{"id":11339,"date":"2017-02-01T21:54:59","date_gmt":"2017-02-02T05:54:59","guid":{"rendered":"http:\/\/dminlgp.com\/?p=11339"},"modified":"2017-02-01T21:54:59","modified_gmt":"2017-02-02T05:54:59","slug":"cautionary-tales-polanyis-the-great-transformation","status":"publish","type":"post","link":"https:\/\/blogs.georgefox.edu\/dlgp\/cautionary-tales-polanyis-the-great-transformation\/","title":{"rendered":"Cautionary Tales: Polanyi\u2019s The Great Transformation"},"content":{"rendered":"

I recognize from the outset that I am stepping far outside of my comfort zone to discuss economics and economic social history. Yet the foundational understanding for how goods are perceived and exchanged is inextricably intertwined with other aspects of our daily life\u2014religion, politics, philosophy, etc. How, then, do we attempt to understand Karl Polanyi\u2019s The Great Transformation[1]<\/strong><\/a><\/em> both when it was initially published, and in light of today\u2019s events?<\/p>\n

Polanyi suggests that the modern era experienced an economic shift that went hand in hand with the coalescing of national identity. Where once emerging economies of the nineteenth century remained stable, the transformation occurring throughout the early twentieth century precipitated massive social upheavals. These were not isolated events, but were the inevitable consequence of utopian market society, initially identified with a balance of power, the international gold standard, self-regulating markets, and the liberal state.[2]<\/a> This liberal market economy was based on the fictional capital of labor, land, and money.[3]<\/a> And, it was unsustainable, according to Polanyi.<\/p>\n

Contemporary Cautions<\/strong><\/p>\n

When reading a complex work such as this, I am curious about its contemporary relevance. What I come away with are three points worth noting: first, his analysis against fascism; next, the modern dangers and consequences of the neoliberal market of today, especially within the African context; and finally, his hopefulness on the freedom introduced by Jesus and attainable in modern society.<\/p>\n

Fascism Rising<\/strong><\/p>\n

While Polanyi was certainly not a capitalist, neither was he a communist. He was influenced more by Max Weber than Marx, yet does not fit into our simplistically drawn economic system boundaries. But he was most certainly opposed to fascism. As an Austrian immigrant first to England then North America, he argues that the rise of fascism during his time was due, not to a single factor or issues within a single nation-state,[4]<\/a> but to reaction to a \u201cmarket society that refused to function.\u201d[5]<\/a> It was as if the uncontrollable rubber band of the free market society was stretched too far and fascism stepped in to adjust it and relieve the tension: The fascist solution of the impasse reached by liberal capitalism can be described as a reform of the market economy achieved at the price of the extirpation of all democratic institutions<\/em>.[6]<\/a> This was not just the \u201cfault\u201d of the failed German state, but was fostered by global circumstances. But fascism deteriorates. As Polanyi notes in his final chapter, the Old Testament gave us knowledge of death, Jesus gave us knowledge of freedom, and living in an industrial society gave us knowledge of society. \u201cThe fascist answer to the recognition of the reality of society is the rejection of the postulate of freedom<\/em>,\u201d he acknowledges. \u201cThe Christian discovery of the uniqueness of the individual and of the oneness of mankind is negated by fascism. Here lies the root of its degenerative bent<\/em>.\u201d[7]<\/a><\/p>\n

Today\u2019s Neoliberal Markets<\/strong><\/p>\n

\"\"<\/a>In the introduction, sociologist Fred Block notes that \u201cneoliberals embrace the same utopian vision that inspired the gold standard.\u201d[8]<\/a> Neoliberalism, a modern take on laissez-faire capitalism, has shown itself globally to increase the wealth of the already wealthy, and perpetuate neo-colonial poverty in less affluent countries. Among African countries, for example, religious historian Elizabeth Isichei notes that the \u201ccash nexus\u201d of neo-liberal markets \u201chas shaped new concepts of the witch as a zombie-owning entrepreneur, or as the consumer of prosperity, rather than of life force.\u201d[9]<\/a> Likewise, Kenyan novelist Ngugiwa Thiong\u2019o suggests that Western neoliberalism became powerful by \u201ceating the flesh and drinking the blood of workers\u201d for the sake of development and as a sacrifice \u201cto the god of money\u201d[10]<\/a> This is especially evident in the neo-colonial aspects of the IMF and World Bank in Africa. If neoliberalism is truly a descendant of the free market laissez-faire economy of the discarded gold standard, then it, too will ultimately be unsustainable, as Polanyi suggests was the case for the modern free market society.<\/p>\n

