Historical trends in the development of economic systems

** Many people imagine a rather modest economic life: such as land use, materials, labor and financial resources for product production, sales, and income income. But such an understanding of the essence of economics distorts the truth, simplifying the complexity of the problem of forming production costs and financial results. **

The simplified understanding of the functioning of the economic system is due to the fact that in the early stages of development of society, the production of small individual home goods is dominated, based on the manual labor of the same family members. The agrarian economy does not require special tools to manage production, since all functions of the birth of the idea and its execution, the production of a product and its sale, are actually done by one person or several persons on the basis of traditional knowledge, skills and habits gained from previous generations.

The economic system is fundamentally altered in relation to the transition of patriarchal social relations from the agrarian way of life to the new capitalists, based on the mode of production industry, requiring different joint employment organizations of hundreds and thousands of workers.
During the formation of the industrial economy, demand for large capital owners for the invention of new tools, progressive technology for the production of goods,

introduction of invention into practice, increased organization of labor and management, and the like is increasing.

Mass production requires deepening of specialization, concentration, combination, production diversification and work mechanization and labor-intensive operations. The natural phenomenon is the development of unprecedented scientific research and the differentiation of many sciences from the eighteenth century to the present day. During this period, many scientists realized the complexity of the economic system and the need to study not only its material basis, but also the unreal factors of development that were no less important for effective economic management.