Hebrew, Greek, and Roman Thought: An Overview
Hebrew, Greek and
Hebrew, Greek and
Roman Thought
Roman Thought
The Hebrew Thought
The Hebrew Thought
Hebrew civilization dates back to 2500 B.c.
Hebrew civilization dates back to 2500 B.c.
Main sources of information about this period are from writings of the Hebrew
Main sources of information about this period are from writings of the Hebrew
prophets in which they had laid down the codes of conduct and the old Testament
prophets in which they had laid down the codes of conduct and the old Testament
Characteristics:
Characteristics:
i)
economic, political, ethical and philosophical ideas were intertwined
economic, political, ethical and philosophical ideas were intertwined
ii)
Ethicon-religious ideas were not conducive for economic progress because they
Ethicon-religious ideas were not conducive for economic progress because they
looked down on industry (except agriculture), lack of individualism and
looked down on industry (except agriculture), lack of individualism and
materialism
materialism
iii)
They wanted to maintain social equilibrium but there was no active ‘social
They wanted to maintain social equilibrium but there was no active ‘social
planning’
planning’
Some important economic ideas of the
Some important economic ideas of the
Hebrews
Hebrews
Usury (interest):
Usury (interest):
Hebrew prophets condemned usury. Mosaic law prohibited
Hebrew prophets condemned usury. Mosaic law prohibited
‘usury of money, usury of victuals, usury of anything that is lent upon usury’
‘usury of money, usury of victuals, usury of anything that is lent upon usury’
Lending on interest to strangers was allowed
Lending on interest to strangers was allowed
Hebrews were asked to show mercy in case of loans granted to poor
Hebrews were asked to show mercy in case of loans granted to poor
Their thought on interest is similar to the ancient Indian thought on interest.
Their thought on interest is similar to the ancient Indian thought on interest.
Commerce and Just Price
Commerce and Just Price
Hebrew prophets set laws against false weights and measures and adulteration of
Hebrew prophets set laws against false weights and measures and adulteration of
articles of consumption
articles of consumption
Legislation to curb monopolistic tendencies and speculations
Legislation to curb monopolistic tendencies and speculations
Middleman had no place in business
Middleman had no place in business
Export of essential food items was forbidden
Export of essential food items was forbidden
Hoarding was not permitted
Hoarding was not permitted
Ceiling on profit margin
Ceiling on profit margin
‘just price’ concept was developed in its primitive form
‘just price’ concept was developed in its primitive form
Labor
Labor
Realized the dignity of labor
Realized the dignity of labor
Pride place was given to agriculture labor
Pride place was given to agriculture labor
Payments were made in-kind
Payments were made in-kind
Laws to safeguard interest of workers
Laws to safeguard interest of workers
Agriculture and Industry
Agriculture and Industry
Rural and agrarian society
Rural and agrarian society
Agriculture was the main occupation and they held it in high esteem
Agriculture was the main occupation and they held it in high esteem
Maxim: ‘although trading gives greater profits, these may all be lost in a moment;
Maxim: ‘although trading gives greater profits, these may all be lost in a moment;
therefore, never hesitate to buy land’
therefore, never hesitate to buy land’
Agriculture basis of national life, commerce and craft were not held in esteem by
Agriculture basis of national life, commerce and craft were not held in esteem by
the Jews
the Jews
Money
Money
Hebrews understood functions of money
Hebrews understood functions of money
Money was used in society described in old Testament
Money was used in society described in old Testament
Money used mainly in the form of bullion, ingots, or rings
Money used mainly in the form of bullion, ingots, or rings
No stamped money
No stamped money
Stamping of coins started in 700 B.c.
Stamping of coins started in 700 B.c.