Hopeful Freedom<\/strong><\/p>\n

Polanyi argues that removing the imagined commodities of land, labor, and money would prevent the market from being self-regulated and allow society to control the market.[11]<\/a> A free society would be regulated and planned, but always allow the right of non-conformity. Some would argue that \u201cfree enterprise and private ownership\u201d are \u201cessentials of freedom,\u201d and that \u201cplanning and control\u201d are \u201ca denial of freedom.\u201d[12]<\/a> Polanyi responds, \u201cregulation and control can achieve freedom not only for the few, but for all.\u201d[13]<\/a> Perhaps that understanding of freedom<\/em> is the root of Polanyi\u2019s solution to the failed market society, and also what many capitalists would critique. He argues that this \u201creality of society\u201d is not truly economic, but \u201cmoral and religious.\u201d[14]<\/a> As he has pointed to throughout the text, Polanyi does not believe market capitalism anything more than an impossible utopia. Fascism and socialism are the reactions against it, and fascism is morally degenerative. As Polanyi challenges, \u201cthe discovery of society is thus either the end or the rebirth of freedom. While the fascist resigns himself to relinquishing freedom and glorifies power which is the reality of society, the socialist resigns himself to that reality and upholds the claim to freedom, in spite of it<\/strong>.<\/em>\u201d[15]<\/a> Polanyi would encourage us to not fear the regulation and structure of a social market; there is no loss of freedom in it. Quite the contrary, he would argue. Regulation would encourage more<\/em> freedom and provide \u201cguarantees against victimization.\u201d[16]<\/a> I am not fully ready to jump on Polanyi\u2019s ideas yet, but am willing to affirm that market regulations provide potential control that actually allows more freedom\u2026 for all. As one of my favorite authors eloquently puts it,<\/p>\n

\"\"<\/a>In your language you have a form of poetry called the sonnet\u2026There are fourteen lines, I believe, all in iambic pentameter. That\u2019s a very strict rhythm or meter\u2026And each line has to end with a rigid pattern. And if the poet does not do it exactly this way, it is not a sonnet\u2026But within this strict form the poet has complete freedom to say whatever he wants\u2026You\u2019re given the form, but you have to write the sonnet yourself. What you say is completely up to you<\/em>.[17]<\/a><\/p><\/blockquote>\n

[1]<\/a> Karl Polanyi, The Great Transformation: The Political and Economic Origins of Our Time<\/em> (Boston: Beacon, 1944, [2001]).<\/p>\n

[2]<\/a> Ibid., 3.<\/p>\n

[3]<\/a> Ibid., 76.<\/p>\n

[4]<\/a> Ibid., 246.<\/p>\n

[5]<\/a> Ibid., 248.<\/p>\n

[6]<\/a> Ibid., 245.<\/p>\n

[7]<\/a> Ibid., 268.<\/p>\n

[8]<\/a> Ibid., xxxiii.<\/p>\n

[9]<\/a> Elizabeth Isichei, Voices of the Poor in Africa<\/em> (Rochester, NY: University of Rochester Press, 2002), 153.<\/p>\n

[10]<\/a> Ngugiwa Thiong\u2019o Devil on the Cross<\/em> (Johannesburg: Heinemann, 1987), 89. \u00a0Thanks to Dr Kip Lines for resources helping me understand the implications of neoliberalism in Africa.<\/p>\n

[11]<\/a> Ibid., 259.<\/p>\n

[12]<\/a> Ibid., 265.<\/p>\n

[13]<\/a> Ibid.<\/p>\n

[14]<\/a> Ibid., 267. Block put it this way: morally, \u201cit is simply wrong to treat nature and human beings as objects whose price will be determined entirely by the market,\u201d for \u201cnature and human life have almost always been recognized as having a sacred dimension.\u201d xxv.<\/p>\n

[15]<\/a> Ibid., 268. emphasis mine.<\/p>\n

[16]<\/a> Ibid., 266.<\/p>\n

[17]<\/a> Madeline L\u2019Engle, A Wrinkle in Time<\/em>, (New York: Farrar Straus Giroux, 2012), 199.<\/p>\n","protected":false},"excerpt":{"rendered":"

I recognize from the outset that I am stepping far outside of my comfort zone to discuss economics and economic social history. Yet the foundational understanding for how goods are perceived and exchanged is inextricably intertwined with other aspects of our daily life\u2014religion, politics, philosophy, etc. How, then, do we attempt to understand Karl Polanyi\u2019s […]<\/p>\n","protected":false},"author":85,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[801,388,802,803,4,804],"class_list":["post-11339","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bologna","tag-capitalism","tag-fascism","tag-neoliberal","tag-polanyi","tag-sonnet","cohort-lgp7"],"acf":[],"_links":{"self":[{"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/posts\/11339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/users\/85"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/comments?post=11339"}],"version-history":[{"count":0,"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/posts\/11339\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/media?parent=11339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/categories?post=11339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.georgefox.edu\/dlgp\/wp-json\/wp\/v2\/tags?post=11339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}