The Great Transformation (book)
"The Great Transformation" is a book that tells the story of how our modern economic system came to be. A long time ago, people did not buy or sell things in the way we do today. Instead, they lived in small communities where they grew or made everything they needed. This is called a "traditional economy."
But then, something called the Industrial Revolution happened. People started using machines to make lots of things really quickly. Suddenly, people had more goods than they needed, but they couldn't sell them all in their small communities. So they started to trade with people further away, and new ways of making and selling things emerged.
This is where the book's author, Karl Polanyi, says we went through "the great transformation." Instead of producing just for their own use, people began to produce items for the purpose of selling them on a market. This is called a "market economy" or "capitalism".
The book explains that capitalism was not an easy transition. People had to leave behind their traditional way of life and learn new skills. They had to figure out how to make things efficiently and cheaply to compete in the market. But this also created new problems, such as unemployment and poverty for those who couldn't participate in this new economy.
Polanyi also describes the birth of the welfare state, where governments began to provide social programs to help those who were struggling in the new economy. This was done to make sure that everyone in society was taken care of, not just those who were wealthy enough to succeed in the market.
So, in short, "The Great Transformation" is a book that tells the story of how we went from a traditional economy to a market economy, and the challenges and changes that came with it.
But then, something called the Industrial Revolution happened. People started using machines to make lots of things really quickly. Suddenly, people had more goods than they needed, but they couldn't sell them all in their small communities. So they started to trade with people further away, and new ways of making and selling things emerged.
This is where the book's author, Karl Polanyi, says we went through "the great transformation." Instead of producing just for their own use, people began to produce items for the purpose of selling them on a market. This is called a "market economy" or "capitalism".
The book explains that capitalism was not an easy transition. People had to leave behind their traditional way of life and learn new skills. They had to figure out how to make things efficiently and cheaply to compete in the market. But this also created new problems, such as unemployment and poverty for those who couldn't participate in this new economy.
Polanyi also describes the birth of the welfare state, where governments began to provide social programs to help those who were struggling in the new economy. This was done to make sure that everyone in society was taken care of, not just those who were wealthy enough to succeed in the market.
So, in short, "The Great Transformation" is a book that tells the story of how we went from a traditional economy to a market economy, and the challenges and changes that came with it.