Waves of Populism: A Recent Manifestation of Polanyi’s “Double Movement”?

Abstract:

Since the Global Financial Crisis (GFC) of 2008, there has been a new wave of populism in the United States and in Europe. The hypothesis of this article is that this GFC has created the conditions for the resurgence of populism. According to Polanyi’s work of 1944, The Great Transformation, the market is “utopian” and must be imposed by the state. Further, there is a disciplinary dimension, which separates the individual worker from the community, for the purposes of allowing the “prod of hunger” to be effective. This disciplinary dimension of the market, which is based on Polanyi’s analysis of the nineteenth and early twentieth centuries, can be extended. Several phenomena in the late twentieth and early twenty-first centuries have intensified the tensions inherent in the market: fragmented production by means of finely divided global supply chains, increasing inequality due to the market structure; automation, declining labor share; increasing indebtedness; financialization; and erosion of protective labor market institutions, such as welfare and unionization. Populist movements are part of the backlash or “double movement” against these tensions inherent in the market.

Polanyi’s analysis may contribute to a greater understanding of what may be a global inflection point at present.

Keywords:

• populism
• property
• money
• reification
• fictional commodities
• double movement

JEL Classification Codes:

• BB52
• P16
• P48

Additional information

Notes on contributors

Ann E. Davis

Ann E. Davis is an Associate Professor of Economics at Marist College in Poughkeepsie, New York. The author gratefully acknowledges helpful comments from participants at the WINIR 2019 conference in Lund, Sweden, including Bas van Bavel and Thorvald Gran on an earlier version of this article. All remaining errors and omissions are the author’s own.