Seventh Year
Seventh Year
Hebrews left land fallow after titling it for six years to conserve the fertility of the
Hebrews left land fallow after titling it for six years to conserve the fertility of the
soil
soil
Slaves freed after six years of service
Slaves freed after six years of service
All debts to be cancelled
All debts to be cancelled
Jubilee Year
Jubilee Year
This was the 50
This was the 50
th
th
year
year
Land returned to original owner 50 years later
Land returned to original owner 50 years later
Land was the main form of wealth in those days
Land was the main form of wealth in those days
To avoid concentration of wealth
To avoid concentration of wealth
This was to prevent inequality in the wealth, to preserve family and tribal property,
This was to prevent inequality in the wealth, to preserve family and tribal property,
and to keep people attached to their country
and to keep people attached to their country
Greek Thought
Greek Thought
Roman law and Christian religion form the basis of European culture
Roman law and Christian religion form the basis of European culture
Henry Maine – ‘except for the blind forces of nature, nothing moves in this world
Henry Maine – ‘except for the blind forces of nature, nothing moves in this world
which is not Greek in its origin’
which is not Greek in its origin’
8
8
th
th
century BC in Greece – high degree of division of labor and trade
century BC in Greece – high degree of division of labor and trade
Use of money was also established
Use of money was also established
Society was divided into classes and ruled by landed aristocracy
Society was divided into classes and ruled by landed aristocracy
Slavery was an accepted part of social life
Slavery was an accepted part of social life
Word economics is of Greek origin and it means ‘management of the household’
Word economics is of Greek origin and it means ‘management of the household’
Plato (427-347 BC)
Plato (427-347 BC)
He belonged to the city-state of Athens
He belonged to the city-state of Athens
Centre of democracy and individualism
Centre of democracy and individualism
A new commercial class was coming up in power
A new commercial class was coming up in power
Plato’s dislike of Athenian democracy may be regarded as a spiritual revolt of a
Plato’s dislike of Athenian democracy may be regarded as a spiritual revolt of a
philosopher against extreme commercialism
philosopher against extreme commercialism
Main contribution – division of labor and origin of city-state
Main contribution – division of labor and origin of city-state
He was the first to offer a systematic explanation of the principles of society and
He was the first to offer a systematic explanation of the principles of society and
of the origin of the city-state
of the origin of the city-state
Origin of city-state and division of labor
Origin of city-state and division of labor
‘
A state arises out of the need of mankind. No one is self-sufficing but all of us
A state arises out of the need of mankind. No one is self-sufficing but all of us
have many wants’
have many wants’
City arises because of the division of labor
City arises because of the division of labor
‘division of labor emerged from the natural inequalities of human beings’
‘division of labor emerged from the natural inequalities of human beings’
‘diversities of nature among us which are adapted to different occupations’
‘diversities of nature among us which are adapted to different occupations’
‘all things are produced more plentifully and easily, and of better quality, when
‘all things are produced more plentifully and easily, and of better quality, when
one man does one thing which is natural to him and does it at the right time, and
one man does one thing which is natural to him and does it at the right time, and
leaves other things’
leaves other things’
Two thousand years later, Adam Smith used the same concept
Two thousand years later, Adam Smith used the same concept
Division of Labor – Plato vs. Adam
Division of Labor – Plato vs. Adam
Smith
Smith
Plato – division of labor is the basis for social organization, city-state is built upon
Plato – division of labor is the basis for social organization, city-state is built upon
division of labor
division of labor
Adam smith – division of labor is the advice for ultimate advantage
Adam smith – division of labor is the advice for ultimate advantage
Plato – inequalities in human beings result in specialization
Plato – inequalities in human beings result in specialization
Adam smith – specialization results in improvement in productivity
Adam smith – specialization results in improvement in productivity
Smith – causes of wealth
Smith – causes of wealth
Plato – structure of society
Plato – structure of society
Ideal State
Ideal State
City-state – with a constant number of citizens (5040 – administratively
City-state – with a constant number of citizens (5040 – administratively
convenient since it is divisible by all numbers upto 10)
convenient since it is divisible by all numbers upto 10)
Wealth should also be stationary
Wealth should also be stationary
Ruler to be free from any motive of economic exploitation and he will accept
Ruler to be free from any motive of economic exploitation and he will accept
rigorous standards of code of conduct
rigorous standards of code of conduct
Two classes – rulers and ruled
Two classes – rulers and ruled
Rulers divided into guardians and auxiliaries (latter ruled artisans)
Rulers divided into guardians and auxiliaries (latter ruled artisans)
Artisans engaged in menial occupations of production and exchange of wealth
Artisans engaged in menial occupations of production and exchange of wealth
(they lack ability to run for government)
(they lack ability to run for government)
Ideal State
Ideal State
Members of the ruling class will be set apart from early childhood carefully
Members of the ruling class will be set apart from early childhood carefully
educated in philosophy and arts of war. At age 30, they will have to pass an
educated in philosophy and arts of war. At age 30, they will have to pass an
examination. (those who pass will become the ‘philosopher kings’. Those who
examination. (those who pass will become the ‘philosopher kings’. Those who
don’t pass become soldiers
don’t pass become soldiers
Plato believed in rule by elite and they must lead a communist way of life (cannot
Plato believed in rule by elite and they must lead a communist way of life (cannot
own property, must not acquire homes or lands)
own property, must not acquire homes or lands)
Live together and share common meals, share women
Live together and share common meals, share women
Rulers cannot own property so that they do not become corrupt
Rulers cannot own property so that they do not become corrupt
Plato recommends communism only for upper sections, others can own property
Plato recommends communism only for upper sections, others can own property
Money, Interest and Trade
Money, Interest and Trade
Focused on medium of exchange function of money
Focused on medium of exchange function of money
No gold and silver, only token money. So value of money is independent of the
No gold and silver, only token money. So value of money is independent of the
material it is made of.
