Karl Polanyi and the Rise of Fascism

Abstract This article reconstructs Karl Polanyi’s account of fascism’s rise in his 1935 article, “The Essence of Fascism.” Following the elevation of Hitler to power in 1933, Polanyi embarked on a reassessment of Nietzsche, Othmar Spann, Spengler, Evola, and other figures of the interwar conservative revolution. He argues that the fascist quest for national unity emerges when 19th century liberalism fails to address the growing atomization and economic dislocation of modern society. On the one hand, fascism valorizes the mythopoetic, prehistorical vitalism that liberal rationalism and social democracy sought to purge from public life. On the other, fascism aspires to a higher form of elitist, technological mastery than egalitarian states can achieve. These tensions, he predicts, will result in the radicalization and collapse of fascist regimes in a European war. This article illuminates Polanyi’s deep understanding of political modernity and the contemporary implications of his philosophical critique of the far right.