Polanyi's Revenge

Abstract

Since the beginning of the financial crisis of 2008, authors and politicians have regularly reminded us of the duality of crisis and opportunity. For policymakers, administrations, and candidates, crises represent opportunities to implement long-desired reforms, seize the public stage, and reframe old arguments in the light of today's urgency. As the books under review here suggest, crises also represent opportunities for scholars. Arguments that failed to gain traction in the past may now deserve new attention as they help us understand the roots of crisis or how to recover from it. New audiences may be receptive to established arguments, now that other policies have caused us grief and are failing to promote recovery. The public and decision makers could be open to listening to these arguments and their implications, now that crisis has revealed deep vulnerabilities.The three books that form the basis of this review essay represent trenchant critiques of neoliberal economic theory and policies, including such foundational policy assumptions as globalization, deregulation, and reliance on sophisticated financial tools. Their authors, three prominent economists, draw our attention to problems of market failure, such as rampant rent-seeking behavior and externalities. By focusing on entrenched dilemmas that include widening inequality and the compatibility of democracy and globalization, they remind us of the ways in which markets are embedded in social institutions, and how such institutions both respond to markets and shape market outcomes. All bring with them a deep commitment to understanding the functioning of society and how to maintain the benefits of global capitalism while reining in its most destructive implications.