material it is made of.
Foreign trade was controlled – only necessities to be imported and only good not
Foreign trade was controlled – only necessities to be imported and only good not
necessary to be exported
necessary to be exported
Retail trade forbidden and money should not be lent on interest
Retail trade forbidden and money should not be lent on interest
Did not question the institution of slavery
Did not question the institution of slavery
He was a man of peace, hated war. His ideal state was Utopia
He was a man of peace, hated war. His ideal state was Utopia
Plato was the first thinker to make an economic interpretation of history
Plato was the first thinker to make an economic interpretation of history
ARISTOTLE (384-322 B.C)
He was an analytical economist. He was pupil of Plato and Tutor of
Alexander.
But he is different from Plato.
•
The state
: state like a family and the village
•Man is by nature is a political animal.
•
The state is possible because all man live together in a society.
•The aim of state is
promotion of good life
•His ideal state was different from Plato.
•Plato advocate communism
•Aristotle attacks the communism.
Aristotle's main contributions to economic thinking concerned the
exchange of commodities and the use of money in this exchange.
People's
needs, he said, are moderate
, but people's
desires are
limitless
.
Hence the
production of commodities to satisfy needs
was right and
natural.
whereas the
production of goods in an attempt to satisfy unlimited
desires
was unnatural.
Aristotle accepted that when
goods are produced to be sold in a market
,
it can be difficult to determine if this activity is
satisfying needs or
inordinate desires.
but he assumed that if a market exchange is in the
form of barter
, it is
made to
satisfy natural needs
and no economic gain is intended.
Using the medium of money, however, suggests that the objective of the
exchange is monetary gain
, which Aristotle
condemned.
One of the interesting points Aristotle made is that the problem of
scarcity can be addressed by reducing consumption
, by changing
human attitudes. This is a powerful idea for the various Utopians and
socialists who hope to end societal conflicts by eliminating the
conflicts that are inherent in scarcity.
Economic Ideas of Aristotle
Aristotle was in the favor of
family
and
private property
.
•He recognized the justification of
slavery
.
•There was rulers and ruled, The ruler consist of military class, statesman, magistrates
and priests.
•
Private property: Private
property is superior on five ground.
1.Progress
2.Peace
3.Pleasure
4.Practice
5.Philanthropy
Aristotle and Private Property
Aristotle and Private Property
Aristotle outlined the common characteristics of private property
that solidified his support:
1.
Private property is more productive and leads to progress.
2.
Conflict is inherent in communal property management.
3.
Private property is intrinsic to man’s nature. The love of self,
money, and property is tied to natural love of exclusive
ownership.
4.
Private property has existed always and everywhere.
5.
Only private property allows for opportunity for moral action;
to practice virtues of benevolence and philanthropy.
Private property
He argue that community property will not be looked as carefully as
private property.
•Private Property Is superior on five grounds.
i. Progress
:
•Private Property is more productive. Goods hold by large number of
people receive little care.
•Property should be in
certain sense common
, but as
general rule
private for everyone
.
ii. Peace:
•Communal property does not give social peace. Quarrels are bound
to develop, when the principle of “equal wages for work” does not
follow.
It may possible that someone getting less wage but doing more effort.
iii. Practice:
The practical experience proves that private property is a good thing.
The institution of communal property is not workable.
iv. Pleasure:
Private property will give pleasure to owner.
Philanthropy
:
The private property promote
good-will among citizen.
Aristotle was against the imposition of ceiling on private property
He would plead for
checking the growth of population.
If population is not check, then it leads to
poverty
which is the main
reason of crime.
