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The Critiques of Capitalism by Karl Polanyi, Michael Thompson, and Tawney: A Comprehensive Exploration

Donald Ward

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Published in The Moral Economists: R H Tawney Karl Polanyi E P Thompson And The Critique Of Capitalism

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Capitalism, as an economic and social system, has been subjected to numerous critiques since its inception. Three notable figures who have provided incisive critiques of capitalism are Karl Polanyi, Michael Thompson, and R.H. Tawney. This article aims to provide a comprehensive exploration of their critiques, examining their key arguments and implications.

Karl Polanyi: The Great Transformation

Karl Polanyi's seminal work, "The Great Transformation," published in 1944, offers a powerful critique of capitalism. Polanyi argues that capitalism's emergence was a historical anomaly, disrupting traditional economic and social structures. He emphasizes the concept of the "embedded economy," where economic activities are deeply intertwined with social and cultural norms.

The Moral Economists: R. H. Tawney, Karl Polanyi, E. P. Thompson, and the Critique of Capitalism

4.2 out of 5

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According to Polanyi, capitalism's attempt to create a "self-regulating market" by separating the economy from society led to severe social and economic dislocations. He describes the "double movement" of capitalism, where the expansion of the market economy leads to resistance from society, resulting in protective measures such as trade unions, social welfare systems, and regulations.

Polanyi's critique highlights the inherent tensions between the market economy and social values, emphasizing that capitalism cannot exist without some form of social embeddedness.

Michael Thompson: Polanyi's Legacy and Critique

Michael Thompson, in his book "Polanyi's Defense of Society," published in 1990, expands on Polanyi's critique of capitalism. Thompson argues that Polanyi's emphasis on the embedded economy has been misinterpreted as a rejection of markets.

Thompson contends that Polanyi recognized the importance of markets but criticized their dominant role in society. He argues that markets should be embedded within social institutions and values to prevent the destructive effects of commodification and economic inequality.

Thompson's critique emphasizes the need for a balance between markets and social embeddedness, advocating for a "socially embedded economy" that prioritizes human well-being over profit maximization.

R.H. Tawney: The Acquisitive Society

R.H. Tawney's "The Acquisitive Society," published in 1920, provides a moral critique of capitalism. Tawney argues that capitalism has created an "acquisitive society" where the pursuit of wealth becomes the dominant goal, leading to social inequality and alienation.

Tawney criticizes capitalism for its emphasis on individualism and competition, which undermine social solidarity and cooperation. He argues that the pursuit of profit often leads to exploitation of workers and environmental degradation.

Tawney's critique calls for a more just and equitable society, where economic activities are guided by social purpose and human needs, rather than the accumulation of wealth.

Convergence and Divergence in the Critiques

While Polanyi, Thompson, and Tawney share common critiques of capitalism, they also have distinct perspectives:

Polanyi focuses on the historical and sociological dimensions of capitalism's disruptive effects.
Thompson extends Polanyi's critique while emphasizing the importance of embedding markets within social values.
Tawney provides a moral critique, highlighting the negative social and ethical consequences of capitalism.

Despite these differences, their critiques converge on several key points:

Capitalism's separation of the economy from society leads to social and economic disturbances.
Markets should be embedded within social institutions to prevent their destructive effects.
Capitalism's emphasis on individualism and profit maximization undermines social solidarity and human well-being.

Implications for Modern Capitalism

The critiques of Polanyi, Thompson, and Tawney remain relevant in understanding the challenges of contemporary capitalism:

Financialization: The growing dominance of finance over the real economy can lead to financial instability and income inequality.
Commodification: The expansion of markets into non-economic spheres, such as healthcare and education, can undermine social values.
Environmental Degradation: Capitalism's relentless pursuit of growth can lead to environmental destruction and resource depletion.

Their critiques suggest that modern capitalism needs to be reformed to address these challenges. This may involve strengthening social protections, regulating markets, and promoting sustainable economic practices.

The critiques of Karl Polanyi, Michael Thompson, and R.H. Tawney provide a powerful indictment of capitalism's shortcomings. Their insights emphasize the importance of embedding markets within social values, prioritizing human well-being over profit maximization, and promoting social justice. These critiques continue to resonate in contemporary debates about the challenges and future of capitalism.

The Moral Economists: R. H. Tawney, Karl Polanyi, E. P. Thompson, and the Critique of Capitalism

4.2 out of 5