I’ve been reading Capitalism and Its Critics by John Cassidy. According to Cassidy, Karl Polanyi criticized capitalism as being essentially undemocratic. After watching the rise of fascism in Europe, in 1935 Polyani wrote:” The mutual incompatibility of Democracy and Capitalism is almost generally accepted today as the background of the social crisis of our time.” Why? Because “only an authoritative State can deal with the contradictions inherent in Capitalism.” (Quoted by Cassidy, p. 283, originally from Polyani’s “The Essence of Fascism.”)
There was a religious side to this. Polyani was a Christian Socialist. Today, Christian Socialism is a concept that would probably cause the heads of many U.S. Christians to explode. (It would also probably cause the heads of Bernie Sanders and the Democratic Socialists of America to explode, but I digress.) Yet Christian Socialism used to be a widely-known option that boasted adherents ranging from Dorothy Day (a Catholic) to Adin Ballou (a Universalist turned Unitarian).
From Polyani’s viewpoint as a Christian Socialist, the rise of fascism not only threatened socialism, it also threatened Christianity. In that same 1935 essay, Polyani wrote: “Victorious Fascism is not only the downfall of the Socialist Movement; it is the end of Christianity in all but its most debased forms.” As a theological point, I think this is true — when people allow a central political authority to make moral choices for them, you’re going to see an attenuation of their individual moral capacity, which will similarly attenuate their religious capabilities.