03.25.2005 07:37

'The Bloody Invisible Hand': Neanderthals made extinct by division of labor and free trade?


The possibilities for jokes are legion: three economists 'investigated' the possibility (after walking into a bar?) that 'by exploit[ing] the competitive edge gained from specialization and free trade ... humans increased their activities in culture and technology, while simultaneously out-competing Neanderthals on their joint hunting grounds', causing the extinction of Neanderthals: Did Use of Free Trade Cause Neanderthal Extinction?.
Archaeological evidence exists to suggest traveling bands of early humans interacted with each other and that inter-group trading emerged, says Shogren. Early humans, the Aurignations and the Gravettians, imported many raw materials over long ranges and their innovations were widely dispersed. Such exchanges of goods and ideas helped early humans to develop \u201csupergroup social mechanisms.\u201d The long-range interchange among different groups kept both cultures going and generated new cultural explosions, [University of Wyoming economist Jason] Shogren says.

Anthropologists have noted how judicious redistribution of excess resources provides a distinct advantage to "efficient hunters" as measured by factors such as increased survivorship, social prestige, or reproductive opportunities, the researchers say.

"One of the striking features of the archaeological record is that Neanderthal technology was nearly stationary for many thousands of years whereas technology of early humans experienced many innovations," Shogren says.

He says the evidence does not support the concept of division of labor and trade among Neanderthals. While Neanderthals probably cooperated with one another to some extent, the evidence does not support the view that specialization arose from any formal division of labor or that inter- or intra-group trade existed, he says. These practices seem to require all the things that Neanderthals lacked: a more complicated social organization, a degree of innovative behavior, forward planning and the exchange of information, ideas and raw materials.

"Basic economic forces of scarcity and relative costs and benefits have played integral roles in shaping societies throughout recorded human history," Shogren says. "No reason exists today to discount either the presence or potential impact of economics in the pre-historic dawning of humanity."
This post's title is a play on the title of chapter five of Emma Rothschild's Economic Sentiments: Adam Smith, Condorcet, and the Enlightenment, reviewed in numerous places, including the February 2003 issue of the Foundation for Economic Education's The Freeman (link is to a pdf).