Karl Polanyi's The Great Transformation (1944)
'Jeremy Bentham's Panopticon plan with the help of which gaols could be designed so as to be cheaply and effectively supervised had been in existence for a couple of years, and now he decided to apply it to his convict-run factory; the place of the convicts was now to be taken by the poor.' (106)
'His [Bentham's] Industry-Houses were a nightmare of minute utilitarian administration enforced by all the chicanery of scientific management.' (117)
When recently reading The Great Transformation, shamefully late, I noticed the passages on the Panopticon as an essential utopia of the self-regulated market, in which policing becomes the enforcement and invention of the 'economic'. It surprised me that no readers of Foucault, in my memory, had ever mentioned this connection. Recently writing a presentation for a Taster Day on detective fiction I re-read Franco Moretti's 'Clues' (in Signs Taken for Wonders), and noted that he placed Polanyi before Foucault in a footnote to his comment that the detective story 'reiterates Bentham's Panopticon ideal: the model prison that signals the metamorphosis of liberalism into total scrutability.' (143)
If you wanted a full chain you could read back to Peter Linebaugh's The London Hanged, in which he points out how the Panopticon was 'trialed' in Samuel Bentham's (Jeremy's brother) regulation of shipyards to avoid workers walking off with 'liberated' surpluses. Hence the Panopticon returns to the history of real subsumption, and out of the history of 'surveillance' as an autonomous dynamic.