The History of Economics in Society

The development of economics can be easily traced through the different social stages in history and several distinctive periods can be defined. They represent the process of economic advancement and the interaction between social and economic history.
  1. Formation of Economic Structures

    • Early homo sapien developments marked the beginning of economic history.

      As early as man learned how to socialize with the advancement of language, a clear formation of economic structures started. The early homo sapiens started developing agriculture, the necessity of transport resulted in the construction of roads and the land required labor. These needs for agriculture favored the occurrence of the first economic structures -- workers were cultivating the land, which was the earliest form of employment; roads were built, which was the formation of infrastructure and trade between people was established.

    Ancient Times

    • Ancient Rome society had the most advanced economy in ancient times.

      Thousands of years after the first social structures appeared, men were already united in cities, countries and social classes. Ancient Greece, for example, along with Egypt and Babylon are the first societies that had distinctive economic layers and established the foundations of modern-day economic studies. They developed advanced approaches in trading, had a distinctive employment system, social services and well-formed infrastructures within their cities and colonies. Later in time, Rome became the economic knowledge center of the world and further established the presence of economics in the development of society.

    Middle Ages

    • Economics in the Middle Ages were mainly subordinated to the social values of feudalism -- what the ancient time economic development achieved, the Middle Ages destroyed. The economic structures were dependent on feudal rulers, independence in production and the free distribution of trade was suppressed. This period slowed down the economic development of societies all over the world and for more than 500 years, the economics of Europe remained in a single feudal stage. This did not allow further social and scientific advancement. The Great Geographic Discoveries made by European voyagers in the 14th through 17th centuries led to the abolition of feudalism and the establishment of democracy.

    Modern Times

    • Modern Times Development boosted the growth of economies all over the world.

      After the Middle Ages, the world undertook democracy as a main source for political and economical freedom. Links between the societies were established and continuous feudal wars were terminated. The freedom of people, the scientific development and the formation of larger independent states led to the growth of economic values along with the increasing awareness of people. The first banking institutions and modern universities were established, and mankind finally undertook the approach to economic development that is still present in the society model of each country.

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