Daniel Fusfeld (1988, pp 264-265) took a General Economic History class under Karl Polanyi at Columbia University and offers some insights into Polanyi’s economic thinking. Fusfeld places an emphasis on two central concepts Polanyi utilized in substantive economics, and “great transformations” which have transmuted economic systems throughout history. Polanyi’s teachings offer a window into how societies have arrived at capitalism as well as how values have changed and transformed the concept of scarcity
The first of Polanyi’s concepts, which Fusfeld (1988, pp. 264-265) introduces, is that of substantive economies. Testing his theory first with the structure of tribal economies, in which Polanyi argued that in tribal societies the assumption acquisitive motive, that is the individual motive to acquire material property, was not the incentive in tribal societies, that instead they received fulfillment in social interactions. Polanyi referred to three categories of economic integration, reciprocity, redistribution, and market exchange, the latter of which was less relevant in tribal societies, and instead arose to prominence with capitalism.
Fusfeld (1988, pp. 255-256) expands on Polanyi’s teachings stating that in tribal economies, reciprocity and redistribution were both central to the preservation of social order. …show more content…
29-30 further builds upon the bases of his teachings as explained by Fusfeld, arguing that the root of the word economic has two meanings which have no shared attributes. The formal meaning is logic based and substantive from fact. For Polanyi, the substantive definition implies that choice will never be caused by scarcity, and formal implies that scarcity exists and is a primary influence on choice. He defines substantive as the laws of nature, and formal as the laws of the mind, and believes that only the substantive definition is proficient in the examination of empirical
The first of Polanyi’s concepts, which Fusfeld (1988, pp. 264-265) introduces, is that of substantive economies. Testing his theory first with the structure of tribal economies, in which Polanyi argued that in tribal societies the assumption acquisitive motive, that is the individual motive to acquire material property, was not the incentive in tribal societies, that instead they received fulfillment in social interactions. Polanyi referred to three categories of economic integration, reciprocity, redistribution, and market exchange, the latter of which was less relevant in tribal societies, and instead arose to prominence with capitalism.
Fusfeld (1988, pp. 255-256) expands on Polanyi’s teachings stating that in tribal economies, reciprocity and redistribution were both central to the preservation of social order. …show more content…
29-30 further builds upon the bases of his teachings as explained by Fusfeld, arguing that the root of the word economic has two meanings which have no shared attributes. The formal meaning is logic based and substantive from fact. For Polanyi, the substantive definition implies that choice will never be caused by scarcity, and formal implies that scarcity exists and is a primary influence on choice. He defines substantive as the laws of nature, and formal as the laws of the mind, and believes that only the substantive definition is proficient in the examination of empirical