New Economic Sociology - Philosophical Concept | Alexandria
Economic Sociology, often referred to as New Economic Sociology, is a field that investigates the social causes and consequences of economic phenomena. It’s a perspective that challenges purely rational, mathematical models of economics by embedding economic behavior within its social, cultural, and political context. This approach subtly questions the universality of economic laws, suggesting that what appears as objective market behavior is, in fact, deeply intertwined with human relationships and institutions.
The seeds of Economic Sociology can be traced back to the late 19th and early 20th centuries, with seminal contributions from figures like Karl Marx, Emile Durkheim, and Max Weber. Weber's "The Protestant Ethic and the Spirit of Capitalism" (1905), argued that religious beliefs influenced the development of capitalism. These early works demonstrated that economic systems weren't simply about supply and demand; they were intrinsically linked to culture, power, and history.
The mid-20th century saw a relative decline in Economic Sociology's prominence as formalistic economics rose to dominance. However, a resurgence began in the 1970s and 1980s, spearheaded by scholars such as Mark Granovetter, Harrison White, and Viviana Zelizer. Granovetter’s concept of “embeddedness,” arguing that economic action is invariably embedded in networks of social relations, became a cornerstone of the new approach. Zelizer’s work has explored how supposedly impersonal economic transactions are often laden with personal meaning and cultural values. This new wave offered a powerful critique of neoclassical economics, demonstrating how social networks, institutions, and cultural norms shape everything from hiring practices to consumer behavior. Today, Economic Sociology extends its reach into areas like finance, technology, and global markets, offering unique perspectives.
Economic Sociology’s influence persists in academia and beyond, prompting discussions about inequality, globalization, and the ethical implications of market capitalism. In an era defined by rapid technological change and growing social divisions, the questions posed by Economic Sociology – How do our social connections shape our economic realities? Are markets truly efficient or are they reflections of deeply seated power structures? – remain as pertinent and provocative as ever.