The History of the Market System

This article is an approved excerpt from Ryan’s book, Zero to One Million.

One of the most important breakthroughs needed to establish a market system occurred between 12,000 and 10,000 BC. With the advent of specialization and the beginning of the Neolithic era. Instead of each tribe collecting hunting and food, different people from each tribe become experts in specific tasks such as hunting, gathering, cooking, tool making, shelter making, and clothing making. As farming improved, the first towns and cities were seen. Reliable food supply allowed people to build permanent homes and settle in the area. As the settlements grew, new forms of society developed, including religious centers, courts, and markets. The emergence of cities has brought about greater specialization, especially in the manufacture of tools, pottery, carpentry, wool, tools and masonry. Experts have created articles of better quality, faster than each family can create on their own. This will improve your standard of living. Visit:- Dragon City Guide
The first signs of the functioning of the market system can be seen in the advent of bartering in tribes dating back to 6000 BC. C. Mesopotamia. If Tom has 20 cows and 80 chickens and Tom and Igor agree that one cow is worth four chickens, a trade-off is possible. However, the problem with the exchange system was that both sides wanted what the other needed to find an exchange. This consensus of wishes often did not occur. Growing business and trade demands have led to the development of monetary systems. It is believed that silver rings and sticks were used as money in ancient Iraq before 2000 BC. C. The first form of money used to be cash or commodities. Examples range from shells to tobacco leaves to large round rocks and beads.
Although the monetary system is still underdeveloped (credits and banknotes didn’t exist yet), its invention was very important to today’s world over 4000 years ago. By preserving value and enabling exchange using accepted media, our world, our lives, our potential, and our future have been greatly improved.
In 1100, the system that was widespread in the western world was the feudal system. It was the world of kings and lords, vassals and servants, kingdoms and mansions. Long-distance trade has expanded and a new world of foreign spices, oriental treasures and fine silk has been discovered. 350 years later, after the end of the plague and the Hundred Years War, Europe emerged and trade expanded to a new level, laying the foundation for the beginning of the competitive market economy we know today. With the increase in population, which began around 1470, cities, markets and turnovers have increased. The idea that the banking business, originally started by the ancient Mesopotamians, has grown to new heights and complexity, the guild system has expanded, and the business is an impersonal entity with an identity different from its owner. Has taken root. New world silver imports have helped expand trade, and accountants have created standardized principles for tracking company accounting based on Luca Pachoris’ progress. Early entrepreneurs, traders and explorers began to raise money, take risks and stimulate economic growth. Capitalism has begun. But it started with a lot of resistance. The motive for profit was rejected and embarrassed. The use of usury, interest on loans, was banned by the church. Jobs were assigned according to tradition and cabinets. Innovation was hindered, efficiency was hindered, and death was punished. The guild protested in the 16th century in England when mass production began in the weaving industry. Efficient workshops by 200 weavers and butchers and bakeries for workers were banned by the king on the pretext of this inefficiency. At the end of the 17th century, a French innovative button maker was fined and registered. Imports of printed calico cats killed 16,000 people.
But the world will soon realize that innovation is generally better at improving lives and efficiency is the way to a higher standard of living. Like Robert L. Heilbrowner, among the philosophers of the world, said: “The pre-capitalist era led to the birth of printing presses, paper mills, windmills, mechanical watches, maps and many other inventions. The idea of ​​the invention itself was experimentation and innovation. It was seen. ”

With the advent of complex markets and capitalists, the battle for ideas to explain the sources of wealth and how the markets work has intensified. Between 1550 and 1800, a philosophy called mercantilism was at the forefront. Mercantiris had the misconception that national wealth was based solely on how much treasure and gold could be obtained and how much was exported.

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