He suggest that the
private property
should be
combined with common
use
, at least among friends.
SLAVERY
Aristotle view on slavery are similar to those Plato.
•Aristotle justify the slavery by saying that some
people were slaves by nature
.
•He regarded slavery as natural phenomenon.
•But in his own days some slaves were
slaves not by nature but by law
.
The
economic idea
of Aristotle were as under.
a)The scope of economics
:
The world economics is a Greek origin and literally means “
management of
household
”
b)According to Aristotle
Economy is divided into two parts.
1.Economy Proper:
The Management Of Household
2.The Science Of Supply:
It Is Concern With Art Of Acquisition
The
Economy Proper
Deals With
The Development Of City State From The Village & The Household.
The
Science Of Supply
Deals With
The Needs Of The Household Are Met.
The Analysis Of Exchange
Aristotle speaks two forms of exchange ;
one natural
and other
unnatural.
The
natural
form of exchange is merely an extension of the management
of household and meant for s
atisfaction of men's natural wants.
The unnatural form of exchange aims at
monetary gains
While discussing this problem, Aristotle speaks two kinds of uses one is
proper use and the other is improper use
The
proper use
is
satisfaction of natural wants
.
The
improper
use occur when goods are
exchanges
for monetary use.
E.g.
shoes is use for wear, and for exchange as well
.
So he said foundations of two economic concepts
Value in use
Value is exchange
He has given the some ideas of labor, cost theory, but he was not
able to state explicitly.
He also give the concept of justice in prices.
“An exchange is just when each gets exactly as much as gives the
other
”
MONOPOLY
Aristotle define monopoly as “
The position in a market of a single
seller”
. He condemn it as unjust
.
He explain “what money is” and “what money does”. Aristotle Explain
the one
function of money, i.e.; medium of exchange.
Aristotle explain
the other function of money (store of value and measure of value) as well.
Aristotle advocate a
non-communist society
. Naturally a society where
exchange of goods and services take place. First there would be barriers,
but because of double coincidence of wants,
there is need of some
commodity as a medium of exchange.
Metals like iron and silver are good for this purpose.
In the beginning , money was defined simply by size and weight.
Aristotle anticipate “ Knapp, state Theory of money” which tells that
money is a creature of law.
Aristotle was also aware of
difference between money and wealth.
The Theory of Money
Interest
Aristotle condemn interest.
Money was only a medium of exchange .It has no business to
increase from hand to hand.
Interest is unjust.
At the time of Aristotle ,
Money barrowed by the poorer class , for
consumption purpose.
The modern Theory of interest based on productive investment. He
was the first analytical economist.
THE ROMAN THOUGHT
Roman did not contribute much to the development of economic
thought.
Their ideas were
borrowed from Greek
They were
Empire builders
.
Rome was a city-state with
agriculture as
the base of its economy.
Rome are greatly
influenced by the Greeks.
The war results serious economic dislocation
The
rich become richer and poor become poorer.
DIFFERENCES BETWEEN ROMANS
AND GREEKS
The Romans were particularly
interested in power
, and much less
interested in balance than the Greeks. There was one big difference.
The Romans built up a
vast empire
: the Greeks didn’t, except for
the brief moment of Alexander’s conquests, which soon
disintegrated.
The
Romans
were confident in their
own organizational power,
their military and administrative capabilities.
The
Greeks
enjoyed an artistic and
intellectual inheritance. But
the
Romans
respected this inheritance.
Latin Literature and Architecture
The native language of the Romans was
Latin
The Romans produced many works of poetry, comedy, tragedy,
history
The Architecture of Ancient Rome adopted the external Greek
architecture for their own purposes, which were so different from
Greek buildings.
Social elements such as wealth and high population densities in
cities forced the ancient
Romans to discover new (architectural)
solutions
of their own.
ROMANS AND ECONOMICS
During the time of decline of Roman empire, few of Roman give
attention on Economic question.
The economic topic; in Rome were discussed by Their
Philosophers.
The Roman regarded
agriculture as most profitable,
respectful and
delightful occupation.
They dislike luxury and believed on
simplicity of life.
The Roman Philosopher regarded
money lending as big a crime as
murder.
ROMANS [SENECA]
Seneca
, a Roman, Philosopher, believe
money as the root of most
evils,
but he has pointed how trade between nations take place , out
of
comparative advantage.
