The Shift from Traditional Societies to a Market Society

The pivotal second chapter of Adam Smith's Wealth of Nations, "Of the Principle which gives occasion to the Division of Labour," opens with the oft-cited claim that the foundation of modern political economy is the human "propensity to truck, barter, and exchange one thing for another."1 This formulation plays both an analytical and normative role. It offers an anthropological microfoundation for Smith's understanding of how modern commercial societies function as social organizations, which, in turn, provide a venue for the expression and operation of these human proclivities. Together with the equally famous concept of the invisible hand, this sentence defines the central axis of a new science of political economy

A description of the eighteen hundreds in one word would be amend. The trial and era years were in full swing and many people had thoughts about what was right and what was wrong. People had learned from past events such as the American revolution and America was growing into a powerful self-ruling nation. The market revolution brought upon the reform impulse which was impactful to events such as the abolishment of slavery and women’s rights.

The market model of economy, developed by Adam Smith entails a freely flowing economy that places little or not restriction on occupation allowing individuals utmost rights. America took on an ethos of a mixed economy of market and command that struck a successful economic equilibrium. American economy also changes with different periods of history. The Civil War had lit the spark of industrialization needed to enhance the American economy. Technology advanced by leaps and bounds and free labor was done away with to make room for Industrialization and Adam Smith’s market model of capitalism. Capitalism was a promoter of the entrepreneur and individual success. It was only natural that during this time of private interest the gap between rich and poor would be greatly widened and a state of disorder might arise. Capitalism was a new ideology and drastic labor problems and social disorder arose because Americans were simply adjusting to (and taking advantage of) the new system.

Market Revolution mostly changes the politics of America and the Society. The advent of the production and the factory system was permanently changed the traditional master-apprentice relation. It also sequenced the traditional craftsmen from the business by making them break the task in the production of the manufactured goods (Larson, J. L. (2009). This brought a big class of the wage laborers in most of the cities mostly from the northern side.

This onslaught of capitalism directly revolutionized modern industrialism as well as the industrial city. Machines morphed the predominately agricultural nation to a herd of factory and corporate workers. Swarms of people, both native and immigrant, flocked to major cities. “The present century has been marked by a prodigious increase in wealth-producing power. The utilization of steam and electricity, the introduction of improved processes and labor saving machinery, the greater subdivision and grander scale of production, the wonderful facilitation of exchanges, have multiplied enormously the effectiveness of labor.”(George, p.20) The major problem with this newfound industrialism was the way in which the workforce was treated. Capitalism was supposed to provide a way out, a way ascend the financial and social staircase, if you worked hard enough. This however was not the case, if you were a loyal, hardworking employee you simply got to keep your job, and if you were in any way injured or incompetent you were fired.

We are living in market society, which is so different from previous societies. In market society, the whole of society is a system of self-regulating market (Polanyi 43). In order to make the market society function, people need to think and act in certain ways(Polanyi 68). For example, people in market society think that economic relations are much more important than interpersonal relations (Polanyi 44). Polanyi calls the emergence of market society “the great transformation”. My thesis statement is that the shift to market society is a

Every facet in the way of life was affected by the Market Revolution, stopped the

“It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.” This is a quote from the book Wealth of Nations, which Adam Smith wrote, addresses well about why and what reason people work for. The butcher, the brewer, or the baker does not cut, stir, or bake because they want to please the customer or to feed the poor, but to earn money and for their own happiness. Adam Smith, who fully understood the concepts of capitalism and free market system, became one of the most well respected economists throughout the world. Smith became famous because of his philosophy of economics. Because of his thoughts on economics, today he is well known as the “father of

farmers who lived on it and grew crops. Labour was minimal and only when something needed to be done. Money was never of much importance because it did not grow crops, live stock or water. These commodifications began to add value to all types of materials, which in fact devalued things. Although it is quite odd to put prices or value on such items, the market grew stronger in society because of them. As the market had progressed it began to take a hold of peoples minds. The intangible values became less valuableSociety had no choice but to follow the market as other solutions to the economic problem were overturned. The market society developed as people began searching for work outside of what families had been doing for centuries.

