Gulick’s description and analysis of my The Failure of Laissez Faire Capitalism is largely on target, but in this response I point out several of his misperceptions and elaborate on several points made in my book. For instance, I note that Polanyi’s monetary prescription for stimulating the economy is no longer relevant when so many US jobs have moved offshore. Polanyi’s interest in achieving full employment has been replaced by Federal Reserve policies that keep risk-taking banks solvent.

This article is a response to the Scott and Moleski biography of Michael Polanyi by one of Polanyi’s last students.

This article is a response to the Scott and Moleski biography of Michael Polanyi by one of Polanyi’s last students.

In 1945, Michael Polanyi achieved, in Full Employment and Free Trade, the integration of Keynesian and monetarist economics that the economics profession did not ahieve until the 1970s. In yet another field, Polanyi saw the heart of important matters long before anyone else.