“... hunter-gatherer environmental variability theory is central to all the social sciences, including economics.”

Introduction

Unlike other social sciences, during the last c. 250 years, economics has become a widely-respected, extensively-used and comprehensive social science. This outcome raises fundamental questions, for example:

• Why is economics unique among the social sciences in its influence and prestige?
• How has economic theory been developed without the benefit of hunter-gatherer environmental variability theory, if this theory unifies social science?

The surprising answer, unlikely as it may seem, is that economics has become a widely-respected, extensively-used and comprehensive social science, because its practitioners, researchers and students have, no doubt unknowingly, always been using the hunter-gatherer environmental variability theory! In fact, as is demonstrated by the proposal in this website, hunter-gatherer environmental variability theory is central to all the social sciences, including economics.

Definition of economics

Economics is commonly defined as the description and scientific explanation of the choices made by individuals, groups and/or societies about the use of scarce resources primarily in order to achieve effectively and efficiently business and/or government objectives.

In the above definition, the scarce resources often refer to people, money and/or materials. Businesses’ objectives principally come from the need to supply efficiently goods and/or services at a profit. Governments’ main objectives generally come from the requirement to ensure the financing and organisation of:

• Defence from external threats
• The maintenance of internal order
• The affordable provision of suitable society infrastructure
• Suitably trained/educated employees for, among others, construction, education, healthcare, manufacturing and transport

The achievement of business and government objectives and the ensuing societal security and prosperity has historically proved to be problematic for many societies. Consequently, economists are also concerned with the description and scientific explanation of the short- and long-term societal choices with regard to people, money and materials which most contribute to the achievement of business and government objectives.

“… hunter-gatherers had to make extensive and effective use of the cost-benefit principle. Other economic concepts were also highly relevant to hunter-gatherer decision making, for example, among others, opportunity cost, sunk cost, marginal cost, risk and reward, division of labour and incentives.”

The hunter-gatherer economy

The principal, immediate objective of hunter-gatherers was a sufficient daily supply of fresh water and food. In order to meet this objective, a hunter-gatherer extended family, which was the living and working unit, had to have access to the following scarce resources:

• A sufficiently productive territory
• Experienced, trained and fit hunters and gatherers
• An adequate supply of tools, for example spears and baskets

Additionally, in order to cope, especially in times of scarcity, with the severe economic, social and societal challenges of intense, short-term environmental variability, hunter-gatherer societal values and organisation had to result in an effective and efficient extended family. Finally, notably in scarce environments, hunter-gatherers had to take decisions which maximised the effectiveness and efficiency of their daily search for food. These decisions were sometimes complex and difficult. As a general rule, their choices had to result in hunting and gathering which needed the least possible effort, while still obtaining a sufficient quantity of high-quality and other food. Thus, hunter-gathers had to evaluate carefully numerous variables with regard to each suggested hunting and gathering trip, for example:

• Resources in terms of suitable personnel and equipment, for example baskets and spears
• Possible quantity and accessibility of the potential prey/harvest at each location, especially with regard to seasonal foods
• Ease of reaching that location, for example the availability during the journey of clean water
• Distance in time and space to and from possible sites
• Threats from predators and other humans
• Other risks, for example of injury or adverse weather

From a consideration of these and other factors, an extended family had to apply its collective intelligence and experience to decide upon the next day’s most productive hunting and gathering opportunities.

In economic terms, hunter-gatherers had to make extensive and effective use of the cost-benefit principle. Other economic concepts were also highly relevant to hunter-gatherer decision making, for example, among others, opportunity cost, sunk cost, marginal cost, risk and reward, division of labour and incentives. These concepts were equally relevant to abundant and scarce hunter-gatherer environments, which explains their universal applicability.

“Hunting and gathering decisions were necessarily cost-benefit decisions. The total nutritional value of food which was hunted and/or gathered had to exceed the nutritional cost of obtaining that food, otherwise hunters and gatherers would have eventually starved.”

Cost-benefit principle

The cost-benefit principle, which, in fact, constitutes a hunter-gatherer deliberate behaviour pattern, is a fundamental decision-making technique in economics. In making, for example, a business decision about launching a new product, the use of the cost-benefit principle ensures that the total costs of the product launch are compared with its total forecast revenue. A profit will only be made from this product launch if the total revenue exceeds the total cost. Unprofitable product launches, where total costs exceed total revenue, will normally be rejected. Hunting and gathering decisions were necessarily cost-benefit decisions. The total nutritional value of food which was hunted and/or gathered had to exceed the nutritional cost of obtaining that food, otherwise hunters and gatherers would have eventually starved.

“Unlikely as it may seem to many, economics has become a widely-respected, extensively-used and comprehensive social science, because its practitioners, researchers and students have, no doubt unknowingly, always been using the hunter-gatherer environmental variability theory!”

The founding of the social science of economics

The economic decisions which faced a hunter-gatherer extended family were in many ways analogous to the economic decisions which have to be taken in a small family business, especially in the use of the cost-benefit principle. The social science of economics was largely established during the eighteenth century, particularly in Adam Smith's The Wealth of Nations, 1786. At this time, businesses were predominantly small family businesses, which supplied the business background to the development of economics.

Economists might well be forgiven for assuming that hunter-gatherer environmental variability theory had, and has, little relevance to their social science. However, in fact, hunter-gatherer environmental variability theory is central to all the social sciences, including economics. The classical economics of the eighteenth century was primarily based upon the cost-benefit principle, a principal hunter-gatherer deliberate behaviour pattern. Unlikely as it may seem to many, economics has become a widely-respected, extensively-used and comprehensive social science, because its practitioners, researchers and students have, no doubt unknowingly, always been using the hunter-gatherer environmental variability theory! Economics as a study of 'rational' economic behaviour is actually built upon the hunter-gatherer deliberate behaviour patterns which were inherent in a well-organised hunting and gathering extended family, especially the cost-benefit principle.

“Hunter-gatherer environmental variability theory now offers the opportunity to extend the social science of economics to the details of the economic behaviour which arise from ‘irrational’ motives.”

Conclusion

Hunter-gatherer environmental variability theory has much to offer economists. Present-day explanations of economists largely depend upon their assumption that economic behaviour will be ‘rational’, in other words the same economic behaviour as sensible and thoughtful hunter-gatherers. In the original context, ‘rational’ economic choices maximised the security of a hunter-gatherer extended family’s food supply, which economists have reformulated for the present-day as maximising an individual’s personal satisfaction (called utility) or, in terms of a business, its profits.

Much of present-day human deliberate behaviour is ‘irrational’ from the point of view of economists, because neither utility nor profit are maximised. The comprehensive understanding of humankind’s ‘irrational’ economic choices represents a significant challenge. Hunter-gatherer environmental variability theory now offers the opportunity to extend the social science of economics to the details of the economic behaviour which arise from ‘irrational’ motives.

Finally, in fairness to other social scientists, economists were fortunate in being able to base their discipline, in effect, upon hunter-gatherer deliberate behaviour patterns. Other social sciences were far less fortunate. Progress with regard to these social sciences was seriously impeded, because no one had any idea of the importance of environmental variability in understanding humankind.

 Copyright © 2026 Michael James Davies, All Rights Reserved

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