Question
Classical Political Economists (CPEs) and Karl Polanyi have different views of the market mechanism. CPEs (Smith, Ricardo, Say), who wrote in the 18th and 19th
Classical Political Economists (CPEs) and Karl Polanyi have different views of the market mechanism. CPEs (Smith, Ricardo, Say), who wrote in the 18th and 19th century, generally envisioned a harmonious market mechanism that nevertheless had potential problems. Polanyi, who wrote in the 20th century, described more violent and unstable market forces that drove the Great Transformation in the economy. Explain why and how these two visions of the market economy differed and focus especially on their understanding of labor markets and their views on employment/full employment/unemployment and inequality.
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