One simple recognition, from which all attempts at clarification of the place of the economy in society must start, is the fact that the term economi… - Karl Polanyi

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One simple recognition, from which all attempts at clarification of the place of the economy in society must start, is the fact that the term economic, as commonly used to describe a type of human activity, is a compound of two meanings. These have separate roots, independent of one another. It is not difficult to identify them, even though a number of broadly synonymous words are available for each. The first meaning, the formal, springs from the logical character of the means-ends relationship, as in economizing or economical; from this meaning springs the scarcity definition of economic. The second, the substantive meaning, points to the elemental fact that human beings, like all other living thins, cannot exist for any length of time without a physical environment that sustains them; this is the origin of the substantive definition of economic. The two meanings, the formal and the substantive, have nothing in common.
The current concept of economic is, then, a compound of two meanings. While hardly anyone would seriously deny this fact, its implications for the social sciences (always excepting economics) are rarely touched upon. Whenever sociology, anthropology, or history deals with matters pertaining to human livelihood, the term economic is taken for granted. It is employed loosely, relying for a frame of reference now on its scarcity connotation, now on its substantive connotation, thus oscillating between two unrelated poles of meaning.