The agriculture writers have discussed
the
problem of employment of slave labor
on farm, the size of
holding, and so on. Rome are in
favors of small frames
. The
attribute
large farm , as inefficient
. They regard
slave labor as
inefficient
, and uneconomical when
applied on land
.
Slaves did
not get kind treatment , when they became too old they were
sold.
ROMANS LAW
The Roman law plays an important role in the history of economic
analysis. Roman
judges were laymen
, and they have to be told what
the law was. The Roman had two sets of laws.1.
The civil law
: (Jus
civile) applied on the
affairs of citizens.
2.
Jus Gentium
: referred
to the body of laws that were applicable to
commercial and other
relations between foreigners
, or between citizen and foreigners.
The Roman
law
based on the fact with the institutions of
private
property and contract
.
The Roman law has also provided the definitions of the
concept of
price , money , purchase
and sale various kind of loans
Their
historical mission was military and political
.
Hebrew civilization, with its roots dating back to 2500 B.C., intertwines various economic, political, ethical, and philosophical ideas. The Hebrews held unique beliefs on topics such as usury, commerce, labor, agriculture, and money, which shaped their societal structure and values.
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Hebrew, Greek and Roman Thought
The Hebrew Thought Hebrew civilization dates back to 2500 B.c. Main sources of information about this period are from writings of the Hebrew prophets in which they had laid down the codes of conduct and the old Testament Characteristics: economic, political, ethical and philosophical ideas were intertwined i) Ethicon-religious ideas were not conducive for economic progress because they looked down on industry (except agriculture), lack of individualism and materialism ii) They wanted to maintain social equilibrium but there was no active social planning iii)
Some important economic ideas of the Hebrews Usury (interest): Hebrew prophets condemned usury. Mosaic law prohibited usury of money, usury of victuals, usury of anything that is lent upon usury Lending on interest to strangers was allowed Hebrews were asked to show mercy in case of loans granted to poor Their thought on interest is similar to the ancient Indian thought on interest.
Commerce and Just Price Hebrew prophets set laws against false weights and measures and adulteration of articles of consumption Legislation to curb monopolistic tendencies and speculations Middleman had no place in business Export of essential food items was forbidden Hoarding was not permitted Ceiling on profit margin just price concept was developed in its primitive form
Labor Realized the dignity of labor Pride place was given to agriculture labor Payments were made in-kind Laws to safeguard interest of workers
Agriculture and Industry Rural and agrarian society Agriculture was the main occupation and they held it in high esteem Maxim: although trading gives greater profits, these may all be lost in a moment; therefore, never hesitate to buy land Agriculture basis of national life, commerce and craft were not held in esteem by the Jews
Money Hebrews understood functions of money Money was used in society described in old Testament Money used mainly in the form of bullion, ingots, or rings No stamped money Stamping of coins started in 700 B.c.
Seventh Year Hebrews left land fallow after titling it for six years to conserve the fertility of the soil Slaves freed after six years of service All debts to be cancelled
Jubilee Year This was the 50thyear Land returned to original owner 50 years later Land was the main form of wealth in those days To avoid concentration of wealth This was to prevent inequality in the wealth, to preserve family and tribal property, and to keep people attached to their country
Greek Thought Roman law and Christian religion form the basis of European culture Henry Maine except for the blind forces of nature, nothing moves in this world which is not Greek in its origin 8thcentury BC in Greece high degree of division of labor and trade Use of money was also established Society was divided into classes and ruled by landed aristocracy Slavery was an accepted part of social life Word economics is of Greek origin and it means management of the household
Plato (427-347 BC) He belonged to the city-state ofAthens Centre of democracy and individualism Anew commercial class was coming up in power Plato s dislike of Athenian democracy may be regarded as a spiritual revolt of a philosopher against extreme commercialism Main contribution division of labor and origin of city-state He was the first to offer a systematic explanation of the principles of society and of the origin of the city-state
Origin of city-state and division of labor A state arises out of the need of mankind. No one is self-sufficing but all of us have many wants City arises because of the division of labor division of labor emerged from the natural inequalities of human beings diversities of nature among us which are adapted to different occupations all things are produced more plentifully and easily, and of better quality, when one man does one thing which is natural to him and does it at the right time, and leaves other things Two thousand years later, Adam Smith used the same concept
