CUSTOMARY RULES AND ECONOMIC ORDER
Economic orders have changed through changes in rules of conduct, mainly by relaxing strict rules that restricted individual actions. This led to more personal freedom and rules that protect individuals rather than control them. For instance, practices like bartering, private property, and lending money were initially against the old customs but ended up helping society grow. In early societies, sharing resources based on need was common, but to develop into a market economy, these sharing habits had to change. This change allowed for specialization, where people could work on specific tasks guided by general rules rather than personal relationships. Many people do not realize that the division of labor relies on impersonal signals from the market instead of direct knowledge about others. Most people also struggle to accept that the valuable rules in society, including language and morals, developed over time without any deliberate planning. These rules are essential for building complex societies, even if they don’t always fit well with what individuals want. Understanding these rules is important because they help society function and grow, even if they don’t always increase personal happiness.
Economic orders have changed through changes in rules of conduct, mainly by relaxing strict rules that restricted individual actions. This led to more personal freedom and rules that protect individuals rather than control them. For instance, practices like bartering, private property, and lending money were initially against the old customs but ended up helping society grow. In early societies, sharing resources based on need was common, but to develop into a market economy, these sharing habits had to change. This change allowed for specialization, where people could work on specific tasks guided by general rules rather than personal relationships. Many people do not realize that the division of labor relies on impersonal signals from the market instead of direct knowledge about others. Most people also struggle to accept that the valuable rules in society, including language and morals, developed over time without any deliberate planning. These rules are essential for building complex societies, even if they don’t always fit well with what individuals want. Understanding these rules is important because they help society function and grow, even if they don’t always increase personal happiness.