Changes in Economic Practices over Time: Through the Ages Project Part 7 of 10

By Jacob Lindbert

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Introduction

Throughout time, as technology, education, culture, etc. have changed, so too have economic practices. From early bartering systems to the complex global economies of today, each system has served its role in the society in which it existed. This paper will dive into the progression of economic practices from early trade patterns to the rise of capitalism and global trade, and finally discuss the modern age of digital transactions.

Ancient Egypt

The ancient Egyptian economy was heavily reliant on trade, where goods and services could be swapped for food and shelter. Ancient Egypt was a country full of natural resources, yet it was not self-sufficient and relied on trade for necessary goods and luxuries (Mark, 2017). To set up a standardized system, goods and services were valued based on a unit called the deben. While this was not an actual coin or currency, it helped create a system where goods and services could be appropriately valued. This prevented a system where everyone sold the same product for a vastly different price.

With regard to trade partners, Mesopotamia was an early trade partner and influenced the development of Egyptian art, religion, and culture (Mark, 2017). Many of the materials that were used as staples of Egyptian culture were obtained through trade. As time went on, more trade partners played a role in Egyptian society, including Libya, Nubia, and Levant. These partners brought precious metals and gems that were not otherwise available in Egypt, and were mostly sought after by nobles and royalty. They also provided many valuable resources, including wood and ivory that were used in creating personal goods and products. As a whole, the kinds of goods that were traded varied largely by region, and because of this, set trading pathways were developed, building physical connections between other countries and territories.

Ancient Greece

Ancient Greece had a diverse economy, comprised of various sections including agriculture, trade, and craftsmanship. Agriculture served as the backbone of the Greek economy, trade connected them with the rest of the discovered world, and craftsmanship enhanced the economy and culture of the area (AncientSocieties Team, 2025). Crops and livestock made up a core piece of the Greek economy, with crops like barley, wheat, olives, and grapes being used to generate products like wine and olive oil, which could be traded or sold. Livestock like sheep, cows, and goats were valued for their wool, milk, and meat. These goods could then be sold on the Maritime trade route or in local marketplaces, exchanging excess crops, milk, wool, or eggs for other goods and services.

The introduction of established coins helped revolutionize the economy, placing set values on each coin. The most common material that was used to make the coins was silver, which was then used to facilitate trade patterns. Merchants often held significant power over trading patterns and drove the buying and selling of specific goods. These merchants would often bring back new customs, art, philosophies, and other unique or luxury items. Many artists would travel with merchants, making their way to Greece and adding their ideas to its culture, leading to the construction of well-known structures such as the Parthenon (AncientSocieties Team, 2025). All of these factors added to the rich landscape that made up the Greek economic system and paved the way for future generations.

Ancient Rome

The Roman Empire left a huge mark on history due to the size and power of the empire, and as a result of this, its trade power was very influential. The Romans developed extensive road networks and harnessed the Mediterranean Sea, enabling them to connect with distant regions and facilitate the movement of goods (Roman Empire Staff, 2025b). The Empire traded and bought commodities like pottery, glass, wine, olive oil, and many others. Access to public services was another distinct feature of Roman life, contributing to the quality of life, including public baths and established water distribution systems (Roman Empire Staff, 2025a).

Roman engineers significantly enhanced the ability for trade to take place. They excelled in building roads that were not only straight and durable but also widespread (Roman Empire Staff, 2025b). This allowed for trade throughout the empire as well as with surrounding areas, fostering an improved network of merchants and travelers. Paired with the power of the Roman navy protecting access to the Mediterranean Sea, the Roman trading system was very strong and unlike any economic system that had previously existed. Notable imports included Spain’s valuable metals like silver, Egypt and North Africa’s crops, Britain’s tin and iron, and Italy’s wine (Roman Empire Staff, 2025b).

The Roman Empire relied on taxes to ensure funding for its major activities, including building and maintaining roads, developing infrastructure, and supporting the building of an army. While essential, taxes were often a heavy burden on traders and merchants, sometimes limiting the supply of certain goods or services. Notable taxes included the land tax, poll tax, and customs duties tax. The land tax was applied to farmable land, the poll tax was the annual tax amount that an individual might have to pay based on their income, while the customs duties tax was levied against goods entering cities like Rome (Roman Empire Staff, 2025b). Additional income to the government came from newly conquered territories, which were often required to pay tributes of precious metals, gems, or soldiers for military service.

Middle Ages

The Middle Ages were heavily influenced by the feudal system, where lords owned land and peasants worked that land in exchange for food and shelter. This relationship drove the economy as most individuals were largely reliant on the lords of the land they worked on. Additionally, the further growth of towns and the expansion of trade routes, such as those along the Mediterranean Sea, led to the development of a more sophisticated economy and the emergence of long-distance trade (Biernat, 2023).

