Polanyi
Berrak Kibar
2011300291
EC 412.01
Final Paper
"Polanyi argued that land, labor and money became fictitious commodities in the age of capitalism. Consider whether we can add knowledge to the above list."
Polanyi introduced a variety of new terms into our lives; some of which are of extreme importance, such as fictitious commodities, embeddedness and double movement. He believed that economic activities were in fact embedded in social life and were affected by noneconomic activities and believed that “a market economy can exist only in a market society” (Polanyi, 1957: 71). According to him, markets have always existed except for the most primitive societies, and with the start of the development of a market economy as we know it, the factors of production were started to become commodified. Polanyi focused on the commodification of land, labor and money in the age of capitalism in his work, but the capitalist scene in the world we are living in now is subjected to many …show more content…
For example, capital owners that want to obtain the maximum amount of profits in a competitive environment that drives the generation of more and more knowledge, information, innovation and creativity; choose not to pay a high price for knowledge as a factor of production but expect a high price to be paid for the output that is produced.
Another problem is that although there is a high, and ever-increasing level of competition in this market, capitalist firms are still clinging onto the high levels of profits coming from knowledge, information, creativity and innovation. In a market with such fierce competition and diversity, it is possible to question whether this system with monopolistic ideals is sustainable or
2011300291
EC 412.01
Final Paper
"Polanyi argued that land, labor and money became fictitious commodities in the age of capitalism. Consider whether we can add knowledge to the above list."
Polanyi introduced a variety of new terms into our lives; some of which are of extreme importance, such as fictitious commodities, embeddedness and double movement. He believed that economic activities were in fact embedded in social life and were affected by noneconomic activities and believed that “a market economy can exist only in a market society” (Polanyi, 1957: 71). According to him, markets have always existed except for the most primitive societies, and with the start of the development of a market economy as we know it, the factors of production were started to become commodified. Polanyi focused on the commodification of land, labor and money in the age of capitalism in his work, but the capitalist scene in the world we are living in now is subjected to many …show more content…
For example, capital owners that want to obtain the maximum amount of profits in a competitive environment that drives the generation of more and more knowledge, information, innovation and creativity; choose not to pay a high price for knowledge as a factor of production but expect a high price to be paid for the output that is produced.
Another problem is that although there is a high, and ever-increasing level of competition in this market, capitalist firms are still clinging onto the high levels of profits coming from knowledge, information, creativity and innovation. In a market with such fierce competition and diversity, it is possible to question whether this system with monopolistic ideals is sustainable or