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 Polanyi’s interest in achieving full employment has been replaced by Federal Reserve policies that keep risk-taking banks solvent.

Polanyi’s theory of spontaneous order is set in historical context, analyzed, and compared to Friedrich Hayek’s version.