Individualism and Economic Order Essay

September 21, 2021 by Essay Writer

There is no use denying the fact that the development of any society is determined by a great number of various facts that create the unique environment needed for the appearance of a certain issue. Thus, money and economy have always been integral parts of human society which determined its existence and ways to evolve. One realizes the fact that the modern age could be characterized by the development of market relations and this kind of economy. That is why, a great number of various specialists try to investigate the given sphere in order to determine some important peculiarities and outline the main perspectives awaiting modern society. Karl Polanyi and Friedrich Hayek also cogitated about the sphere of economy and the role people and society played in its evolution.

Nevertheless, starting the analysis of the main ideas of these authors, it is vital to outline the background and the main processes in society that triggered the growth of the interest towards these issues. It should be said that both Polanyi and Hayek lived and worked at the period which could be characterized as by the prominent tempos of the evolution of the market economy and relations. Moreover, being active actors as any member of society, they could not but try to analyze the main conditions which helped society to choose this very way of development (Vancura 2011). That is why, they introduced their own points of view on the given issue, in which they showed their own vision and understanding of the processes peculiar to society.

Thus, Polanyi created the work The Great transformation which helped him to outline his own ideas about the rise of the market economy and the main conditions of its development. Using Englands model as the background for his investigation, he tends to prove the hypothesis that the modern market economy and state model should be analyzed in terms of the new Market Society (Polanyi 2001). He does not agree that the development of modern society and the evolution of the market economy goes along and have the same stages of their growth.

Thus, he is sure that a certain combination of conditions should appear for a great transformation to happen. Polanyi outlines several models that existed before market relations, however, he comes to the conclusion that the modern system is the most efficient and unique as it leads to the fast growth of society and the market (Polanyi 2001).

Friedrich Hayek is also interested in the investigation of the sphere of economy and market relations. His investigations are traditionally taken as the basis of the cogitation about the role of an individual in the economy and its impact on its growth. Thus, Hayek states that individuals cooperate under certain conditions that appear due to the change of values and prices. (Hayek 1948). Thus, in the book Individualism and Economic Order Hayek tries to present his own point of view on the given sphere and determine the role of a person in it. At the very beginning of the work the author cogitates about the nature of individualism, trying to determine whether it is true or false (Hayek 1948). Thus, he comes to the conclusion that the whole sphere depends on the actions of an individual which could trigger some processes.

It should be said that both Hayek and Polanyi revolve around the same issue. Accepting the great importance of the market economy, the scientists also underline the fact that the modern age is characterized by the unique set of conditions that determined the blistering development of the market and economy. Moreover, they both criticize some other ways to manage the economy, underlining a great number o benefits that result from the adherence to the main principles of the market economy. The authors also accept the idea that the given stage of the development of society is mainly determined by the way in which the economy developed.

However, at the same time one realizes the fact that there are also some differences in the points of view introduced by these two outstanding scientists of the 20th century. Thus, Polanyi insists on the idea that Market Society is the human invention that appeared due to the combination of reasons and the progress achieved by humanity in the given sector (Horwitz 2012). Hayek also accepts the great role of society and people in the given progress, however, he tends to give more attention to an individual and structure of human society which led to the development of the economy (Mayhew n.d.).

With this in mind, it is possible to make a certain conclusion. One realizes the fact that market relations and the economy are very important for the modern world. People act in accordance with the main principles of the given model and try to contribute to its development. Thus, Polanyi and Hayek suggest their own vision of these important processes, trying to analyze them and make people understand what peculiarities the modern model obtains. They have some differences in their approaches, however, their investigations are very important for a better understanding of the whole sector.

Reference List

Hayek, F 1948, Individualism and Economic Order. Web.

Horwitz, S 2012, On Individualism and Economic Order. Web.

Mayhew, A n.d., The Great Transformation: The Political and Economic Origins of Our Time. Web.

Polanyi, K 2001, The Great Transformation The Political and Economic Origins of Our Time. Web.

Vancura, M 2011, Polanyi’s Great Transformation and the Concept of the Embedded Economy. Web.

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