Division of Labor Plato vs. Adam Smith Plato division of labor is the basis for social organization, city-state is built upon division of labor Adam smith division of labor is the advice for ultimate advantage Plato inequalities in human beings result in specialization Adam smith specialization results in improvement in productivity Smith causes of wealth Plato structure of society
Ideal State City-state with a constant number of citizens (5040 administratively convenient since it is divisible by all numbers upto 10) Wealth should also be stationary Ruler to be free from any motive of economic exploitation and he will accept rigorous standards of code of conduct Two classes rulers and ruled Rulers divided into guardians and auxiliaries (latter ruled artisans) Artisans engaged in menial occupations of production and exchange of wealth (they lack ability to run for government)
Ideal State Members of the ruling class will be set apart from early childhood carefully educated in philosophy and arts of war. At age 30, they will have to pass an examination. (those who pass will become the philosopher kings . Those who don t pass become soldiers Plato believed in rule by elite and they must lead a communist way of life (cannot own property, must not acquire homes or lands) Live together and share common meals, share women Rulers cannot own property so that they do not become corrupt Plato recommends communism only for upper sections, others can own property
Money, Interest and Trade Focused on medium of exchange function of money No gold and silver, only token money. So value of money is independent of the material it is made of. Foreign trade was controlled only necessities to be imported and only good not necessary to be exported Retail trade forbidden and money should not be lent on interest Did not question the institution of slavery He was a man of peace, hated war. His ideal state was Utopia Plato was the first thinker to make an economic interpretation of history
ARISTOTLE (384-322 B.C) He was an analytical economist. He was pupil of Plato and Tutor of Alexander. But he is different from Plato. The state: state like a family and the village Man is by nature is a political animal. The state is possible because all man live together in a society. The aim of state is promotion of good life His ideal state was different from Plato. Plato advocate communism Aristotle attacks the communism.
Aristotle's main contributions to economic thinking concerned the exchange of commodities and the use of money in this exchange. People's needs, he said, are moderate, but people's desires are limitless. Hence the production of commodities to satisfy needs was right and natural. whereas the production of goods in an attempt to satisfy unlimited desires was unnatural.
Economic Ideas of Aristotle Aristotle accepted that when goods are produced to be sold in a market, it can be difficult to determine if this activity is satisfying needs or inordinate desires. but he assumed that if a market exchange is in the form of barter, it is made to satisfy natural needs and no economic gain is intended. Using the medium of money, however, suggests that the objective of the exchange is monetary gain, which Aristotle condemned. One of the interesting points Aristotle made is that the problem of scarcity can be addressed by reducing consumption, by changing human attitudes. This is a powerful idea for the various Utopians and socialists who hope to end societal conflicts by eliminating the conflicts that are inherent in scarcity.
Aristotle and Private Property Aristotle was in the favor of family and private property. He recognized the justification of slavery. There was rulers and ruled, The ruler consist of military class, statesman, magistrates and priests. Private property: Private property is superior on five ground. 1.Progress 2.Peace 3.Pleasure 4.Practice 5.Philanthropy
Aristotle and Private Property Aristotle outlined the common characteristics of private property that solidified his support: 1. Private property is more productive and leads to progress. 2. Conflict is inherent in communal property management. 3. Private property is intrinsic to man s nature. The love of self, money, and property is tied to natural love of exclusive ownership. 4. Private property has existed always and everywhere. 5. Only private property allows for opportunity for moral action; to practice virtues of benevolence and philanthropy.
Private property He argue that community property will not be looked as carefully as private property. Private Property Is superior on five grounds. i. Progress: Private Property is more productive. Goods hold by large number of people receive little care. Property should be in certain sense common , but as general rule private for everyone. ii. Peace: Communal property does not give social peace. Quarrels are bound to develop, when the principle of equal wages for work does not follow.
It may possible that someone getting less wage but doing more effort. iii. Practice: The practical experience proves that private property is a good thing. The institution of communal property is not workable. iv. Pleasure: Private property will give pleasure to owner. Philanthropy: The private property promote good-will among citizen. Aristotle was against the imposition of ceiling on private property He would plead for checking the growth of population. If population is not check, then it leads to poverty which is the main reason of crime. He suggest that the private property should be combined with common use, at least among friends.
