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 basis of this law Plato finds in the fact of the diversity of
natures, which fits men for different tasks.[158] In this he differs
from Adam Smith, who believes that the differences of natural talents in
men are much less than is generally supposed. Smith makes the propensity
to barter the source of specialization, which, in turn, is based on the
interdependence of men. He thus considers the diversities in human
nature to be the effect rather than the cause of the division of
labor.[159] Plato, however, is probably nearer the truth, since the very
reason for mutual interdependence is diversity of nature.[160]
The advantages of specialization, according to Plato,[161] are four, as
stated above. It enables one to accomplish more work with greater ease,
more skilfully, and at the proper season. The second and fourth of these
are not mentioned by Adam Smith, but he notes the resulting increase in
opulence for all the people, and the development of inventive genius. He
also observes that the division of labor causes the growth of capital,
and that this in turn increases specialization.[162] Of course Plato
could not appreciate the important fact of the influence of the division
of labor on the development of inventive genius, since he lived before
the age of machinery.
Plato is also a forerunner of Adam Smith in his recognition of the fact
that the division of labor depends for its advance upon a great increase
in the size and complexity of the state.[163] It means a multiplication
of trades, a development of industry,[164] the entrance of the retail
trader (κάπηλος),[165] and the invention of money as a means of
exchange.[166] The necessity of the division of labor between states is
also recognized. It is impossible to establish a city where it will not
be in need of imports (ἐπεισαγωγίμων). International trade therefore
arises, and with it are born the merchant (ἔμπορος) and the sailor
class, together with all those who are engaged in the labor of the
carrying trade.[167] Thus Plato, the idealist, and reputed enemy of
trade and industry, develops them directly out of the basal principle of
his _Republic_. He appreciates the necessity of a full-fledged industry
and commerce to the existence even of a primitive state, and his
hostility to them is actually directed only against what he terms their
unnatural use.[168] Moreover, in his opinion, one function of the
division of labor should be to limit them to the performance of their
proper tasks, and keep them from degenerating into mere money-making
devices. It should also result in limiting such vocations to the less
capable classes since the rulers should be artisans of freedom.[169]
Public-domain text, read in full here on John Shaqi.
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