Comment: Re:A giant leap backwards. (Score 1) 108
Originally, all transactions were based are barter, before human beings discovered that the use of money was a much more efficient means of matching up supply and demand.
Well, sort of. But people started using money, loosely defined, pretty damn quick. Talking about the third and early second millennia BC:
The principal exports from Sumer to Tilmun were textiles and oil, provided by private capitalists. In the absence of coined money (which was not invented until well into the first millennium BC), there was always the problem of paying for goods and of stating the relationship between values of different commodities. One solution was to use a silver standard, even when payments were not actually made in silver . . . . This kind of use of a silver standard without actual payment in silver was a widespread commercial device before the invention of coinage. An Egyptian document of just after 1300 BC presents . . . [a] good example of it. It is a record of a lawsuit relating how a merchant had gone from house to house, offering a Syrian slave-girl for sale, until finally the wife of an official bought her. The price was stated in terms of silver, but was actually paid in various cloths, garments and bronze vessels, each item being valued in silver separately.[1]
So basically, even before there was actual money, people were using the abstraction of it in order to make their barters.
[1] Saggs, H.W.F. The Babylonians: A Survey of the Ancient Civilisation of the Tigris-Euphrates Valley. (London: The Folio Society, 1999), 215.