One topic subject to never-ending debate that is reviewed, revised, then and disputed among scholars, is the market and the economy. In the book, "The Mind and The Market" by Jerry Muller (2002), he discusses the different viewpoints of scholars about capitalism in the market and the influence society holds on it. This writing is comprised of summaries of several reviews from a variety of authors, which will include their viewpoints, their criticism, and an overall review from Muller 's work. These authors include Brian Fox, Patrick Murray, Charles Tilly, and Fritz Ringer. Each author originates from respected and prestigious journals from different universities, programs, and other education systems. All intellectuals are experts in their field of study with a background in either philosophy, history, or economy, making their viewpoints meaningful, insightful, and relevant. Following the summary of each review will be a comparison and contrasting piece, continuing into an evaluation addressing if they captured the book in an appropriate way. Concluding the essay will have an input of my own personal review of the book. As shown, the reviews vary with their personal opinions regarding the positives and negatives of Muller 's work.

     In capitalism the worker is a commodity in so as to produce the products needed for the market. Each individual does what they are best at producing and if everyone does this then each person’s needs are taken care of. When each person is working they are paid money for their labor. With this money they can buy goods, which can fulfill their own desires, and so the trading of money for goods can take place in a capitalist market driving the economy forward (Smith 158).

What also characterizes market society is the emergence of the concept of “fictitious commodities”. Fictitious commodities refer to labor, land, and money (Polanyi 72). “fictitious” implies that they are actually not commodities (Polanyi 72). They are turned into commodities for the effective operation of market society (Polanyi 72). In market society, everything is provided as a commodity. As the major elements of industry, labor, land , and money need to be provided for maintaining productivity and they can only be provided when they are on the market for sale (Polanyi 72). Differently, “Under the feudalism and the gild system land and labor formed part of the social organization itself ” (Polanyi 69). Land were crucial for feudal order, status and function of which “were determined by legal and customary

To compare and contrast market fundamentalist and protectionist and to tell how these play out in Silicon Valley it is important to understand what Polanyi’s double movements are. Karl Polanyi argues that two opposing movements constitute markets in societies: Marketizers and Protectionists. They disagree whether the market dynamics assure optimal use of market resources or not. They also disagree if the state should play a limited to no role in the economy or if it should play a more important role.

One expects Weber to Capitalism is a result of Protestantism or to be more specific, Calvinism. Calvinism believes God has granted few with salvation whereas others have to go through damnation. This virtue isn't dependent on their good or bad actions/ deeds but because God wanted it in a certain way. This belief made believers of Calvinism worried about their salvation and made them invest more efforts into economic success. This, in turn, made them believe that they were the chosen favourites of God. Furthermore, the profits made by Calvanists were re-invested into the business for further profits rather than self-indulgence. Hence, the concept of "Protestant ethic" came into place which generally refers to desire of having enormous economic success and will of working hard. This concept of "work ethic"

Both Karl Marx and Max Weber assert that capitalism is the dominion of abstractions and the irrational accumulation of abstract wealth for the sake of wealth. For Marx, the state of capitalism is entrenched in the social classes to which people have bben assigned. Capitalism, according to Marx, is a result of the bourgeoisie 's ascent to economic and political power. This fuels the manifestation of a system that exploits the labour power of the lower socioeconomic classes for the gain of the higher socioeconomic classes. Weber understands the state of capitalism to be the end product of the work ethic of the Protestant branches of Christianity and the secularization of Protestant puritanism, which helped fuel rationalism. Capitalism, according to Weber, is to be understood as the relations and methods of production and commodities, now rationalized. Ultimately, Marx ascribes the ascent of capitalism to the exploitation of people and power, while stressing that such a system can be overcome by a communist revolution, whereas Weber states that such a system is the result of cultural choices and is not as convinced that capitalism can be overcome.