By Steven Pressman (eds.)
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1998) Understanding Modern Money, Northhampton, MA: Edward Elgar. 3 The Protective Response and the Evolution of the Capitalist State James Ronald Stanfield and Jacqueline B. Stanfield [Polanyi's] arguments - and his concerns - are consonant with the issues raised by the rioters and marchers who took to the streets in Seattle and Prague in 1999 and 2000 to oppose the international financial institutions. — Joseph E. Stiglitz, 2001 Introduction In his foreword to the new edition of Polanyi's The Great Transformation, from which we excerpted the epigraph above, Stiglitz asserts that: economic science and economic history have come to recognize the validity of Polanyi's key contentions.
The market economy therefore requires a market society and it is in the market society, required for the functioning of a market economy, that one finds many of the characteristic stresses and strains of market capitalism. The socialization necessary for the operation of a market economy requires a legitimation, even a moral imperative, of selfinterested bargaining behavior, and this socialization is itself destructive of the community and kinship bonds by which the social fabric has been traditionally woven.
This is really an extension of the principle of minimal dislocation. It also extends the previous point regarding the growth of bureaucracy and the growth of the state in general. Put simply, it is not necessary for the pragmatic state to get involved in problem solving until the problem is identified as one that requires collective action. 5. Urgency and irreversibility. Some problems require quick action because the consequences of the problem are irreversible. This is where reasonable value must come to the forefront of public policy decision-making and state action.
Alternative Theories of the State by Steven Pressman (eds.)