Economics

Prehistoric Developments

About 1.6 million years ago, the emergence of Homo erectus, a predecesso of the modern [Page 374]human, can be considered as the initial point for prehistoric economic development. Homo erectus was the first human who was able to use fire, which changed the life of prehistoric humans in a tremendous way: Apart from offering a better and a new method of hunting animals, fire also allowed for cooking meat. This then resulted in better nutrition because it made meat easier to chew and to digest. In addition to the use of fire, the creation of different tools made of stone and wood was an important characteristic of Homo erectus life. This reflected the ability to adapt to different needs and to the changing climate conditions of the Ice Age. Because they were foragers, their economic life consisted of hunting wild animals and gathering wild fruits and roots for only their own needs (subsistence economy). At this stage, there was no private property, and mobility was the key to consistently supplying the members of the community with food. It can be assumed that the foragers were already able to develop hunting strategies, which were realized in small groups of about 30 people. Tasks like observing, hunting, and carving could then be allocated among the different group members; this can be considered as an early form of the division of labor. Another advantage of organization in small groups was the possibility of hunting bigger animals to gain more meat with less effort. Hence, foragers already had to be efficient, productive, and innovative to survive.

The First Agricultural Revolution

from about 15,000 BCE to 10,000 BCE another economic transition took place: Specialized economic forms emerged in different geographic areas as a response to the various climate conditions marking the precondition for the development of early civilizations. Tools and weapons became more sophisticated, making hunting easier and more efficient, for example, with the use of bows and arrows, lances, or other longdistance weapons. Moreover, the foragers started cultivating plants or domesticating animals, and overproduction was stored. Hence, the economy changed slowly but consistently from subsistence to bartering and from a possessive to a productive economy. The improvements in food production led to higher population densities and to a change from nomadic to a more sedentary life. As a result, humans were no longer restricted solely to the locally given resources of nature but also created the environment themselves. Fostered by temperate climatic conditions about 8,000 years ago, fertile soil was created, and agriculture became the dominant economic form. Additionally, grazing land and water promoted the development of a high population density, which was the starting point of early civilizations. Food production was no longer driven by coincidence but by the cultivation of plants and the domestication of animals. The advantages of having a meat supply are obvious. Besides meat, other products could be gained, like wool, skins, and bones. However, agriculture was a seasonal activity, and the increasing demand for food due to the growing population resulted in strategies to stabilize the food supply. This resulted in new types of storage, transportation, and the development of lasting agricultural techniques. Consequently, the exchange of goods (e.g., nutrition, tools, and raw materials) was no longer limited to the immediate vicinity; the first interregional trade routes can be determined by archaeological findings. One example is the Fire Stone Route between Bohemia and Bavaria, dated about 7,000 years ago with a distance of 250 kilometers. However, these trade connections were, for the time being, of small importance. The revolutionary steps were to take place in agriculture.

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