A BRIEF HISTORY ON ECONOMICS

 

https://www.investopedia.com/articles/economics/08/economic-thought.asp

Economics is a discipline that examines the processes by which societies produce and consume goods and services. Throughout history, economic theory has played a pivotal role in shaping global finance, influencing crucial moments in history, and deeply impacting daily life. However, the foundational assumptions guiding the study of economics have evolved significantly over time. This brief overview explores the early development of economic thought.

The origins of economics can be traced back to the Bronze Age (4000-2500 BCE), where early forms of economic activity were documented across several key regions: Sumer and Babylonia (3500-2500 BCE); the Indus River Valley Civilization (3300-1030 BCE), located in present-day Afghanistan, Pakistan, and India; along the Yangtze River in China; and in Egypt’s Nile Valley, starting around 3500 BCE. These societies developed early systems of notation, using materials such as clay tablets and papyrus, to keep records of agricultural outputs, livestock, and land.

These early accounting systems, which emerged alongside the development of written language, laid the groundwork for more sophisticated economic practices. They included methods for tracking property transfers, recording debts and interest payments, and calculating compound interest—techniques that remain fundamental in modern economics.

Beginning in the third millennium BCE, Egyptian scribes meticulously documented the collection and redistribution of land and goods, reflecting the early administrative complexity of these societies. Meanwhile, Sumerian traders devised methods to calculate compound interest, showcasing an advanced understanding of financial management. The Code of Hammurabi (circa 1810–1750 BCE), one of the earliest comprehensive legal codes, provided a detailed framework for economic activity. It established norms for commerce and outlined ethical guidelines for merchants and tradespeople, demonstrating the importance of economic regulation and governance in ancient societies.

This early period in economic history highlights the foundational practices and theories that would continue to evolve, shaping the economic landscapes of future civilizations.