The Great Transformation And Heilbroner 's Economic Theory

Decent Essays

A market society was created and functions through material and ideological conditions. Through the works of Polyani’s The Great Transformation and Heilbroner’s The Economic Problem characteristics of the material conditions that make up market society will be outlined as well as the differences of how they functioned in the past versus the present. Rinehart’s ideas will be used to explain the changes in material conditions. Through Bendix’s summaries from Weber’s Economic Rationality, both the material and ideological conditions will come together to help readers understand the importance and functionality of a market society throughout the years. The first aspect of a market society comes from its material conditions. Polyani explains …show more content…

Symmetry is the duality in a tribe where a counterpart in another community or village will exchange with that tribe for what is needed (48). Centricity leads to the linking of different groups of producers in which a division of labor is created (48). By reciprocity and redistribution and also something called house holding which is the exchange of excess in a house to another family who needs it, a society will self-function because it members follow along with what they are used to and each person has something to offer others in exchange for what they need. Polyani says that self-regulating markets also work because humans want to achieve maximum gain (68). In a more modern society, everything is controlled by prices, even services (69). Everything is sold for a price and as mentioned in lecture, this still occurs in places like Tokyo where even air is packaged and sold (Lecture, January 5th). Prices create incomes and incomes are used to buy products, which brings the flow of money back into society. Land, labour and money becomes the prices in which one pays for land such as rent, wages from a job and interest one can get from a mortgage being paid or from borrowing money. These aspects are crucial parts of the industry and must be organized into a market in order to work smoothly. The markets form the economic system (72). Export production changing from being organized by the wealthy in the middle ages, to the merchants

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