SLAVERY Aristotle view on slavery are similar to those Plato. Aristotle justify the slavery by saying that some people were slaves by nature. He regarded slavery as natural phenomenon. But in his own days some slaves were slaves not by nature but by law. The economic idea of Aristotle were as under. a)The scope of economics: The world economics is a Greek origin and literally means management of household b)According to Aristotle Economy is divided into two parts. 1.Economy Proper: The Management Of Household 2.The Science Of Supply: It Is Concern With Art Of Acquisition The Economy Proper Deals With The Development Of City State From The Village & The Household. The Science Of Supply Deals With The Needs Of The Household Are Met.
The Analysis Of Exchange Aristotle speaks two forms of exchange ; one natural and other unnatural. The natural form of exchange is merely an extension of the management of household and meant for satisfaction of men's natural wants. The unnatural form of exchange aims at monetary gains While discussing this problem, Aristotle speaks two kinds of uses one is proper use and the other is improper use The proper use is satisfaction of natural wants. The improper use occur when goods are exchanges for monetary use. E.g. shoes is use for wear, and for exchange as well.
So he said foundations of two economic concepts Value in use Value is exchange He has given the some ideas of labor, cost theory, but he was not able to state explicitly. He also give the concept of justice in prices. An exchange is just when each gets exactly as much as gives the other MONOPOLY Aristotle define monopoly as The position in a market of a single seller . He condemn it as unjust.
The Theory of Money He explain what money is and what money does . Aristotle Explain the one function of money, i.e.; medium of exchange. Aristotle explain the other function of money (store of value and measure of value) as well. Aristotle advocate a non-communist society. Naturally a society where exchange of goods and services take place. First there would be barriers, but because of double coincidence of wants, there is need of some commodity as a medium of exchange. Metals like iron and silver are good for this purpose. In the beginning , money was defined simply by size and weight. Aristotle anticipate Knapp, state Theory of money which tells that money is a creature of law. Aristotle was also aware of difference between money and wealth.
Interest Aristotle condemn interest. Money was only a medium of exchange .It has no business to increase from hand to hand. Interest is unjust. At the time of Aristotle , Money barrowed by the poorer class , for consumption purpose. The modern Theory of interest based on productive investment. He was the first analytical economist.
THE ROMAN THOUGHT Roman did not contribute much to the development of economic thought. Their ideas were borrowed from Greek They were Empire builders. Rome was a city-state with agriculture as the base of its economy. Rome are greatly influenced by the Greeks. The war results serious economic dislocation The rich become richer and poor become poorer.
DIFFERENCES BETWEEN ROMANS AND GREEKS The Romans were particularly interested in power, and much less interested in balance than the Greeks. There was one big difference. The Romans built up a vast empire: the Greeks didn t, except for the brief moment of Alexander s conquests, which soon disintegrated. The Romans were confident in their own organizational power, their military and administrative capabilities. The Greeks enjoyed an artistic and intellectual inheritance. But the Romans respected this inheritance.
Latin Literature and Architecture The native language of the Romans was Latin The Romans produced many works of poetry, comedy, tragedy, history The Architecture of Ancient Rome adopted the external Greek architecture for their own purposes, which were so different from Greek buildings. Social elements such as wealth and high population densities in cities forced the ancient Romans to discover new (architectural) solutions of their own.
ROMANS AND ECONOMICS During the time of decline of Roman empire, few of Roman give attention on Economic question. The economic topic; in Rome were discussed by Their Philosophers. The Roman regarded agriculture as most profitable, respectful and delightful occupation. They dislike luxury and believed on simplicity of life. The Roman Philosopher regarded money lending as big a crime as murder.
ROMANS [SENECA] Seneca, a Roman, Philosopher, believe money as the root of most evils, but he has pointed how trade between nations take place , out of comparative advantage. The agriculture writers have discussed the problem of employment of slave labor on farm, the size of holding, and so on. Rome are in favors of small frames. The attribute large farm , as inefficient. They regard slave labor as inefficient , and uneconomical when applied on land. Slaves did not get kind treatment , when they became too old they were sold.
ROMANS LAW The Roman law plays an important role in the history of economic analysis. Roman judges were laymen, and they have to be told what the law was. The Roman had two sets of laws.1. The civil law: (Jus civile) applied on the affairs of citizens.2. Jus Gentium: referred to the body of laws that were applicable to commercial and other relations between foreigners, or between citizen and foreigners. The Roman law based on the fact with the institutions of private property and contract. The Roman law has also provided the definitions of the concept of price , money , purchase and sale various kind of loans Their historical mission was military and political.
