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Economic liberalism undermines social fabric from "summary" of The Great Transformation by Karl Polanyi

In examining the impact of economic liberalism on society, it becomes evident that the pursuit of profit and self-interest at the expense of social cohesion can have profound consequences. When economic activity is driven solely by market forces without regard for the well-being of individuals or communities, the social fabric that binds people together begins to unravel. The commodification of labor and land, as advocated by proponents of economic liberalism, leads to the erosion of traditional social relationships and values. People are reduced to mere factors of production, valued only for their ability to generate profit. This commodification not only devalues human life but also disrupts the delicate balance of social relations that sustain communities. Moreover, the unfettered pursuit of profit under economic liberalism creates a culture of competition and individualism, where solidarity and mutual support are overshadowed by self-interest. In this hyper-competitive environment, individuals are pitted against each other in a relentless struggle for economic survival, leading to increased social alienation and isolation. The emphasis on market mechanisms as the primary means of organizing economic activity also results in the subordination of social needs to the demands of the market. Basic necessities such as healthcare, education, and housing are treated as commodities to be bought and sold, rather than as fundamental rights that should be guaranteed to all members of society.
  1. Economic liberalism undermines the social fabric by weakening the bonds of trust and cooperation that hold communities together. It fosters a culture of individualism and materialism that prioritizes profit over people, leading to the fragmentation and disintegration of social relationships. Ultimately, the pursuit of economic gain at the expense of social well-being threatens the very foundation of society itself.
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The Great Transformation

Karl Polanyi

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