A Market Society and its Evolution
A market society is a state in which forces within a market combine key systems and power to direct economic functions and guide relations among participants and is influenced by both material and ideological conditions. It is a situation which usurps the role of the government and private investors. This area has attracted the attention of many economists including Polanyi (1957), Heilibroner (2012), Rinehart (1996) and Bendix (1962). They have all extensively researched and wrote deeply in the area pointing out and emphasizing on the role of material and ideological conditions.
The Evolution of the Economic Market
The economic market has clearly evolved into the self-regulating entity it is today according to Polanyi (1957, p. 43-68). The market was previously affected by division of labour based on sex, geography and individual’s specialization. It was also dependent on social relationships as man strived for his social position as well as maintaining social ties. Production and distribution were maintained through three main principles; reciprocity, redistribution and house holding. Basically, reciprocity related to the organization of the society in terms of family and kinship, redistribution governed those within a territory while house holding governed personal use production. These principles were helped by with patterns like symmetry and centricity. Symmetry, having two identical productions, was of great help to reciprocity while centricity facilitated collection and reallocation of goods and services through a common leader thereby being of assistance to the principle of redistribution. Clearly the market would therefore be determined and influenced by the society’s organization, individuals in the society as well as the leaders.
The Emergence of a Market Economy
Polanyi (1957, p. 68) points out that the economic system evolved into a market economy. This, he defines as an economic system controlled, regulated and directed by markets alone. This is enhanced by materialistic conditions such as human urge and drive for maximum profits. The supply of goods and services equals their demand at an equal price. Due to self-regulation, production is entirely for commercial purposes hence emphasizing on material conditions in terms of both goods and services including fictitious elements such as land, money and labour. They are not commodities which can be readily bought and sold but a market economy allows this to happen through self-regulation. The state enjoys neither influence nor interference in the market not even through its policies for example by setting the prices for commodities and services. In this regard, there is a clear line between the political and economic sectors making the two distinct and independent sectors (Polanyi, 1957, p. 71).
A Self-Regulating Economy and Economic Demand
In coming into terms with the prevalent economic problem in America, Heilibroner, (2012, p. 3) reinstates the role played by division of labour as one nation depended on the other for what she could not do and produce. However, due to dependence of a large population on a few individuals, the society finds itself in a scarcity crisis. To solve this crisis, Heilibroner calls for a free self-regulating market alongside keeping the traditional approaches in production and distribution as well as adhering to economic demand (2012, p. 8-15). Though he presents the three together, Heilibroner emphasizes on creating entirely an entirely self-regulated economy with no reference to traditions and free from interference in assigning roles and giving duties. Governments are advised to stay away from the market and should not even think of exercising any regulations. A society is better placed to resolve its own problems related to economics in the daily operations.
The Role of a Market Society in Economic Development
In understanding alienation and the development of industrial capitalism in Canada, Rinehart (1996) also appreciated the role and importance of a market society in economic development. Just like Polanyi and Heilibroner, he also appreciated the role of division and specialization of labour based on sex as well as area of specialty (1996, p. 26). The system would at times be affected with male figures having to at times to look for employment somewhere else to supplement their income. Under such a circumstance, it is not prudent to put individual interest above those of the general community (Rinehart, 1996, p. 28). This was key to building a market society which thrived at the heart of general community gain.
Ideological Conditions and the Market Society
Ideological conditions have also been earmarked to influence a market society. Various ideas and ideals have determined and shaped the market society. The protestant ethic and the spirit of capitalism are such ideological conditions as suggested by Max Weber (Bendix, 1962, p. 49). According to Weber, individual progress and ethic economic conduct are what shapes an entrepreneur (Bendix, 1962, p. 50). For one to taste the fruits of success and earn respect he had to put the two into account. These are what shaped a capitalist who is driven by hard work. Therefore, the spirit of capitalism plays a big role in shaping a market society.
