Polanyi & Gas Prices
The Great Transformation – The Political and Economic Origins of Our Time
By Karl Polanyi
The other day the gaslight came on so I pulled up to the pump and filled the entire tank in my Toyota Camry for just over $25. I’m the kind of guy that never notices gas prices, I just pull in when I’m running low and top it off. But even I’m aware of the few extra bucks in the monthly budget. The other day Liz and I were talking about how with gas prices this low it feels like we’ve gotten a raise.
The global and political affects of gas prices is the perfect case study to go hand in hand with Karl Polanyi’s book, The Great Transformation. The average US consumer is reaping the benefits from lower gas prices and it’s not just the United States that is benefiting. Most countries rely on oil importers, not exporters, so the economic boom is having enormous effects on countries all over the globe.
I found it interesting to read Polyani’s thoughts about free and self-regulating markets while also recently reading in the Wall Street Journal that “Indonesia will scrap gasoline price subsidies starting Thursday as part of President Joko Widodo’s push to free up more funding for infrastructure spending to help boost the economy.[1]” Also just a few weeks ago India announced they are looking at getting rid of their 22 billion dollar a year fuel subsidies for consumers as long as oil prices remain low[2].
While many global countries are benefiting from low oil costs, Shane Ferro wrote about countries that export oil and are severely hurting because of the drop in price. Ferro wrote, “Russia has a currency crisis, Venezuela has a full-on economic disaster in the works, and Iran is reportedly having trouble funding Hezbollah in Lebanon. These problems are big enough to be political, as well as economic, problems for the leaders of these states.[3]”
Low oil rates point to the global tension that is currently going on. Polanyi hits on the tension that comes with any economic model but seems to point towards a possible end to this tension and a conceivable utopia. I’m not so sure about utopia in this lifetime. I think this tension will always exist while corruption and greed find a way to play out in any economic system man creates.
So the question becomes how do Jesus followers live in this tension and allow economic flourishing while not coming at the expense of the poor. While Polanyi is dealing with economic concerns there seems to be a connection to MaryKate’s book last week on power. I don’t know the answer but just like last week’s discussion about power, we should be using money as a way to lift up the needy and poor instead of just padding our pockets.
I’m enjoying the few extra dollars in my monthly budget due to low gas prices but I know it comes at a cost to someone else. Such a difficult and complex process to understand, yet I don’t want to remain a naive player anymore. Just like power, money in and of itself is neutral. It’s how we choose to use money that can build up the Kingdom of God. I need more time to process Polanyi and think through my role and exactly how the Church should be involved. I’m curious to read everyone else’s thoughts.
[1] I Made Sentant, “Indonesia Scraps Gasoline Subsidies,” Wall Street Journal, January 2, 2015, accessed January 23, 2015, http://www.wsj.com/articles/indonesia-scraps-gasoline-subsidies-1420004528.
[2] Yep, E. (2015, January 4). Falling Oil Spells Boon for Most of Asia’s Economies. Retrieved fromhttp://www.wsj.com/articles/falling-oil-spells-boon-for-most-of-asias-economies-1420398456
[3] Shane Ferro, “5 Ways a Low Oil Price Affects the Global Political Landscape Read More//www.businessinsider.com/ways-low-oil-prices-affect-global-political-landscape-2015-1: Http,” Business Insider, January 6, 2015, accessed January 23, 2015, http://www.businessinsider.com/ways-low-oil-prices-affect-global-political-landscape-2015-1.
About the Author
Nick Martineau
Nick is a pastor at Hope Community Church in Andover, KS, founder of ILoveOrphans.com, and part of the LGP5 cohort.13 responses to “Polanyi & Gas Prices”
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Nick, great integration in your post! I wonder, as I read your words about Indonesia and India, what will happen when the prices of fuel inevitably rise? It seems to be a disaster waiting to happen of they remove these margins from their budget. The money spent on subsidies now will get reallocated and when they need them in the approaching seasons, they won’t have them to give. CRUNCH! Then, their crunch trickles out to the rest of their global economic partners.
Hmmmm… SOMEbody probably should regulate them! Ha!
