The Great Transformation

Throughout the book, Polanyi repeatedly argues for what he terms the “embedded” nature of economy:“The term ‘embeddedness’ expresses the idea that the economy is not autonomous, as it must be in economic theory, but subordinated to politics, religion, and social relations” (xxiii-xxiv). Embeddedness refers to the nature of economics, in that it represents merely an aspect of society; therefore, economics can neither be extricated from society nor can society be subjugated to it. This argument represents a direct and critical response to the belief of market liberals that society should be subjugated to the market.

Polanyi also uses the embedded nature of the economy in order to refute liberal assertions that individuals are motivated entirely by profit. Man “does not act so as to safeguard his individual interest in the possession of material goods; he acts so as to safeguard his social standing, his social claims, his social assets” (48). Polanyi argues that social positionality represents the end goal—that all of the choices individuals make are to safeguard one’s relationships. In this way, Polanyi constructs the economy as a means by which individuals can assure their social positionality; however, Polanyi is careful to argue that the economy does not represent the only means by which one can achieve one’s goal.