Natural Economy: Unlocking the Secrets of Natural Economy, a Journey into the Heart of Economic Systems

By Fouad Sabry

What is Natural Economy

The natural economy is a form of economic system in which the transfer of resources among individuals does not include the use of monetary exchange. Direct trading, entitlement by law, or sharing out according to historic custom are all examples of methods that are utilized in this system for the distribution of resources. In the more intricate kinds of natural economies, certain items may serve as a referent for fair bartering; nevertheless, in general, currency plays only a tiny role in the process of resource allocation. The majority of the items that are created in a natural economy system are not produced with the intention of exchanging them; rather, they are produced for the purpose of direct consumption by the producers themselves, which is referred to as subsistence. Therefore, natural economies have a tendency to be self-sufficient, meaning that all of the items that are consumed are produced within the country.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Natural economy

Chapter 2: Capitalism

Chapter 3: Capital (economics)

Chapter 4: Commodity fetishism

Chapter 5: Economic system

Chapter 6: Exchange value

Chapter 7: History of capitalist theory

Chapter 8: Reproduction (economics)

Chapter 9: Law of value

Chapter 10: Unearned income

Chapter 11: Merchant capitalism

Chapter 12: Economy

Chapter 13: Commodity (Marxism)

Chapter 14: The Origin of Capitalism

Chapter 15: Value-form

Chapter 16: Spheres of exchange

Chapter 17: Perspectives on capitalism by school of thought

Chapter 18: Marxian economics

Chapter 19: Proletariat

Chapter 20: Crisis theory

Chapter 21: Criticism of value-form

(II) Answering the public top questions about natural economy.

(III) Real world examples for the usage of natural economy in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of natural economy.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Jan 9, 2024

Book preview

Chapter 1: Natural economy

Natural economy is a type of economy in which no money is used to transfer resources between individuals. It is a system of allocating resources through direct bartering, legal entitlement, or distribution in accordance with customary norms. Some goods may serve as a standard for equitable bartering in the more complex forms of natural economy, but currency generally plays a minor role in allocating resources. As a result, the majority of goods produced in a natural economy system are not intended for exchange, but rather for direct consumption by the producers (subsistence). As a result, natural economies tend to be self-sufficient, with all consumable goods produced domestically.

{End Chapter 1}

Chapter 2: Capitalism

Capitalism is an economic system in which the means of production are privately owned and operated for profit.

As early as the 17th century, writers were using the term capitalist to describe someone who owned capital. Capital is derived from capitale, which is derived from caput, meaning head in late Latin; chattel and cattle, in the sense of movable property, are also derived from this root (only much later to refer only to livestock). In the Middle Ages, the term capitale came into use to denote a sum of money, a stock of goods, or any other monetary asset that carried an interest rate. According to the OED, private capitalism was first used in 1863 by German American socialist and abolitionist Carl Adolph Douai.

Cosimo de' Medici, who established a global banking empire and was a pioneering member of the Medici family

Agrarian capitalism and mercantilism developed in early Renaissance city-states like Florence, laying the groundwork for modern capitalism.

As the manorial system collapsed and land was consolidated into the hands of fewer landlords with larger estates in 16th-century England, the economic underpinnings of the feudal agricultural system began to shift significantly. Workers were increasingly employed as part of a larger, expanding money-based economy, as opposed to a serf-based system of labor. Landlords and tenants were both compelled to boost agricultural output for financial gain as a result of the system; the diminished coercive power of the aristocracy to extract peasant surpluses encouraged landlords to experiment with new techniques, and tenants needed to innovate in order to thrive in the increasingly competitive labor market. Market forces were beginning to replace the outdated system of custom and feudal obligation when it came to the terms of land rent.

A painting of a French seaport from 1638 at the height of mercantilism

Mercantilism refers to the economic theory that was popular from the 16th to the 18th centuries.

Robert Clive with the Nawabs of Bengal after the Battle of Plassey which began the British rule in India

During the Elizabethan Era (1558–1603), Britain took a comprehensive and expansive approach to mercantilism. England's Treasure by Forraign Trade or the Balance of our Forraign Trade is The Rule of Our Treasure, an argument by Thomas Mun, provided the public with a systematic and coherent explanation of balance of trade. It was penned in the 1620s and first released to the public in 1664. Traders who had participated in the previous mercantilist phase now put their money into the East India Companies and other colonies in the hopes of making a profit.

The Watt steam engine, Adam Smith (1723-1790) and the Industrial Revolution in Britain were propelled by steam engines run primarily on coal, fundamental mercantilist doctrines were challenged, such as the idea that global wealth was fixed and that one nation could only become richer by stealing from others.

As a result of the changes brought about by the Industrial Revolution, artisans, guilds, and journeymen saw their traditional craft skills decline and the capitalist system become dominated by industrialists rather than merchants. The rise of industrial capitalism heralded the rise of the factory system of manufacturing, which was characterized by a complicated division of labor between and within the work process and the routine of work tasks. In response to David Ricardo's advocacy for free trade, Britain lowered tariffs and quotas.

The gold standard formed the financial basis of the international economy from 1870 to 1914.

The spread of capitalism around the world was facilitated by broader processes of globalization. The acceleration of economic and other forms of globalization can be traced back to the early nineteenth century, when a series of disparate market systems coalesced into a relatively integrated global system. with the mixed economy being the norm in the developed Western