A History of Greek Economic ThoughtTrever, Albert Augustus
History
A History of Greek Economic Thought
Trever, Albert Augustus
Economics -- Greece -- History; Thesis (Ph. D.)
Since Aristotle had a better apprehension of the theory of value than
other Greek thinkers, we may expect him also to define more clearly the
concept of wealth. In the _Politics_, he names the following attributes
of genuine (ἀληθινός) wealth (πλοῦτος): necessary to life; useful to
persons associated in a household or a state; capable of accumulation
(θησαυρισμός); limited in extent (οὐκ ἄπειρος).[543] According to
Mill,[544] from the “economic” standpoint, wealth is “all useful and
agreeable things” of a “material nature” possessing “exchange value”;
and, to have exchange value, they must be “capable of accumulation.”
In comparing these two definitions, it should be recognized at the
outset that Aristotle’s term “genuine” does not mean “truly economic,”
as it might in Mill, but rather “legitimate wealth” as distinguished
from that gained from false finance (χρηματιστική);[545] also that his
“necessary to life” and “limited in extent” are not used in the economic
but in the moral sense, as opposed to luxury and extreme interest in
money-making. Mill’s “all useful and agreeable things” presents a marked
contrast to this in spirit. Aristotle’s “useful” means “what subserves
the final good” (πρὸς ἀγαθὴν ζωήν), while Mill’s means “things that give
sensations of comfort or pleasure.” Thus Aristotle’s wealth is
necessarily limited, while Mill’s is unlimited, since, as Barker
observes, “only an infinity of wealth can satisfy an infinity of
need.”[546] It will be seen from the following discussion, however, that
Aristotle includes more than “necessary things” in his category of
economic wealth. He does not specify “material things,” as does Mill,
but it seems probable that this is his meaning.[547] In all the passages
where he enumerates the different kinds of wealth, only material things
are included, except slaves, who are counted as mere tools.[548] One of
these passages specifically excludes intellectual wealth by defining
property as a “separable instrument.”[549] The use of the term for value
(ἀξία) probably implies the same limitation.[550] Though Aristotle does
not mention exchange value specifically, it is clearly implied in his
definition. “Things useful for the association of a state” and things
“capable of accumulation” must have exchange value, thus excluding
illimitable utilities such as air and light.[551] His use of κτῆμα,
“possession,” and his recognition of cost of production and economic
demand as the main factors in determining value,[552] are further
evidence of this. Moreover, as seen above, in the _Ethics_, he clearly
makes exchange value an attribute of all wealth.[553]
Public-domain text, read in full here on John Shaqi.
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