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Market expansion threatens livelihoods from "summary" of The Great Transformation by Karl Polanyi

Karl Polanyi explores the intricate relationship between market expansion and its impact on people's livelihoods in his seminal work, 'The Great Transformation'. He argues that the relentless pursuit of market growth poses a significant threat to individuals' ability to sustain themselves and their communities. As markets expand and commodify various aspects of human life, they often encroach upon traditional livelihoods and modes of subsistence. This encroachment can destabilize local economies and social structures, leading to widespread dislocation and hardship for those who are unable to compete in the newly formed marketplace. Moreover, the commodification of essential goods and services can have detrimental effects on vulnerable populations who rely on these resources for their survival. When basic needs such as food, shelter, and healthcare become subject to market forces, those who lack the means to participate in the market are left without access to essential resources. Furthermore, the emphasis on profit maximization in a growing market economy can drive exploitative practices that exploit both people and the environment. This exploitation can further threaten the livelihoods of marginalized communities who are often the most vulnerable to the negative impacts of market expansion.
  1. Polanyi's analysis underscores the importance of recognizing the social and ecological limits of market expansion. By understanding that unbridled market growth can jeopardize the livelihoods of individuals and communities, we can work towards creating a more sustainable and equitable economic system that prioritizes human well-being over profit.
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The Great Transformation

Karl Polanyi

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