The greatest mystery of the Inca Empire was its strange economy
And yet, despite all their productivity, the Incas managed without money or marketplaces. In The Incas: New Perspectives, Gordon Francis McEwan writes:
With only a few exceptions found in coastal polities incorporated into the empire, there was no trading class in Inca society, and the development of individual wealth acquired through commerce was not possible . . . A few products deemed essential by the Incas could not be produced locally and had to be imported. In these cases several strategies were employed, such as establishing colonies in specific production zones for particular commodities and permitting long-distance trade. The production, distribution, and use of commodities were centrally controlled by the Inca government. Each citizen of the empire was issued the necessities of life out of the state storehouses, including food, tools, raw materials, and clothing, and needed to purchase nothing. With no shops or markets, there was no need for a standard currency or money, and there was nowhere to spend money or purchase or trade for necessities.
So the Inca did engage in trade, but only with outsiders - not among themselves.
The secret of the Inca's great wealth may have been their unusual tax system. Instead of paying taxes in money, every Incan was required to provide labor to the state. In exchange for this labor, they were given the necessities of life.
Of course, not everybody had to pay labor tax. Nobles and their courts were exempt, as were other prominent members of Incan society. In another quirk of the Incan economy, nobles who died could still own property and their families or estate managers could continue to amass wealth for the dead nobles. Indeed, the temple at Pachacamac was basically a well-managed estate that "belonged" to a dead Incan noble. It's as if the Inca managed to invent the idea of corporations-as-people despite having almost no market economy whatsoever.
Food, Not Markets
One of the outstanding questions for scientists and historians who study the Incas is why this wealthy, sophisticated culture developed scientifically and culturally without ever inventing markets. One possibility is that life was so difficult to sustain in their environment that all their innovations revolved around agriculture rather than economics. In other words, the Inca Empire was optimized to prevent starvation rather than to foster trade.
http://www.stumbleupon.com/su/2SXDSY/io9.com/5872764/the-greatest-mystery-of-the-inca-empire-was-its-strange-economy
= new reply since forum marked as read
