ECON 001A Lecture Notes - Lecture 18: Industrialisation, Classical Liberalism, Centrality
19 May 2020
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Document Summary
Efforts of free market to disembed the economy from society are doomed to fail. Theorists can claim that any failures were not the result of the design but a lack of political will in its implementation. Advocates have airtight excuse for historical failures. Argues that market societies are constituted by two opposing movements the laissez-faire movement to expand the scope of the market, and the protective countermovement that emerges to resist the disembedding of the economy. Polanyi laissez-faire was planned; planning was not . Argues that the creation of protective barriers against the working of global markets was a spontaneous and unplanned response by all groups in society against the impossible pressures of a self-regulating market system. Had to have happen to prevent the disaster of a disembedded economy; movement toward laissez-faire economy needs the countermovement to create stability double movement . Tensions increased until fascism gained the strength to seize power and break with both laissez-faire and democracy.
