Understanding Self Regulation while using Self Control
Mama said there would be days like this. This is a saying my mother said when your normal flow is distracted by something that takes you aback or off course. Such is the case in this week’s reading on The Great Transformation by Karl Polanyi. I exhausted huge mental and emotional capacity, with frustration and moments of uncertainty trying to capture the true essence of the reading while bringing my dictionary alongside to unpack several words as well as concepts.
Polayni’s book explores the cause of a reverberating calamity, the collapse of the international economic system. Polayni, a social theorist, was raised in Budapest within a family known for social engagement and intellectual prowess. Polanyi shares his thoughts on the calamity with the foundational premise, the self-regulated market was critically flawed.
Polanyi argues that contrary to popular belief, markets have been of marginal importance in traditional societies throughout history.
Using an embedded theory, he believes the economy is embedded in society, constantly influenced by social relations. The market economy emerged after a prolonged battle against these traditions. He suggests the balance-of-power system could not ensure peace once the world economy had failed. He renders a new idea: a self-adjusting market with implications of a stark utopia.
His defense is presented through a self-regulating market. “A self-regulating market demands nothing less than the institutional separation of society into an economic and a political sphere. [1] Such a dichotomy is, in effect, merely the restatement, from the point of view of society as a whole, of the existence of a self-regulated market” [2}
The key to the institutional system of the nineteenth century was the laws governing market economy.. Another of Polanyi’s charge against market liberalism was his assertion that it treats land and labor as “fictitious commodities”.[3] Nothing could be more contrary to “the traditional organisation of human society than a system that disposes of land and labour as if they are “cucumbers”. Polyani believes the market providing goods to members would harm society and cause conflict with social mechanisms.
The irony of Polayni’s life and work is how it mirrors today. Liberalism made great strides during his day, but it provoked conservative and populist backlash. Polayni, born in the late 19th century, was a Jewish man who had to encounter several battles with antisemitism. Social anxieties were heightened in his day through xenophobia against immigrants. Many have suggested that social influence is the heartbeat of Polayni’s thought process. The key to the institutional system of the nineteenth century was the laws governing the market economy. These are some of the ways I see Polayni making his map.
Dr. Jason Clark draws his own comparison, mapping out the move of aseity from the Christian Community into the life of aseity in the market, where “the market becomes the ontological basis for all relationship and identity.” [4] Clark believes that Christians’ social life should not be subordinate to the market. [5}
In summation, Polanyi suggests a primary tenant is focusing on ensuring that all people have the right to earn a decent livelihood. Capitalist economics have several requisites, such as purchasing selling and the egregious exploitation of labor, which we see playing out in increasingly in our Western Hemisphere. This is a pathway to poverty which plagues so many here in America. There is a fight for minimum wage and equal wages but this cannot be accomplished without change. The change Polanyi suggests? I’m not sure how effectively Polanyi’s method would play out in modern times.
This was truly a difficult read and perhaps a more layman’s approach to writing would help people such as myself to grasp the content clearer so that if one wants to write a blog post it will not look and sound fuzzy and foggy.
[1] Karl Polanyi, The Great Transformation: The Political and Economic Origins of Our Times, (Boston, MA, Beacon Press, 2001), 72.
[2] Polanyi, 74.
[3} Polanyi, 75
[4] Clark, Jason Paul, “Evangelicalism and Capitalism: A Reparative Account and Diagnosis of Pathogeneses in the Relationship” (2018). Faculty Publications – Portland Seminary. 135
[5] Clark, 127.
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Daren Jaime
14 responses to “Understanding Self Regulation while using Self Control”
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Hi Daren, Good job persevering through this week’s challenging ideas! Yes, mama said there’ll be days like this! The Shirelles taught me that. What observations have you made in the community you serve regarding the ‘disembedding’ of the economy from society?
Hi Elysee! Thank you. To answer this I will say, one significant observation is the shift towards large-scale, impersonal businesses that prioritize profit over local needs. Small, home grown locally owned businesses have gradually been replaced by larger chains, which often have fewer authentic ties to the community and this paves the way for a problem as they are less likely to reinvest in local initiatives or provide personalized services. This potentially can weaken a community.
