Market Economy: As Old As Bronze Age?

Archaeologists have unveiled evidence suggesting that a form of the market economy may have existed as far back as the Bronze Age. Recent research into the daily expenses of prehistoric Europeans reveals striking similarities to modern-day spending patterns.

The analysis focused on over 20,000 metal objects from more than 1,000 hoards uncovered in Italy, Switzerland, Austria, Slovenia, and Germany, dating from around 2,300 BC to 800 BC.

The Birth of Fragmented Metal Money

Starting around 1,500 BC, it appears that Europeans began intentionally breaking metal objects to create pieces that corresponded to a specific weight unit, approximately 10 grams, which was recognized across Europe.

By studying these fragmented objects, researchers concluded that these metal pieces likely functioned as an early form of currency. Statistical analysis confirmed that these fragments circulated widely, suggesting a system of exchange rooted in shared value units.

Spending Patterns Mirror Modern Households

When comparing the spending distributions of prehistoric Europeans with those of present-day Western economies, researchers observed an almost identical pattern. Most expenses were small and everyday in nature, with larger expenditures appearing less frequently.

This distribution implies a proportional economic system, akin to a market economy regulated by supply and demand, where individuals participated according to their earnings.

Rethinking Prehistoric Economies

The findings challenge conventional views of ancient economies as simplistic, barter-based systems. Instead, this research proposes that elements of a market economy predate both state structures and the invention of coinage in Europe.

This insight suggests that market behavior may be a fundamental human trait, predating societal and technological advancements once thought necessary for complex economies. The results redefine prehistoric societies, highlighting surprising similarities between ancient and modern economic behavior.