Policies for Full Employment in the Context of Capitalism’s Crises: Historical Development and the Italian Debate in the 1990s

This article examines capitalist crises and their effects on labor markets, focusing on the Italian debate surrounding policies aimed at achieving full employment. It analyzes the tension between Keynesian approaches, which emphasize demand stimulation and public intervention, and neoliberal policies that prioritize fiscal austerity and labor market flexibility. The study evaluates various proposals to address unemployment, including reduced working hours, universal basic income, and state-led industrial policies. By engaging with key contributions from Italian scholars, the article underscores the need for innovative labor market interventions to reconcile economic recovery with employment stability. It highlights the challenges posed by structural unemployment, particularly in the aftermath of production crises, and discusses the implications of these dynamics for workers' rights and social protections. The discussion is framed within the broader context of the 2008 financial crisis and its enduring impact on global labor markets. The article argues that achieving full employment requires a balanced approach that considers both the quantity and quality of jobs, ensuring that economic growth does not exacerbate inequalities or undermine social cohesion. By offering a critical analysis of past and present policy debates, this study provides valuable insights for policymakers seeking to address the complexities of contemporary capitalist economies and promote sustainable labor market solutions.