However, this is nothing new. Polanyi’s book was written in the 1940s and was one of the theoretical underpinnings of the policies of the 1950s and 60s – Keynesian, markets under government control. And let’s face it, the 50s and 60s were a great time to be alive, massive economic growth and radical social transformation. Unfortunately, those policies brought us to the cul-de-sac of the 1970s. The way out of the cul-de-sac was the butchery of the market reforms of the 80s and 90s.
So what now? What next? If the policy pendulum swings back to more restraint on markets then yes, we can expect less social damage but we’ll be storing up economic damage to erupt again in a decade or two. Is economic policy just a pendulum swinging between those two options?
Don’t look at me, I dunno. We need a new kind of thinking about economics, about growth, about national policies and about international systems. We haven’t got it yet. But I’m quite liking what Dani Rodrik has to say about the debate (articles, blog).
from B3ta, of course