ECONOMY OF THE INCA EMPIRE

Economy of the Inca Empire

Central Economy

The Incas had a centrally planned economy, perhaps the most successful ever seen. Its success was in the efficient management of labor and the administration of resources they collected as tribute.

Collective labor was the base for economic productivity and for the creation of social wealth in the Inca society. By working together people in the ayllu (the center of economic productivity) created such wealth that the Spanish were astonished with what they encountered.

Every citizen was required to contribute with his labor and refusal or laziness was punishable with the death penalty. Labor was divided according to region, agriculture would be centralized in the most productive regions, ceramic production, road building, textile and other skills according to ayllus.

The government collected all the surplus after local needs were met and distributed it where it was needed. In exchange for their work citizens had free clothing, food, health care and education.

The Incas did not use money, in fact they did not need it. Their economy was so efficiently planned that every citizen had their basic needs met.

Economic exchanges were made using the barter system by which people traded with each other for things they needed. Archaeologists believe that there was no trading class in the Inca society. However there was external trading in small scale with tribes outside the empire mostly from the Amazon.