Economic Evolution

economic-evolution-headerLong gone are the days of exchanging basic commodities amongst one another in order to provide themselves with all that they required, but nonetheless, it is important that there is an understanding of the changes that took place as they reflect in many ways, the workings of the human mind. It is quite obvious that while at first, simple bartering of commodities was enough to suit the needs of small villages, with the passing of time and the ever growing population, more complex systems needed to be put in place. Societies would become larger and more complex, clear hierarchies started to take shape amongst people, certain roles needed to be created and filled and with that came state expenses. In consequence, societies evolved, and with them, so did the individuals living and contributing to them.

With the evolution of societies, the needs and motivations of the people that were part of them have also seen changes. Once their basic needs were satisfied, individuals would look to satisfy other types of needs which were less existential in a way, such as entertainment, spiritual guidance, higher stature within their collective just to name a few. As time passed, wars have come and gone, but after the 19th century, the process of industrialization and automatization was in full force. Factories would churn out goods much faster now that they were not so reliant on the human element, and at the same time, they would be able to lower their prices and increase profits due to their increased productivity. This represented the foundation of what became the goods economy, where in many cases, they were simple commodities repackaged and resold at a higher price.

Most of the 20th century was characterized by the goods economy, but towards the end of the 20th and the beginning of the 21st century, most developed countries turned heavily towards what was known as the service economy. In the service economy, industries such as tourism and accommodation have thrived and developed tremendously.