Lesson 3: Babylonia
As Sumer weakened, invaders began to overrun its cities. One group
of invaders took over the small town of Babylon, located near the
point where the Tigris and Euphrates flow close together. This previously
insignificant town became the centre of a new Mesopotamian empire
known as Babylonia.
The Economy of Babylonia
When we speak of the economy of a country, we mean the system which
that country uses to produce, distribute, and consume goods. The economy
of Babylonia
was based, like that of Sumer, on agriculture. In Sumer, agricultural
products such as grain and wool were often traded for goods the Sumerians
could not produce themselves. This system was known as bartering.
Bartering
was used in Babylonia, too, but money gradually replaced it as a means
of exchange. The money was in the form of bars of precious metals—silver,
copper, or gold. The Babylonians even had banks to manage their money.
Money had many advantages. For example, it is easier to handle and
exchange than grain.
Video: The Origins of Money T1 ISDN 56k
The Babylonians
were shrewd businesspeople. Their boats
sailed up and down the Tigris and Euphrates rivers and into the Persian
Gulf, carrying goods that kept the Babylonian markets busy and the
country wealthy.
Land Ownership
In Babylonia, individuals were able to own the land, while in Sumer
they could only rent the land from the priests on behalf of the gods.
There were several advantages to individual ownership. For example,
profits from crops went to the landowners. Land owners were also more
likely to want to improve crop yields because they would receive the
profits.
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