Good Ideas on Paper
This week I did my best to read Karl Polyani’s The Great Transformation written 80 years ago to elucidate economic and social changes in Europe as it became an industrialized society. The book focused on the rise of market liberalism and the author’s belief that it was neither sustainable nor healthy. The key concept of embeddedness helps us understand why this is true. Until the 19th century it was historically normative for the economy to be subordinated to politics, religion, and social relationships. In a self-regulating market system, society becomes embedded in the economic system. The market drives the society. “Among [Polyani’s] central theses are the ideas that self-regulating markets never work; their deficiencies, not only in their internal workings but also in their consequences (e.g., for the poor), are so great that government intervention becomes necessary; and that the pace of change is of central importance in determining these consequences.”[1]
It was here that I began to be challenged by more than vocabulary and new concepts. In this blog I will discuss ‘out loud’ new thoughts about the market which contrast economic ideas I just took for granted most of my life. I was raised to think that the less government the better so that the US economy could flourish. I was in high school during the trickle-down economy years of the Reagan Administration. Even as I have developed a growing concern for marginalized and vulnerable people at home and around the world the belief that government should let the market ‘work itself out’ has played quietly in the background. As Polyani’s work unfolded, it became evident to me that government intervention in economy can protect people.
To be truly self-regulating, there must be no interference by government in prices, supply, demand, etc. The market itself is left to adjust to such variances. Attempts toward SRM harms people. Polyani refers to what happens to human society when completely subsumed by SRM as the “satanic mill.” [2] SRM seems like good idea on paper but does not take account of the high cost to humanity. “But labor and land are no other than the human beings themselves of which every society consists and the natural surroundings in which it exists. To include them in the market mechanism means to subordinate the substance of society itself to the laws of the market.”[3] When humans and nature are subordinate to the market, they become commodities: raw material which can be bought and sold. What’s missing from this equation is the commodification of humans in the form of labor, land in the form of ‘rent’ and money via interest.[4]
There is something evil underneath an economic system that turns people and nature into commodities. That statement might sound extreme to some, but for an evangelical with a biblical world view it must be true. Genesis 1:27 says “So God created mankind in his own image, in the image of God he created them; male and female he created them.” From a Christian perspective, nature itself praises God.
Let the sea resound, and everything in it,
the world, and all who live in it.
Let the rivers clap their hands,
let the mountains sing together for joy;
let them sing before the Lord. Psalm 98:7-9a
The evil commodification of creation is even more insidious because we are complicit in our own slavery. There is something about market forces which produce goods that sparks longing to consume in the human heart. To get more goods, we work harder and longer and sacrifice intangibles: family, love and spiritual fulfillment on the altar of more.
In his work Evangelicalism and Capitalism, Jason Paul Clark says “there is something about human nature itself that becomes captive and resonates with the deforming forces of capitalism.” [5] The locus of disease at the intersection of faith and capitalism is the distorted view of humanity when the imago dei is invisible to a market that sees only labor to be bought and sold. “It is this exchange nature of the SRM, i.e., commodification, and its interplay with an understanding of human nature, i.e., a theological anthropology, that is the site of pathogenesis within capitalism.”[6]
Economic theory is at the heart of US politics whether citizens realize it or not. One side or the other cannot ‘fix’ the economic ills of the citizens. The very citizens which candidates woo in order to govern have long since been lured into the trap of market-driven existence even at the cost of their personal freedom and fulfillment. Swallowed whole cloth, capitalism promises freedom and fulfillment by having all the goods one wants and opportunity for all, but the while market must continue to make and sell in order to keep itself alive. Political options offer different lenses through which to view the system, but nearly all participate willingly whichever side wins. The people are driven to want more and never be satisfied. Clark notes Polanyi’s view that the formation of capitalist markets is a process in which Christian understandings of human relationships and responsibilities towards each other are replaced with the “secular religion” of the market.[7]
I feel buffeted by market forces. Sometimes I resist and sometimes I go along for the ride. Sometimes I want more. Sometimes I feel guilty for what I already have when others have far, far less. May my truth faith will out over secular religion.
If I had more time, I would explore the ideas of institutional freedom and individual freedom brought forth at the end of The Great Transformation. I would like to consider how these intersect with my biblical understanding of freedom in Christ and perhaps find personal freedom within an economy in which I still participate.
[1] Joseph E. Stiglitz. Forward to The Great Transformation: The Political and Economic Origins of Our Time. Beacon Press. Kindle Edition.
[2] Karl Polyani, The Great Transformation: The Political and Economic Origins of Our Time (Boston: Beacon Press, 2010), 77.
[3] Karl Polyani, The Great Transformation: The Political and Economic Origins of Our Time (Boston: Beacon Press, 2010), 75.
[4] Karl Polyani, The Great Transformation: The Political and Economic Origins of Our Time (Boston: Beacon Press, 2010), 72.
[5] Jason Clark. Evangelicalism and Capitalism (Ch.4 ‘The Great Disembedding: The Search for Identity Within the Market), 148.
