Essay on the Economic organization of the society

They are (i) Hunting and fishing state; (ii) Pectoral stage; (iii) The agriculture stage; (iv) The handicraft or commercial stage and (v) Industrial stage.

The hunting and fishing stage

In early times, men used to support their lives by hunting and fishing. In this stage the wants of human beings were very limited and could be easily satisfied. For instance when someone felt hungry, he just plucked some fruits and leaves or went for fishing.

If he wanted something to cover his person, he made use of bark of trees or skins of animals. If he wanted a shelter, a cave or dense free served the purpose. Man depended for the satisfaction of his wants on what he found. He did not make anything. Wants were few and simple and they were satisfied in simple ways.

Off all the wants that for good was the most difficult to be satisfied and shaped the economic life as a whole. The plucking of fruits and plants was an easy task but when it was necessary to kill animals with rough instruments much exertion and skill were required. These were their times when fruits and plants did not grow due to famine or some other reason, and the animal became scarce due to fatal diseases or due to their flight in large numbers when being chased by hunters. When animals moved to some new tract, men had to follow them. Population was therefore migratory and sparse. On an average man required 60 to 80 sq. miles of land to maintain himself.

Prisoners could not be allowed to live and easily led. Hence cannibalism i.e. practice of eating human flesh was prevalent. It should however be noted that fishing tribes were more peaceful than hunting tribes. They did not move from place in place. Very frequently for fish increase in number so rapidly that they remain plentiful inspite of being caught. This population was therefore dense fixed.

The principles of private property had not yet made its appearance. By private property is meant the ownership of property by private individuals. In the hunting and fishing stage nobody possessed anything. Whatever was required was no sooner obtained than it was consumed. Each individual was self- sufficient and exchange had not yet originated.

The nomadic stage

The next stage of economic education is known as pastoral stage. Animals were the centre around which the economic life was built up in those days. Increase in human intelligence had led to the realisation of the value of animal. They provided milk and wool. They insured a regular supply of meat, they could also use for riding purpose. Man therefore began to tame useful animal instead of killing them.

Animals live on grass which grows on pasture lands. The domestication of animals is therefore closely related to the availability of pasture lands. And tfe discovery of fresh grazing ground for animals was an important problem which the people of pastoral stage had to tackle. As soon a one grazing ground ceased to be useful they migrated along with their cattle.

When green grass land were found men used to live into fixed abodes temporarily. Since food supply was greater in their stage than the proceeding one the population also tended to be denser. The necessity of fresh grazing grounds was a fruitful source of war. But the practice of killing war prisoners was given up in this stage for they could be better utilized as slaves for looking after the animals, and for other rough work. The system of slavery had its origin in these days.

The greater stability and increase in the food supply and the practice of keeping slaves resulting in some leisure which men utilized in doing finer and better things. Instruments and implements to be made better houses began to be constructed. Economic progress had its beginning in these conditions.

Private property also made its appearance now. Animals were owned personally and were given personal supervision. But private property was not extended to land. Self-sufficiency constituted to be the keynote of economic life and exchange did not yet appear.

The agriculture stage

So far men’s existence was precarious and he was on look of secure sources of food supply, an increase in this knowledge and his growing control over nature led him to hit upon agriculture or tillage of soil as a solution. This was the next stage in the economic evolution of society.

therefore strengthened in this stage. So was the system of private property. Land became very useful thing and was found limited in supply, the principle of private property was readily extended to it.

Warfare continued even in this stage. Whenever crops failed of or animal died, or, when more land or more slaves were needed, clan conflict took place. Self sufficiency and absence of commerce still largely remained the characteristic of economic life.

The handicraft stage

With the passage of time man’s knowledge and the leisure at his disposal increased and he began to manufacture small things like knives, boats etc. The number of occupations increased and men began to specialize in certain occupation. Some persons became carpenters, other blacksmiths and still other agriculturists. Society was thus split up into large number of occupations the manufacturing occupations were known was done by hand. Hence the name handicraft stage.

Specialization brought exchange on the stage. When man began to specialize in one particular occupation they produced only few things and it was necessary for them to exchange their surplus produce only other articles which they needed. Exchange of commerce became a necessary economic phenomenon and the trade was born.

In the beginning one article was exchanged for another. In other words exchange took the shape of barter. But barter had several difficulties like the need of double coincidence of wants, absence of measure of value and others which shall be discussed in detail under exchange. These difficulties led to the invention of money after which exchange took the shape of purchase and sale.

The first article manufactured by man must have been weapons to kill animals and to fight. Later on useful articles like utensils, cloth etc. would have been repaired.

These things began to find markets slowly and gradually. As market increased merchants began to give raw materials to village artisans and get the articles prepared from them to order. The system is known as domestic system of industry and prevailed before the modem factory system.

The industrial stage

The place of economic progress however continued and inventive genius of the human race brought machinery on the stage. The invention and use of machinery led to such a remarkable change in the economic conditions of society that an era of Industrial revolution first came in England and covered the country from 1750-1850 roughly.

From England is found its way to other countries of the world. The machinery which were newly invented were very costly and complicated and were driven by power, as the example, water, stream and electricity. It is this stage to which the society has reached today. So important is the part played by power, water and electricity. In modern times that to present stage is known as ‘Age of Power’.

The introduction of machinery resulted in vert fundamental and far reaching changes. Powerful and costly machinery have necessitated the work in together of hundreds and thousands of workers under one roof. Machinery have increased output tremendously and have in craft out of the field. Big factories are to be seen everywhere these days. Big factories naturally lead to big town.

A factory is set up at a particular place usually because the later has various industrial advantages like the availability of raw materials, labour, capital etc. The establishment of factory brings into prominence the industrial advantages of that place and other industries are also attracted thereto. After some time it grows into a big industrial town and big factory and big town have become the most prominent features of the modern society.

The introduction of costly machinery and establishment of big factories have created spite in the society. The society has now been divided into those who own such costly things called capitalists and those who do not possess them and do simple work in the factories for wages called labourers. Capitalists and labourers are generally at daggers drawn.

Labourers feel that it is they who work and produce things. But still they are given only a few chips daily while very large profits are pocketed by capitalists. As a matter of fact those profits should be given to them because it is their labour which creates them.

Capitalists on the other hand feel that they invest enormous capital in factories and it is only natural that they should get substantial reward thereof. This conflict often leads of strikes and lockout which are unwelcome interruption in the otherwise smooth running of the economic mechanism.

Machinery has enable man to control nature and harmed her resources for productive purpose. Production has therefore increased enormously. It has associated with a corresponding increase in trade and commerce which have become international.

Trade is carried on with the help of certain auxiliaries like transport, banking and financial system etc. of which have been largely improved. Money economy has been replaced by credit economy to give sufficient scope for modern economic activities. In the modern industrial stage manufacturing industries occupy a central place. Trade and commerce are considered to be their auxiliaries, while agriculture is given a minor position though the importance of agriculture has been increasing since the last Great war.