With the established class divides, life was very different for a lord compared to a peasant. The average day for a peasant involved large amounts of physical labor, either tending to livestock, working in the fields, or completing household chores. At the end of a workday, most people would return home for dinner, spend time with one another, and participate in events before going to sleep early to get rest for the next workday. On the other hand, lords were not working the fields daily and had time to attend shows or plays.

The monetary system of the Middle Ages was largely built upon the use of coins. Coins were regularly made of gold, silver, or copper and held specific values that could be exchanged for other goods or services (Biernat, 2023). Different regions used different types of coins and currency methods, making standardization impossible and confusing. Even with these differences, currency was important in fostering the buying and selling of goods between people and places.

 

Renaissance

The Renaissance was a period of significant growth and development, namely the rise of capitalism. The rise of the middle class was witnessed during this time, leading to an increase in trade and travel, as well as the spread of new ideas (Green, 2024). This drove an increase in the desire for education, placing an emphasis on the arts, scientific discoveries, and new inventions. Renaissance economics focused on production based on human creativity, emphasizing education, science, incentives, and entrepreneurship (Green, 2024). The shift to a capitalist economic system drove significant change to the culture and environment of the world. This changed how individuals operated within the economic system, eliminating the lord-servant system and creating one where people can operate independently within it.

Trade was another major piece of the economy of the Renaissance. Wealth accrued from exploration, such as the influx of gold and silver from the Americas, accelerated the economic growth of Europe. This was connected with the other major economic system during this period, mercantilism. This revolved around the idea that the nation’s wealth and power were best when exports were high and imports were low. This helped drive the expansion of global trade patterns and added significantly to the sharing of goods, ideas, beliefs, knowledge, and more around the globe.

 

Modern Age

As time continued and more of the world was discovered and settled, global trade patterns continued to evolve and develop. The discovery and settling of the Americas established new countries and new trade partners. As a result of the rise of economies within new countries, many countries experienced a decrease in their wealth and power (Stearns, 2020). Much of this was rooted in the new independence of countries like the United States, and no longer paying large sums of money through taxes to England, keeping that money for their own use once independent. This is what drove much of the economic turmoil throughout the 18th and 19th centuries, as kingdoms and empires were broken up, giving way to the newly won independence.

Additionally, other economists began developing their principles, including Adam Smith, proposing the idea of an ‘invisible hand.’ This suggested that individuals will pursue things that benefit them as opposed to society at large. This has laid the foundation for many countries today, emphasizing the benefits of free markets with limited governmental intervention (AccountingInsights Team, 2024). Another important political and economic concept that arose during this time was Karl Marx’s manifesto outlining communism. This economic system emphasized everyone being equal with all in the society pooling and sharing resources evenly.

Today, many countries employ different economic systems. Some of the most prevalent are the market economy and the mixed economy. The market economy operates on principles of supply and demand, where individuals and businesses make their own decisions based on their interests (AccountingInsights Team, 2024). Mixed economies involve government involvement to regulate the market and provide goods and services like welfare. This system aims to have an efficient economy while simultaneously ensuring that other social needs and objectives are met.

The rise of centralized banking systems has further transformed how individuals interact with and store their money. With these systems, credit and debit were formed, interest rates and loans were established and standardized, and other specialty accounts have been created. National centralized banks drastically impact the world, regulating interest rates, money supply, and financial regulations and policies.

Modern day, international trade and global markets continue to be instrumental to the success of individual countries. These relationships are often very complex and constantly changing based on partnerships, wars, and other global political, social, or economic issues. These trade patterns allow countries to specialize in producing goods where they have a comparative advantage, leading to more efficient resource allocation and increased global output (AccountingInsights Team, 2024). This helps promote global cooperation where no one country can produce everything needed and relies on others, strengthening partnerships and enhancing the global economy.

Conclusion

Evaluating the change in economic practices from early bartering systems to the connected global market that exists today reflects the many new resources, technologies, and ideas that have been developed throughout history. While early civilizations like Egypt, Greece, and Rome had simpler frameworks, they laid the foundations for trade, building infrastructure to facilitate patterns of connection. Later periods, like the Middle Ages and Renaissance, built upon earlier periods and paved the way for capitalism, exploration, and individualism. The rise of centralized banking systems and technology during the modern age transformed the way people engaged in economic markets. Today’s global trade patterns, supported by digital transactions and international cooperation, highlight the dynamic and interconnected nature of the world economy. As technology continues to develop and international relations are ever-changing, economic systems and networks will change alongside it, shaping how societies interact with each other and the greater world.

Sources

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Biernat, M. (2023, February 4). The Economy in the Middle Ages: The Medieval Economic System – Political Economy. Political-Economy.com. https://political-economy.com/the-economy-in-the-middle-ages-the-medieval-economic-system/#google_vignette

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