Polanyi and Schumpeter: Transitional processes via societal spheres. Issue 6 (2nd November 2022)

• Record Type: Journal Article
• Authors: Hager, Theresa; Heck, Ines; Rath, Johanna
• Is Part Of: European journal of the history of economic thought. Volume 29:Issue 6(2022)
• Page Start: 1089
• Page End: 1110
• Publication Date: 2022-11-02
• Subjects: Karl Polanyi -- Joseph A. Schumpeter -- transformation -- institutional change -- societal spheres; B25; Economic history -- Periodicals; 330.94
• DOI: 10.1080/09672567.2022.2131865
• Languages: English
• ISSNs: 0967-2567

Abstract

Abstract: We examine parallels and differences, intersections and complementarities in the notions of societal transition by Karl Polanyi and Joseph A. Schumpeter. Considering their intellectual heritage, methodology and scope, we propose a three-sphere framework to analyse their theories and study the interdependencies within capitalism. The three spheres essential to both thinkers are the political, the socio-cultural and the economic: the latter dominates the others in capitalist societies. The resulting rationalisation (Schumpeter) and commodification (Polanyi) distort the socio-cultural sphere and transcend towards the political sphere which undermines democracy. Applying our framework, we identify similar transitional mechanisms but derive different implications for society.