[6] Jason Clark. Evangelicalism and Capitalism (Ch.4 ‘The Great Disembedding: The Search for Identity Within the Market), 148.
[7] Jason Clark. Evangelicalism and Capitalism (Ch.4 ‘The Great Disembedding: The Search for Identity Within the Market), 138.
About the Author
Julie O'Hara
13 responses to “Good Ideas on Paper”
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Great as always Julie. What role should the government play in protecting people from the harmful commodification of labour, land, and nature, and how might Christians pursue freedom that aligns with faith values rather than the “secular religion” of the market?
Glyn, Thank you for your exceedingly generous comment. Even as I wrote the sentence I was thinking the same question…I will answer the best I can in terms of general concepts admitting that I do not have a prescription.
Labour: Possibly this has to do with minimum wage laws? Also protecting workers from harmful practices – this means “regulations” – but can we PLEASE be sensible about it?
Land and Nature: You may have heard of the personhood of this river in New Zealand see article. https://apnews.com/article/religion-sacred-rivers-new-zealand-86d34a78f5fc662ccd554dd7f578d217
If land is only a commodity, it will just go to the highest bidder and always hurts the poor. Government can protect land by enacting legislation that keeps it from being ruined.
To your second question: I hope this doesn’t come across as basic. We can eschew the external ‘trappings’ of excess consumption. There are no ‘rules’ for this, but perhaps we could do better at discipling people about the idea that consumption just because you can afford it is not good stewardship. A small example for me is the plain gold wedding band. I made a choice to wear a modest ring. I doubt anyone ever notices it, but it is grounding for me.
Julie,
Good job on being willing to discuss outloud. One thought I had as I thought through the blog was some of the things we came across in DC. I think of the museum with the miner’s exhibit and I also think of the African American history museum with their exhibits of how capitalism grew right alongside the slave trade. How might your experience in DC affect your posture towards Capitalism as you continue to think outloud?
Hi Adam, Good question. One thought I had in the African American History Museum and also the Holocaust museum is that people are capable of justifying absolutely ANYTHING. Right now sex and domestic worker trafficking is happening all around us. More to your point, at its very best, government can provide a helpful framework, but individuals and institutions will always be working around any barrier to pursue own interest. That sounds depressing. But where there is injustice, so there is Jesus and hope.
Julie, This comment, “There is something about market forces which produce goods that sparks longing to consume in the human heart,” reminded me of a conversation I had with my financial advisor this week. He told me, “There is a ‘bug’ that you will catch as you watch your investments grow in the market, and you want to put more into it.” What are ways pastors can guide their congregations in finding a balance between being “good stewards” of possessions and fighting the materialistic bug?
Hi Kari,
As goes the leaders, so go the followers, no? When pastors and their spouses are flashy with wealth it signals that it is OK to be the same. I have also been present when pastors were fawning over someone with wealth. Ick. I do NOT think that pastors need be impoverished or their kids need to be badly dressed and have excess attention that way. Also not helpful.
Seems like Americans are much more likely to spend instead of save, so when teaching stewardship, an emphasis on living within one’s means is always needed, too.
Hi Julie, As I was reading your blog I started thinking of the prosperity gospel. Do you think there is a link between that and Polanyi?
Hi Diane,
I think I saw link between prosperity gospel ‘success’ in capitalist markets in Dr. Clark’s commentary on Polyani. I confess that all of this is a bit above my head…I noticed in the parts of east Africa where I have traveled (not lived) there was a LOT of prosperity gospel. I also noticed that the more “like” a western form of church the more ‘successful’ it was considered. I’m sure there are many connections.
Hey Julie Great post! Market forces are real and it is something that the church must contend with. In light of what we read how are you faring in the fight against market forces and how tough is the struggle?
Hi Daren, One way that market forces come to bear is in my family. My husband and I don’t always want the same things. I might be willing to choose a radically different lifestyle that is simply not an option for him. He has worked hard and created his own ‘American Dream’ and wants to live into it. I am the daughter of one who has done the same – I never went without. I can easily imagine less, less, and less. The prospect of less doesn’t sit as well with someone who has experienced not enough. These are hard thoughts for me to share. One thing that helps keep me grounded is profound gratitude.
Julie, I appreciate your openness in your post. You shared, “I feel buffeted by market forces. Sometimes I resist, and sometimes I ride the wave. At times, I crave more and other times, I feel guilt for what I possess while others have much less. May my genuine faith triumph over secular beliefs.” When do you feel this buffeting most intensely? What advice would you give to those who resonate with your experience?
Hi Chad, I feel it when I have to make high dollar purchasing decisions. Recently our car got totaled and we had to buy something to replace it. We made decisions in advance about what was necessary, set a budget and did not get emotional. I am very happy about how that turned out. At the root, decisions were made based on what is truly important long terms.
Hi Julie, thanks for your post. Have you ever heard of the slavery footprint? It’s quite sobering and sheds light on some of the dark sides to SRM.
https://slaveryfootprint.org/#