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The Evolution of the Economy

People cannot exist without regard to society. As social beings, we are compelled to live among people, be assisted by them, and contribute our share for the common good. The evolution of humanity from the clan of the caveman through feudalism and onto capitalism reflects the evolution of our interconnections and our interdependence. In accord with those changes, the way we trade and exchange goods and services has also evolved to reflect the times and their characteristics.

In prehistoric times, humans lived in clans. Then came villages, then cities, and then states. For tens of thousands of years, people worked to provide for themselves, their kin, and the people near them. But as international trade evolved, developed nations began to conquer undeveloped ones and discover new lands. The industrial revolution prompted urbanization and tightened the connections among people.

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