Chapter 2, “Beyond the Economistic Fallacy,” is largely focused on Polanyi’s argument that markets are embedded in specific institutional arrangements. The emergence of a distinctly market society in the nineteenth century was a consequence of political acts. And the countermovements by groups seeking protection, along with the state’s role as a universal source of support for both countermovements and free market advocates, contributed to the volatility and breakdown of social systems in the early- and mid-twentieth century. The chapter moves through Polanyi’s historical argument before describing the conceptual tools and methodological approaches that he employed to such great effect. In the paragraphs that follow, I summarize the main points of discussion before concluding briefly with some questions about the meaning of the local in Polanyi’s work and how this might affect using Polanyi today.
The Speenhamland Act of 1795 illustrated for Polanyi the way in which the existence of markets was transformed into a market society. Continue reading