Disembedded Economy

692 Words3 Pages
In the first week of class, as aforementioned, the primary focus of the lectures was the main differences between capitalist and pre-capitalist markets, these being the disembedded and embedded nature of these markets, the duties and rights of the individual, and motives for production and exchange in these markets. To appropriately discuss these terms and methods some background information must be shared. Starting with capitalism, it can be defined as an autonomous or self-regulating market. These terms simply mean that the market in a capitalist system of economy is self-propellant and is independent of any outside stimuli, though these external forces may affect it. A non-capitalistic economy would be controlled by outside forces such…show more content…
The market that is discusses when a capitalist economy is in question is a disembedded economy. A disembedded economy is one that is independent and self-regulating in that it does not need an outside stimulus and has no government intervention controlling it. The economy that is discussed when pre-capitalistic economies are concerned is an embedded economy. The difference between this and an embedded economy is the government controlling the economy disallowing natural market change to occur. In both of these systems, individuals have certain duties and rights that they must follow in order for the society and market system to continue. In an embedded economy individuals have much fewer rights where economy is concerned. With the government and its control over the market individuals do not have the ability to introduce their own business. The government controls all business in the market and the business themselves so if an individual want to introduce a new business, they must go through the government and the business no longer is an individual and unique enterprise and is instead another piece of the economic machine. In a disembedded economy, individuals have the freedom to introduce their own businesses into the market without the government or some other outside entity from entering and taking control of the business to do with as they

More about Disembedded Economy

Open Document