15
quently for the market economy which freed Man from toiling the ground. This development
would not have been possible if money had not been available as a way to store value (
ein auf-
bewahrungfähiges Gut)
and as a common denominator of value. To Hildebrand, the modes of
exchange (die Umsatzformen) are the fundamental powers which enables economy, society and
culture to change. The money economy allowed for improvements, but in the long run the advan-
tages of the money economy developed into disadvantages. The worker, freed from the land, be-
came vulnerable in the ensuing competition in an atomistic society in which the ties of family
and kinship that kept people together tended to break up. To Hildebrand the credit economy
would solve this problem by re-establishing trust and human interaction in qualitatively better
relationships in the processes of exchange and investment.
4.3 Richard Ely – the Main US Stage Theorist – and his Comparison of Stages (1903)
US economist Richard Ely – a student of Karl Knies in Heidelberg – has a good survey of stage
theories in his 1903 book Studies in the Evolution of Industrial Society.
47
Ely (1854-1943) was
one of several German-educated Christian US Economists who were very influen-
[200]rial in
the United States up until, and including, The New Deal. According to The International Ency-
clopaedia of Social Sciences, Richard Ely ‘probably exerted a greater influence upon American
economics during its vital formative period than any other individual.’ The fact that he is nor-
mally labelled a Christian socialist shows how the mental forces that built US society were very
far away from what today is standard Anglo-Saxon economics. Rather than dividing economics
in macro and micro, Ely seems to have income creation and income distribution as the two im-
portant facets of economics.
THE ECONOMIC STAGES
Standpoint__of_Production__From__Bucher’s__Standpoint__From'>From the Standpoint
of Production
From
Bucher’s
Standpoint
From
Hildebrand’s
Standpoint
From the Labor
Standpoint
From
Giddings’s
Standpoint
1
. Hunting and Fishing
Luck
Magic
2. Pastoral
Slaughter of Enemies,
Woman’s Labor, and
Beginning of Slavery
Sacrificial
3. Agricultural
Independent
Domestic
Economy
Truck
Economy
Slavery and Serfdom
Slave
Labor
4. Handicraft
Town
Economy
Money
Economy
Free Labor governed by Cus-
tom
Trade
5. Industrial
(1) Universal Competi-
tion as an ideal
(2) Concentration
(3) Integration
National
Economy
(World
Economy)
Credit
Economy
Individual Contract with In-
creasing Regulation by Statute
Group Contract and Regulation
by Statute
Capitalistic
Source: Ely 1903
47
New York, Chautauqua Press, 1903.
16
Ely’s own stages are similar to those of List: 1: The hunting and fishing stage, 2. The pastoral
stage, 3. The agricultural stage, 4. The handicraft stage, and 5. The industrial stage. More inter-
estingly, however, Ely provides a comparative chart of five different types of stage theories, all
displaying different aspects of the societal development of
[201] Mankind: from the point of
view of production (his own stage theory), from Bücher’s standpoint, from Hildebrand’s stand-
point, from labour’s standpoint, and from Gidding’s standpoint. Gidding’s main stages are
Ceremonial and Business economics. These both have three sub-stages: Luck, magic and sacri-
ficial economies, and slave, trade and capitalistic economies. These different types of stages,
would, of course, often not overlap in time. In this framework – reproduced on the next page –
Carlota Perez’ techno-economic paradigms fit like a natural sixth type of stage theory, based on
the fundamental technologies carrying each period. Taken in conjunction, these stage theories
emphasise different aspects, each of them representing a necessary but not sufficient condition
for the progress of mankind.
4.4 Oppenheimer’s Typology of Typologies
In the third volume, tome one, of his
System der Soziologie from 1923, Franz Oppenheimer
48
has
an excellent and systematic discussion of stage theories from several angles. Oppenheimer starts
by discussing two factors which contribute to the stages: Die Differentierung (i.e. the division of
labour), Die Integrierung (i.e. the integration), which he both divides into their political and
trade aspects. Oppenheimer introduces a special chapter on what he calls Transportwiderstand –
i.e. the resistance to integration that is formed by geographical distance and consequent coasts in
terms of time and transportation cost. His Transportwiderstand lends itself perfectly as a concept
through which the role of infrastructure may be introduced into the discussion of techno-
economic stages.
Oppenheimer thoroughly discusses the combined effects of his two main factors (division of
labour and integration) on the evolution of the following types of stages of societies: 1. The
Stages of Division of Labour, 2. The Stages of Integration (essentially Bücher’s), 3. The Phases
of Evolution (scale of operation seen from the business point of view; i.e. handicraft, manufac-
turing, factories
[202] and trusts), and finally 5. Phases of Means of Circulation (the stages of
monetary sophistication, i.e. Hildebrand’s stages). One interesting aspect of previous stage theo-
ries in the light of the present transition into a new techno-economic paradigm is that the ‘natu-
ral’ tendency towards an ever-increasing scale of operation seems to have ceased with the Ford-
ist mass-production paradigm.
4.5 Rostow’s Non-communist Manifesto (1960)
One of the latest stage theories to gain prominence was the five-stage theory of development
presented by W. W. Rostow his book The Stages of Economic Growth
49
. The subtitle A Non-
communist Manifesto hints at an agenda for the book that is clearly spelled out on the dust
48
Oppenheimer, op. cit., pp. 254-309.
49
Rostow, W. W., The Stages of Economic Growth, Cambridge, Cambridge University Press, 1960.