eed that one cow was worth four hens, then the trade could take place. The problem with the barter system, however, was that in order for a trade to take place, both parties had to want what the other party had. This ‘co-incidence of wants’ often did not happen. The demands of growing business and trade caused a money sysThis article is an authorized excerpt from Ryan's book, Zero to One Million

One of the most important advances needed for the creation of a market system took place sometime between 12000 and 10000 B.C. with the advent of specialization and the start of the Neolithic Age. Instead of each tribe hunting and gathering their food, different persons within each tribe would become experts at a certain task such as hunting, gathering, cooking, tool making, shelter making, or clothes making. As methods of agriculture improved, the first towns and cities were seen. Dependable food supplies allowed people to build permanent houses and settle in one area. As settlements increased in size, new forms of society such as religious centers, courts, and marketplaces developed. The advent of towns produced further specialization, creating jobs in tool making, pottery making, carpentry, wool making, tool making, and masonry, among others. The specialist created items faster and of a better quality than if each family made its own, increasing standards of living.

The earliest signs of the market system at work can be seen with the advent of bartering within tribes as far back as 6000 B.C. in Mesopotamia. If Tom had twenty cows and Igor had eighty hens, and Tom and Igor agreed that one cow was worth four hens, then the trade could take place. The problem with the barter system, however, was that in order for a trade to take place, both parties had to want what the other party had. This ‘co-incidence of wants’ often did not happen. The demands of growing business and trade caused a money syst

hering their food, different persons within each tribe would become experts at a certain task such as hunting, gathering, cooking, tool making, shelter making, or clothes making. As methods of agriculture improved, the first towns and cities were seen. Dependable food supplies allowed people to build permanent houses and settle in one area. As settlements increased in size, new forms of society such as religious centers, courts, and marketplaces developed. The advent of towns produced further specialization, creating jobs in tool making, pottery making, carpentry, wool making, tool making, and masonry, among others. The specialist created items faster and of a better quality than if each family made its own, increasing standards of living.

The earliest signs of the market system at work can be seen with the advent of bartering within tribes as far back as 6000 B.C. in Mesopotamia. If Tom had twenty cows and Igor had eighty hens, and Tom and Igor agreed that one cow was worth four hens, then the trade could take place. The problem with the barter system, however, was that in order for a trade to take place, both parties had to want what the other party had. This ‘co-incidence of wants’ often did not happen. The demands of growing business and trade caused a money sys

settle in one area. As settlements increased in size, new forms of society such as religious centers, courts, and marketplaces developed. The advent of towns produced further specialization, creating jobs in tool making, pottery making, carpentry, wool making, tool making, and masonry, among others. The specialist created items faster and of a better quality than if each family made its own, increasing standards of living.

The earliest signs of the market system at work can be seen with the advent of bartering within tribes as far back as 6000 B.C. in Mesopotamia. If Tom had twenty cows and Igor had eighty hens, and Tom and Igor agreed that one cow was worth four hens, then the trade could take place. The problem with the barter system, however, was that in order for a trade to take place, both parties had to want what the other party had. This ‘co-incidence of wants’ often did not happen. The demands of growing business and trade caused a money sys

items faster and of a better quality than if each family made its own, increasing standards of living.

The earliest signs of the market system at work can be seen with the advent of bartering within tribes as far back as 6000 B.C. in Mesopotamia. If Tom had twenty cows and Igor had eighty hens, and Tom and Igor agreed that one cow was worth four hens, then the trade could take place. The problem with the barter system, however, was that in order for a trade to take place, both parties had to want what the other party had. This ‘co-incidence of wants’ often did not happen. The demands of growing business and trade caused a money sys

eed that one cow was worth four hens, then the trade could take place. The problem with the barter system, however, was that in order for a trade to take place, both parties had to want what the other party had. This ‘co-incidence of wants’ often did not happen. The demands of growing business and trade caused a money system to be developed. Silver rings or bars are thought to have been used as money in Ancient Iraq before 2000 B.C. Early forms of money would usually be specie, or commodity money. Examples range from seashells, to tobacco leaves, to large round rocks, to beads.

While the money system still had much development to go through (credit and paper money did not yet exist), its invention over four thousand years ago was of crucial importance to the world we live in today. The use of an accepted medium to store value and enable exchange has greatly enhanced our world, our lives, our potential, and our future.

In the year 1100, the prevailing system in the Western World was feudalism. It was a world of kings and lords, vassals and serfs, kingdoms and manors. Long distance trade was expanding and new worlds of foreign spices, oriental treasures, and luxurious silks were discovered. Three hundred and fifty years later, after weathering a Black Death and the Hundred Years War, Europe emerged by expanding trade to new levels and building the foundation for the start of the competitive market economy we know today.

With a population spurt starting around 1470, cities, markets, and the volume of trade grew. Banking, initially started by Ancient Mesopotamians, grew to ne