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Period: 3000 BCE to 1500
Claim
Failed economies in history were generally caused by plagues and wars, but civilizations' economies flourished through agriculture, exploration and foreign trade, and improved financial literacy practices. -
1390 BCE
Egypt's Wealth
Egypt was incredibly powerful because of their wealth from conquests and agriculture. The Nile brought them prosperity and funded their conquests and overtook lands for more riches. -
600 BCE
Lydian Stater
The Lydian Stater was introduced as an official form of coin currency before the Lydian Empire fell to the Persians. This "coin" was used as a standard currency in long distance trades because of their uniform weight and size, and increased the flow of revenue rather than just trading and bartering. -
541 BCE
Justinian's Plague
A plague transmitted by rats spread throughout the Mediterranean region and significantly weakened the political and economic structure of the Eastern Roman Empire. Justinian I did not have the military strength or financial backing to hold back foreign attacks and some of his territory was conquered. -
500 BCE
Athens' Trading Power
Athens was the largest trading power in the Mediterranean because of its extensive navy and foreign connections. Athens was a much wealthier polis than Sparta, because Sparta relied on its unstable agriculture and military instead of naval resources and trade. -
431 BCE
Peloponnesian War
The Peloponnesian War was fought between Athens and Sparta, but Sparta won and became an even more powerful city-state. Athens' economy faltered because it lost its fleet and control of the Aegean trade routes. -
315 BCE
Roman Banking
The Roman banking system allowed Rome to loan, protect, and regulate money and circulation of newly minted currency. Rome became more financially aware and organized. -
241 BCE
Rome Defeats Carthage
Rome defeating Carthage was the final blow; Romans controlled the majority of the Mediterranean and the trade routes it consisted of. Rome became very wealthy because of the control they had over most of the Mediterranean border. -
130 BCE
Silk Road
The Silk Road made long distance trade by land possible, generating considerable revenue for several kingdoms. It also spread ideas that led to innovation in several regions; general output and commerce increased because of the interaction from the Silk Road. -
1337
The 100 Year's War (through 1453)
This sporadic war between France and England cost both sides innumerable lives, but also caused England to go bankrupt. Trade was disrupted and peasants were heavily taxed; no one could afford to continue the war. -
1346
The Black Death
The Black Death killed several million Europeans (anywhere from 75-200 million) and in return production was decreased. Surviving workers had higher wages, but overall, the economy still took a substantial hit when so much of the workforce had perished. -
1492
The Columbian Exchange
The Columbian Exchange began when Columbus discovered the Americas and transported commodities to and from the Old World. There were significant economic benefits for the New and Old World due to the explorations of Columbus. -
1497
Vasco de Gama
Vasco de Game became the first European to reach India via the Atlantic Ocean. This route reopened trade to Asia and luxury goods could be transported again and European and Asian economies benefitted.