Hi Daren,
Thanks for sharing of your struggles with this reading–I, too, read this with a dictionary and remained quite confused. I am curious if you have any thoughts on what kind of change may help break the poverty cycle in the US?
Hi Kari! There must be an investment in people and communities. Investments are made but not to equal the playing field. Equality and equity are two major components to break this cycle. There are capitalistic agenda aimed at furthering the divide. This must be countered with an authentic plan on bridging the gap.
Hi Daren, 100% with you on the difficulty of reading and utilizing the dictionary. I felt incompetent to write a blog this week. I have seen some church becoming involved in little economic communities – maybe coffee shops or bicycle repair or whatever as a means of supporting not only the ministry of what we consider ‘church’ but to employ people and impact communities. If you have any examples of this work in your areas of influence, what are your impressions of effectiveness? Is this a model for good or evil or other?
Hey Julie thanks for the encouragement. Tough read and I was stretched. One trend which has worked to accentuate the work of churches which i see and am also engaged with is having separate not for profits which target community development. These CDC’s provide access to resources to compliment the work in the community. We actually have one and it has improved business opportunities while also giving the community access to resources and helps right in their own backyard. This strengthens and builds the community by having these amenities right in their very own backyard. Particulary for those who want to stay and shop local.
Hi Daren, Sounds like a lot of us had a hard time with this book. You mentioned that Polanyi said that traditionally markets have had been of marginal importance iin traditional societies. I am wondering if you think that markets are marginally influential today or more impactful. I question this because it seems every day we get reports about the markets risings and fallings. Any thoughts?
Hey Diane! Thanks for your question. The role of markets has indeed transformed significantly from their more peripheral role in traditional societies to a becoming from my perspective highly influential force today. Traditionally, markets in certain societies were localized, providing for basic needs and fostering community trade. Economic life was centered around agriculture and production within local communities, with social and cultural values often prioritizing stability over profit.
Today, however, markets have become deeply embedded in nearly every aspect of our daily lives, far beyond their historical confines. Globalization and technological advancements have also interconnected economies, making markets a prime player in shaping individual and national wealth, job opportunities, and even public policy.
Hey Daren, I agree, it was a tougher read than usual, especially because I am NOT an economics person! I supposed, however, we should ALL be economics people to some extent; it would help us make more informed decisions for instance, when it’s time to VOTE…
Considering the challenges in understanding Polanyi’s ideas, are there specific aspects of his theories that you think more people should understand, and how might that increased understanding change the conversation around economic systems today?
Hi Debbie! Tough indeed but we pressed through.
Giving thought to your question, If more people understood Polanyi’s perspective on the disembedding of the market, it might shift conversations about economic systems. Rather than accepting markets as natural or neutral forces, maybe looking at policies that focus on embedding economic practices within ethical and social means could be a great start.
Daren, I appreciate your thoughtful reflection on Polanyi’s and Clark’s work! Considering the complexities you’ve pointed out in Polanyi’s arguments regarding the self-regulating market and its societal implications, what do you believe are the most important lessons from his work that can be applied to tackle contemporary economic challenges, especially concerning labor rights and social equity?
Hey Chad. Thanks brother from my perspective, Polanyi’s work suggests that we need to recognize and protect the social value of labor beyond its economic value. For example, policy approaches that ensure living wages, limit the gig work where we can, and also enhance job security. This would align with his ideas about safeguarding human and social needs against purely market-driven considerations.
Hi Daren, thanks for your post. It was a hard reading, but I hope you found some nuggets to take away.
What do you think about ensuring all people have the right to earn a decent livelihood? How do you encourage people who lean more towards SRM in this area?
Hey Christy! I have a couple to glean from. Ensuring everyone has the right to earn a decent livelihood is fundamental to a stable and fair society. Decent livelihoods really move a person from surviving to thriving. This allows individuals to participate fully in society, fostering health, education, and opportunities for advancement. This approach benefits individuals while strengthening the entire economic system by creating a more resilient workforce and a more equitable society.
For those who favor the self-regulating market (SRM) approach, it leans toward minimal government intervention and the efficiency of market forces, it can help to highlight how a decent livelihood aligns with the goals of a strong economy. Living a decent quality of life is not a bad thing for anyone and everyone deserves it.