citizenry in the State affairs is translated with the electorate rights to choose its principal officers, to stand for election to office and to join the electoral process through party membership, canvassing, campaigning and rights of expression and assembly. Following Conway, the interpretation given to the term “capitalism” will be of a societal order that includes the institutions of representative democracy, a market economy and limited government. The term "community" confines its ambiguity to the fact that it could be intended as a specific kind of character or quality which some forms of association can have, or it could designate the various concrete forms of association that have this kind of character. A community is any set of individuals who share with one another, in whole or part, a common life or form of life; attach, and are aware of themselves and each other as attaching, intrinsic value to that common life or form of life; feel, or are disposed to feel, some degree of heightened regard for one another; and cooperate, or are disposed to cooperate, with one another to preserve and foster that common life or form of life. A common life can be shared by two or more individuals whose lives are in direct contact and whose actions entail cooperation. A common form of life is extended to the sharing