In his 1944 book ‘The Great Transformation’, political economist Karl Polanyi describes Capitalism as a commodity fiction.

Capitalism, or the market society, is constructed on the foundation of a fiction – namely that nature, labour and money are commodities;they are produced for the marketplace, for consumption.

But Nature is not a commodity. It is not produced by us for market consumption.

Neither are human being(who provide labour). Not even money.

But in the market system, all these three are treated as commodities.

The result is a phenomenal growth, but also massive externalities in the form of environmental destruction, poverty and cyclical monetary breakdowns.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.