According to Polanyi, a key event of 1834 which allowed the formation of free markets to take place in Great Britain (the worlds foremost economy at the time) was the abolition of outdoor relief which followed the seizure of political power by the middle classes in 1832.Full abolition of outdoor relief was only completed by the early 1840s, but it was largely accomplished with the 1834 Act. With the unemployed poor unable to get any form of financial help except by entering workhousesThough Polyani notes that a few were still able to receive charity from Lords, Ladies or clergy who offered it in defiance of the Law. and with workhouses made much more oppressive than they had been before, the unemployed would tend to go to any lengths to obtain work, which established a free market in labour. Polanyi concedes that during the 19th century the free market helped deliver unprecedented material progress. He also contends it caused enormous hardship to wide sections of the population as seemingly paradoxically a rapid general increase in prosperity was accompanied by a rapid increase in the number of paupers. To some extent, this phenomenon had been under way in both Europe and Great Britain from the dawn of the Agricultural Revolution, accelerating with the Industrial Revolution in mid-18th century, but it became more acute after 1834..