The Influence of Protestantism
Secondly, Weber brought about the concept of traditionalism. This occurs when employers opt for less work to more pay, they seek comfort than exertion during working and are not willing to adjust to and adapt new working methods and procedures (Bendix, 1962, p. 52). Entrepreneurs who have become comfortable and satisfied with their business and have direct personal and direct relationships with workers, competitors and customers create the traditionalism spirit. Traditionalism, just like capitalism, calls for a moral obligation and emphasizes on hard work thereby shaping a market society.
The Effects of Capitalism and Protestantism
In pursuit of success, various activities became a norm under capitalism. These included trading, financing wars and revolutions as well as colonial exploitation in the early days. Capitalism has evolved to complex business activities like investments, corporations and stock exchange today (Bendix, 1962, p. 53). Capitalism therefore resulted into exploitation of most of the society’s members by a few rich entrepreneurial individuals. This called for the society to realign itself into a collective group unit.
Weber believed that the spirit of capitalism was routed to religious ideas. This was backed up by a number of observations which all emphasized on a strong close relationship between Protestantism and the development of the commercial spirit (Bendix, 1962, p. 56). Protestantism was seen to play a great role in commercial activities as compared to other religious affiliations like Catholicism. Various areas and individuals embraced Protestantism where it promoted economic gain. However, Weber views this as a paradox as strict religion and extreme economic activities were incompatible. He further claims that the rising commercial class highly identified with Protestantism as compared to the other classes due to the strict regulations placed on private and public life (Bendix, 1962, p. 57).
According to Weber, certain aspects of Protestantism favoured some activities which ensured economic gain. Activities aimed at material and worldly gains were unintentionally and positively given spiritual meaning and support during the reformation period. For instance, the Calvinist doctrine of predestination stated that each individual had his fate already predetermined by God and nothing could be done to overturn this (Bendix, 1962, p. 58). Religious teachings like ‘he who does not work should not eat’ played a key role in promoting hard work in the society and discouraged idleness and laziness (Bendix, 1962, p. 62). Apparently, such doctrines and teachings would promote capitalism as each individual would strive for their own needs and leave other members of the society to suffer as well as the rich exploiting the poor in the name of predetermination.
The religious doctrine and church teachings emphasized on a Puritanism in trade. The strict church teachings gave a sense of confidence in believers as transacted in businesses. Further the approach detached business from the family and community (Bendix, 1962, p. 70). Religion played a key role in urban life where most transactions were conducted. It was a basic requirement for one to acquire full citizenship of the city and provided standards of ethics for business transactions. Church based governments were tied to oaths to ensure equality and ensured a place for the foreigners in the city (Bendix, 1962, p. 77). The protestant ethic therefore played a key role in the emergence of a market society with the detaching of businesses from family and community affairs. This meant that the business markets would regulate themselves but ensured that there was moral ethics for truthfulness and trust.
The Transformation of the Market Society
The economic shift to a market society is a fundamental transformation which has been determined and shaped by material and ideological conditions. It has become of great importance to let markets regulate and govern themselves to avoid selfish interests and creation of monopolies which may create exploitation of consumers. Governments should not also seek to influence the market through their policies hence giving markets the freedom they deserve. The urge to make more profits and the customer’s demand are materialistic factors that combine to determine the market. These combine with ideological factors like religion, Protestantism, to instil a sense of truthfulness in the participants thereby creating a harmonious market society.
References
Bendix, R. (1962). Aspects of Economic Rationality in the West. New York: Anchor Books.
Heilbroner, R. (2012). The Economic Problem: The Making of Economic Society. Upper Saddle River, N.J: Pearson.
Polanyi, K. (1957). The Self-regulating Market and the Fictitious Commodities: Labor, land and Money. Boston: Beacon Press.
Rinehart, J. (1996). Alienation and the Development of Industrial Capitalism in Canada: Solution to Alienated Labor. The Tyranny of Work. Toronto: Harcourt Brace.
