CHAPTER 2
Economic Systems FEUDAL LORDS ECONOMICS
TO
TECHNOCRATS
IS A SUBJECT THAT DOES NOT GREATLY
RESPECT ONE’S WISHES.
— NIKITA KHRUSHCHEV
state of global economics is the result of a combination of numerous economic principles that were developed in many cultures and over a long period of time. In this chapter we will look at these principles as functions of the societies in which they were the basis of the political system. Although it was mentioned earlier that economics as an academic discipline first began in the 16th century, our study will start somewhat earlier and look at the medieval European period. The reason for this is that many aspects of that period remained functional centuries after the “Middle Ages” (400-1500 A.D.) ended. As we will see, no economic system is permanent, nor will any have a clear-cut beginning or end. Economics is a discipline of overlaps, both temporal and philosophical.
THE CURRENT
Feudalism The term feudalism refers to an economic, social and political system that was strictly bound by a class structure, with nobility at the top and peasantry at the bottom. In between were various strata that acted as go-betweens for the two extremities. A simple explanation would be that the peasantry belonged to the soil, and the nobility owned that soil. The tradesmen and artisans in between were freemen, but organized by mandate into guilds which in turn were overseen by magistrates appointed by, and answerable to, the nobility. The word “feudal” derives from the Latin feodum, meaning “fee,” not just in the sense of a payment, but in the legal sense of inherited land. Feudal systems are also referred to as “fiefdoms,” wherein the “fief” is the legal inheritance or land grant issued by the nobility and only to males. Each parcel of land came with the people who lived and worked on it, all of whom would give over a portion, usually the majority, of their produce to the member of the nobility appointed as their “lord.” In return, the lord would be responsible for the safety and well-being of all those associated with the fiefdom over which he was master. This class distinction can still be found in common forms of address such as the German “herr,” meaning “lord,” and the English “sir,” derived from “sire” which was the medieval form for addressing male nobility.
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