Karl Polanyi's Argumentative Analysis

The 21st-century epoch is inexplicably linked with great innovation and cutting edge development in technology. Technological advancements are often revered as invaluable contributions to society, and ultimately a symbol of mankind’s progress. However, with progress also comes problems. The social impacts of high-tech sector developments on communities— especially the lower socioeconomic class—is not always positive.
Recently, the San Francisco Chronicle published an article discussing the often long forgotten effects of technological innovation in the automobile industry. Major job losses are predicted as autonomous vehicles begin to take to the road. While still in its elementary stages, the eventual transition to self-driving cars
would have social impacts on a large majority of the American population. According to authors David R. Baker and Carolyn Said, 12% of the population is employed by the transportation industry, including but not limited to “driving trucks, delivery vans, taxis and ride-hailing cars. Developments in the automobiles industry in the form of autonomous vehicles would threaten the jobs of a large majority of the population. Job displacement would also affect ancillary jobs within the delivery and driving sector, including “the people in insurance, repairs, restaurants, hotels…” Overall, innovations in the technology sector and the effect on their livelihoods of vulnerable populations.
Integrating artificial intelligence into current modes of transportation exemplifies the economic concept of a “double movement” that political economist Karl Polanyi discusses in his influential text, The Great Transformation.
The job displacement associated with autonomous vehicle development is a prime example of the commodity of “artificial intelligence” extending into the new market of transportation. This “extension of market”, although progressive and beneficial, is still coupled with negative externalities of massive job displacement. Additionally, an overextension of said market leans dangerously close to an unstable, or as Polanyi defines it, a “disembedded” economy. Remaining true to Polanyi’s theory, a “protective countermovement” has organically arisen to resist and ultimately prevent the disastrous disembedding of our economy. While not necessarily a social movement in the form of protest, responses from society have been observed. Most notably, the article quotes Andy Stern, former president of the Service Employees International Union, who claims that replacing human labor with machines would be “incredibly irresponsible”. Many other organizational and union leaders fear the impending and almost inevitable transition to a fully autonomous road. America’s 3.5 million truck drivers are among the most vulnerable population, and many have taken preemptive actions and expanding their job options. With corporate interest placed in the valorization of the
transportation industry, I am interested in observing what other protective counter movements that may unfold in the future. I speculate that political valence and some form of social protection will definitely emerge. Perhaps a reactionary countermovement mandating fees for companies utilizing autonomous vehicles will emerge.
While the introduction of autonomous vehicles aligns with most of Polanyi’s general theoretical position regarding, this consequence maintains some contradictions as well. Self- driving vehicles contradicts Polanyi’s argument delineating labor as a fictitious commodity. Polanyi argues that labor is a fictitious commodity because it cannot be reproduced as a factor of production. The spawning of laborers or workers is not governed by market contingencies. However, with autonomous vehicles, the entire concept of labor would be eclipsed. In essence, this process would legitimize labor as a commodity in Polanyi’s eyes. Although Polanyi argues that labor was never intended to become a commodity in the economic market, the shift of labor from human to artificial in this sector rejects a core notion that Polanyi discussed.