A History of Greek Economic ThoughtTrever, Albert Augustus
History
A History of Greek Economic Thought
Trever, Albert Augustus
Economics -- Greece -- History; Thesis (Ph. D.)
The general attitude of Plato toward economic production may be inferred
from his insistence upon the thorough application of the division of
labor for the perfection of industry.[120] He evidently recognized it as
the necessary basis of all higher life. We have seen above, also that
one of his chief objections to excessive wealth or poverty was the fact
that they caused inefficiency in production.
_Agriculture._—Of the three factors that enter into production—land,
labor, and capital—the most important in the mind of the Greek thinkers
was land. The relative prominence of agriculture was partly the cause of
this, but in the case of the philosophers, their ethical passion, their
idea of the necessity of leisure for personal development, and their
conservative attitude toward industry and commerce were the chief
motives that impelled them to urge their contemporaries back to the
simple life of the farm.[121] The aristocratic feeling, still strong in
European countries, that landed property is the most respectable,
probably also had some influence, though land was not so distinctively
in the hands of the upper classes in Attica.
Though the praise of agriculture was a characteristic feature of Greek
literature in all periods, it was not at first a conscious economic
theory.[122] Later, toward the end of the fifth century, it became a
definite ethico-economic doctrine of the philosophers, as a criticism of
their times, and as an appeal to what was deemed to be the more
healthful life of the earlier days.
Plato does not devote so much attention to this theme as do Xenophon and
Aristotle. His standpoint, however, is practically the same, though his
tendency toward the physiocratic error is not so marked. In his second
state, he orders that agriculture shall be the only means of
money-making,[123] and he even strikes the modern note of conservation,
in his directions for the care of land, waters, springs, and
forests.[124] On this point, he and the other Greek thinkers accord well
with the economy of the past decade with its urgent preachment, “Back to
the land,” though the modern watchword has, of course, a more economic
emphasis.
_Capital._—Though the function of capital, aside from natural resources,
was a familiar fact in the Athenian life of the fifth and fourth
centuries B.C.,[125] there is scarcely any consideration of it by the
theorists before Aristotle. Plato has no definition of capital, nor
indeed scarcely any recognition of the fact of its existence.[126] His
emphasis on the virtue of economy, however, and his criticism of those
who spend the “stored wealth,” imply the idea that wealth should be used
not merely for enjoyment, but also for productive purposes.[127] His
strictures upon interest show that he has but slight appreciation of the
productive function of money-capital.[128]
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