In The Great Transformation Karl Polanyi (1886–1964) argued that ‘for a century the dynamics of modern society was governed by a double movement: the market expanded continuously but this movement was met by a countermovement checking the expansion in definite directions. Vital though such a countermovement was for the protection of society, in the last analysis it was incomparable with the self-regulation of the market, and thus with the market system itself.’ In the eyes of Polanyi, the forces promoting laissez-faire have been met by a countermovement attempting to protect society and the common weal. As Fred Block puts it: ‘What we think of as market societies or “capitalism” is the product of both of these movements; it is an uneasy and fluid hybrid that reflects the shifting balance of power between these contending forces.’

The last financial crisis – starting in 2008 – seems to have created less and weaker ‘countermovements’ than did the crisis starting in 1929. This chapter looks into these differences, and argues that the main explanation may be somewhat vaguely summarized by referring to a completely different Zeitgeist in economic theory and social attitudes then and now. In order to be more concrete and to provide an illustration of the difference in Zeitgeist, we contrast the personal experience, attitudes and values held by two men in power at the peak of the crises: Marriner Eccles – head of the Federal Reserve from 1934 to 1948 – and Mario Draghi – who will be at the helm of the European Central Bank from 1 November 2011 until 31 October 2019.

The writings of Marriner Eccles show us a man whose point of reference was the poverty and lack of freedom his father suffered in the slums of Glasgow. Eccles’ goal was – at the depth of the crisis of the 1930s – to achieve economic security for his fellow Americans with a minimum loss of freedom.