Karl Polanyi demonstrated the fallacy of the idea that the market was self-regulating, which is an idea first articulated by Adam Smith. Similarly, Polanyi argued extensively in this book that Smith was wrong to suggest that the division of labor in society depended upon markets, or, humans’ natural inclination to “barter, truck and exchange.” First, Smith reasoned that the division of labor and exchange are connected. Smith believed the DOL was connected to exchange as the growth is rooted in the increasing DOL, such as specialization and increasing production of commodities. Exchange is enhanced as the DOL increases the production of commodities by saving time, application of proper machinery and the improvement of dexterity of
Karl Polanyi demonstrated the fallacy of the idea that the market was self-regulating, which is an idea first articulated by Adam Smith. Similarly, Polanyi argued extensively in this book that Smith was wrong to suggest that the division of labor in society depended upon markets, or, humans’ natural inclination to “barter, truck and exchange.” First, Smith reasoned that the division of labor and exchange are connected. Smith believed the DOL was connected to exchange as the growth is rooted in the increasing DOL, such as specialization and increasing production of commodities. Exchange is enhanced as the DOL increases the production of commodities by saving time, application of proper machinery and the improvement of dexterity of