I. Economic System

Incan economics and politics were based on Andean traditions. In order to financially support the empire, the Incas developed a somewhat Socialistic system of labor taxation. Without any form of currency, they limited the role of markets and carried out the exchange of many of their products through political channels. Gifts and favors comprised economic transactions, and the social and political positions of the people involved in these transactions often determined the value of the goods and services. Leaders used this form of bribery to maintain their power, providing gifts of luxury goods and elaborate entertainment to their supporters. The people reciprocated by providing their leaders with labor, although inevitably the administration forced them into the position nonetheless.

II. Labor Taxation

The Incas held a regular census of the male population in order to assess the necessity of labor conscription. On a rotating basis citizens, including children, were required to serve in various labor capacities, whether it be farming, construction, or in the home. Two-thirds of a farmer's crops (over 20 varieties of corn and 240 varieties of potatoes) were given to the government. Such labor provided the Inca state with its "tax" revenues. However, in exchange for labor, the government provided for them in the way of shelter, food, and clothing. One unique incentive was the free distribution of ceremonial beer. The Inca bureaucracy utilized a certain open area within the city’s center as a social focus where the citizens could gather to celebrate and drink ceremonial beer.

III. Quipu: System of Record Keeping

Although the Incas had no form of writing, they developed a system of record-keeping through knotted string known as "quipu". These knot systems utilized complex knot arrangements and color-coded regions to represent the decimal system. They used these cords to keep an accurate account of their stored goods, the available workforce, and important items like maize, from which they made ceremonial beer. Every economic aspect of the vast empire was adequately managed by the "quipu." The people who kept the records were called "quipucamayocs," almost the equivalent of Incan accountants.