J
I hear the struggle of enjoying a few extra dollars with knowing it’s negatively impacting others. That’s when I wish Polayni had more of an answer to how we can do things more communally in local settings that make it a win-win for everyone. How can we live into an abundant thinking versus scarcity thinking? I think the only way is through relationships that build on one another (kind of like, how can I love the next kid after my first one – is that possible?).
I was just talking with a gal today who lives in Thunder Bay (know Len H), and said how differently she thinks than her First Nation friend who was speaking about the care for her elderly mother. When Kimberley asked, “Is there someone back home who is caring for your mom?” The woman was stunned at first, and then said emphatically, “Only someone? There is no ‘someone’ – we all will be taking care of her.”
Love your connection to caring for the elderly. It’s not just “someones issue.” This is something for all of us.
Nick,
I took a pic of the gas price drop and posted it on Facebook a few weeks ago. At that time it had dropped below 1.79 for a gallon or regular. Now it’s as low as 1.63! So I posted my joy in having a bit more spending money and a friend sent his response: “Depends on which side of the transaction you are on.” He’s an engineer for Chevron and while he’s not personally impacted, he knows that they’ve stopped hiring and will likely lay people off. And as easy as it is to look at ‘big oil’ as the giant not unlike Goliath, this giant hires tens of thousands of people. Some of the best paying jobs in places like Nigeria, Angola, Scotland, Thailand and yes in America are being provided by the oil industry. Some of the economic flourishing in very difficult places on this planet can be accredited to oil. So I agree with you that we need to keep in mind that those extra dollars come at a cost to someone else… I’m not going to start a charity for big oil but on the other hand I’m not rejoicing over the decline of oil either.
All these economic factors because the Saudis want low gas prices. Hard to fully understand but I can see the benefit of more regulations.
Dave, global interconnectedness just got real, did it not?
J
We are keeping our pumps filled in anticipation of increased gas prices due to oil worker strikes or attacks by Islamic State militants on the Iraqi oil production. Ideally, we would just avoid driving and consuming so much, but that isn’t possible as we must drive to work. Work causes us to consume more. Incidents around the world create higher costs, which contribute to the need to work even more.
Are Jesus and Robin Hood related. I want them to be. I think stealing from the rich and giving to the poor is the answer, until I realize globally I am one of the rich and have to think of real ways that can change the system. I am looking forward to reading “How to Change the World”, one of our upcoming books because it will hopefully help us think through baby steps toward solutions we are all sensing an incredible need for. This program continues to be more challenging and better and harder and intriguing and perplexing etc . . . but for some sick reason I love it!
I also am really looking forward to “How to Change the World.” I know we need to understand history and theory before we move on to solutions but I like thinking in terms of solutions way better.
Nick,
Me too! I guess I’m a solutions driven person and don’t like to dwell on troubles for too long.:)
Dawnel
Phil, I was not expecting someone to bring up Robin Hood, but it does make you think. Deepening on the Robin Hood story, stealing from the rich sometimes made it harder for the poor because the rich took more from the poor in order to stay rich. I’m not picking on big oil (loved Dave’s perspective), but it is interesting that the answer is to hire fewer employees rather than drastically reduce salaries of the top earners.
Blessings Nick,
Without being “ultra spiritual” I beleive that the way for Chrisitans to deal with the economic systems of our countries is to learn economic principles in the Bible. I have come to a place in my faith that I know that I have to totally belive in God. Im preaching this morning from Mark 11:22-24. Where Jesus says have “have faith in God”. And more than ever a believing community should come together, divide resources, set up faith based business that will help us in this economic time. I too feel that extra money in my pocket Nick and its good to look at my tank and it still has gas in it! Blessings brother Nick God give you grace!!!!!!!!
Nick, I also thought of MaryKate’s book while I was reading this. Her concept of power being neutral kept coming to mind. Polanyi’ points out the evils of capitalism, but I have a hard time identifying other systems that are currently working any better. I like your quote, “I think this tension will always exist while corruption and greed find a way to play out in any economic system man creates.” It seems that much comes down to power—who has it and how are they using it.