"A simple memorable framework for explaining how economics misconceived the problem."
-- Judy Z. Stephenson, PhD, Associate Professor of Economic History at University College London.
Once upon a time, our ancestors lived in small bands of hunters and gatherers. Some learned to make devices to catch and kill game. Others learned to cultivate gardens and build shelters. Early technologies and division of labor developed. We may suppose they gave furs, fruits, and other goods to family and cousins. And we may suppose some trades, such as fish for apples, would happen. Trades across time led to lending, such as arrows today for a share of tomorrow's hunting prize, or seeds in the fall for a share of the harvest in the spring.
When families grew to many members or when they met travelers and other bands, they traded more often than they made outright gifts. For they didn't know these strangers well and shared no past with them.
After 40 or 50 centuries, people had learned to trade their labor for food, shelter, tools and a little comfort, or for money. Some had a talent for accumulating money.
In our highly productive society a few people have vast wealth. They can purchase anything they desire. They have social influence. Others, in predictably large numbers, will fall asleep hungry tonight. Why the disparity?
In its complexity, our basic economic system has many moving parts. Each part has a story. The kaleidoscopic Tale of Capitalism gives you a collection of stories you might tell to friends.
You will find out how the economic system works, how it favors some while overlooking others, and how to make it better.
DANIEL BROCKMAN has Mathematics and Finance degrees and lifelong interest in history and economics. He worked in statistical analysis and software development in investment companies and banks for 30 years.
Dan swims, hikes and rides his bicycle near his home in the state of Washington, USA.
