I consider History to be a very adequate instrument in presenting us different concepts applied in practice whether you pick specialized or generalized perspectives.
Thereby, it has the ability to indicate and narrow down the essence of a particular matter, but in the same time it offers a very abundant overview by connecting all the individual elements into the bigger picture.
In Today’s article I would have the pleasure to present how History is capable of compiling and illustrating our Economic Stages.
First off, the Economy is very large and complex, and especially if you look at it as at an abstract appearance as well, then you find out there are a myriad of major and minor concepts and phenomenons which could serve as Economic Stages; however, skimming through and trying to form a general layer of this subject, the Stages of our Economy might be displayed in accordance with Historical epochs as follows:
500,000–10,000 BC. The primeval socio-economic element was the band. Conversation between bands took place for the purposes of trading ideas, stories, foods, animal skins, mates, tools and other commodities. Economic resources were limited by typical ecosystem conditions: density and substitutions rates of edible flora and fauna, opposing factors from other consumers (organisms) and the climate. During the Upper Paleolithic, humans both spread across and adapted to a bigger variety of environments, and also perfected their technologies and behaviors to enhance productivity in existing circumstances taking the population of the planet to between 1 and 15 million.
This Stage started with the end of the last glacial interval over 10,000 years ago including the gradual domestication of plants and animals and the shaping of settled communities at diverse times and places.
Inside each tribe the activity of representatives was differentiated to particular activities and the specifics of some of these activities were restricted by the resources naturally existing and available from within each tribe’s domain, forming specializations of skill. By the “… division of labor and development of new crafts, tribal units became naturally secluded through time from the overall evolution in skill and technique present in their neighboring ecosystem. To use artifacts created by tribes specializing in areas of production not existing to other tribes, exchange and trade became indispensable.
== Antiquity: Bronze and Iron ages
The city states of Sumer designed a trade and market based Economy originated on the commodity money of the shekel that was a certain weight measure of barley, whilst the Babylonians and their city state neighbors later designed the earliest system of prices using a metric of different commodities that was fixated in a legal code. The early law codes from Sumer could be deemed the first (written) financial law, and had many attributes which are still in use in the present price system Today; such as codified quantities of money for business affair (interest rates), fines for ‘wrongdoing’, inheritance rules, laws regarding how private property is to be taxed or divided etc…
== Antiquity: Classical Era
India and China, the 2 most major economies respectively, accounted for more than half the proportion of the world economy. Despite the high GDP, these nations being large population centers, didn’t possess considerably higher GDP per capita. In this Stage notable things are happening such as: expedition and long distance commerce, external trade with the Roman Empire, the implementation of coinage and the developments in economic awareness and thought.
== Middle Ages
The world economy slowly expanded with the increment of population and trade. The silk road was utilized for trading between China, Central Asia and Europe. Throughout the early times of the Middle Ages, Europe was an economic backwater, nonetheless, by the later Medieval times rich trading cities in Italy arose, forming the first modern accounting and financing systems.
== Early Modern Era
It was a time of mercantilism, nationalism, and international trading relations. The declining of Feudalism saw new national economic frameworks start to be consolidated. After the navigation of Christopher Columbus, there were were opened new opportunities for trade with the New World and Asia, newly-powerful monarchies desired a more powerful military state to enhance their status. Mercantilism was a political movement and an economic theory that promoted the use of the state’s military power to make sure that local markets and supply sources were under protection.
== The Industrial Revolution
Economic history as it refers to economic growth in the modern sense first happened during the Industrial Revolution in Europe, started in Great Britain, due to high quantities of energy conversion occurring.
== The 20th century
Economic growth disseminated to all regions of the world during the 20th century, when world GDP per capita increased fivefold. The highest growth happened in the 1960s throughout post-war reconstruction. Some increasing in the volume of international trading occurred because of the reclassification of within-country trade to international trade – due to the increasing number of countries and resulting modifications in national boundaries.
== The 21st century & the dominance of the BlockChain
After the crisis of 2008, at the end of the same year the Bitcoin’s white paper was published and in the beginning of 2009 it debuted on the market, marking in this way the beginning of the BlockChain’s infiltration in our society. Was this a coincidence? It’s up for debate, but I don’t think so. It already brought radical changes to our Economy, one of the most notable being the Decentralization. And I think this is just the beginning of how BlockChain can shape our world.
So, looking back in history to our Economic Stages, we can pretty much deduct how our ancestors evolved throughout the ages in order to satisfy their material needs as the time went by. The product that we got Today as a result is at least an interesting one and will certainly continue to be entertaining and fascinating to follow and see what the future holds for all of us.