Wednesday, February 3, 2010
Economic Theory Part 2:
Economy year 4:
Suppose the population increases by 25%. Now each farm has 4 people each. The surplus farm is able to store crops to last for half the year. In discussions with the other farmers, it is learned that the supplementing their diet with meat has decreased their need to work the land. They make a deal to provide a measure of produce in exchange for the meat that is hunted by the surplus farm. The surplus farm now only needs 2 people to work on crops, while the other 2 hunt for themselves and the other farmers. The year comes and goes. The surplus farm again sees a surplus in their crops as their meat and what the received from the other farms helped to provide for their food. Now, they are able to save enough produce to last 75% of the year. Each of the other farms were able to meet the price of the surplus farm because of the supplement of meat.
Economy year 5:
Suppose the population again increased by 1 person per farm. Now each farm has 5 people. The surplus farm decides to split. One farm of 2 will work towards hunting only, while the other farm of 3 work the land. They form a contract whereby the produce demands of the hunting farm will be provided so long as the meat needs are provided by the meat farm. The surplus and meat farms now will have enough saved up for a full year of produce. The meat farm needs one more person, so they hire a person from one of the other farms. They agree to provide 40% of the meat needs of that farm in exchange for the persons labor. The 4 remaining farmers keep their output steady, putting in a little extra work each. The year comes and goes.
Economy year 6:
Suppose the population of each farm grew by 1 person once more. The meat farm continues to employ one person from the other farm along with the existing agreement. With 4 hunters now, their efficiency increases to a point where they have extra time to spend at home. During this time, they work on expanding ideas of new hunting methods. One of the hunters begins to work towards building a pen to domesticate a species of animal. The surplus farm, with a full year of surplus crops, continues to work with the other farms at the contracted rate. However, they do not increase their crops. Instead, they stop adding to their surplus. With the extra time, they begin working on building a canal to increase the irrigation of their crops. The year comes and goes. The surplus farm is able to irrigate 50% of their crops for the next season. The hunters have increased their yield through the addition of passive hunting techniques, and the first domestication project is well under way.
Posted by jrchaard at 8:31 AM