Beyond the “Always-Embedded Economy†: Rethinking the Foundations of Socioeconomics

Socioeconomics designates the interdisciplinary attempt to provide an alternative to mainstream economics, involving economic sociology, political economy, and heterodox economics. While Polanyi’s work largely informs this endeavor, his theory is also ambiguous, and scholars have interpreted it in opposing ways. The notion of the always-embedded economy is by now widely accepted, but this perspective potentially undermines the critique of (neoliberal) capitalism. In this article, I develop a coherent framework for socioeconomics built on three pillars. The first pillar affirms that the economy is always embedded in cultural, sociopolitical, and ecological frameworks. The second pillar asserts that the power over socioeconomic issues can be more or less privatized. The third pillar involves a commitment to a “real†democracy, whereby the economy is subordinated to social-ecological needs. This political ideal was not only Polanyi’s own vision: it is also central for contemporary societies—and socioeconomics itself can contribute to its realization.