A History of Greek Economic ThoughtTrever, Albert Augustus
History
A History of Greek Economic Thought
Trever, Albert Augustus
Economics -- Greece -- History; Thesis (Ph. D.)
In another passage, he repeats his definition of capital in different
terms. Goods are classified as for “purposes of production” or for “mere
enjoyment,”[598] but here again no theory of capital is developed. Yet
these two definitions are sufficient evidence that he advanced beyond
his predecessors in his apprehension of the meaning of the term.[599]
His division of production and finance, however, into the natural or
limited, which deals only with natural resources,[600] and the
unnatural, which is unlimited, and includes commerce, usury, and even
industry,[601] reveals a mind neither greatly interested in capital, nor
clear as to its true economic importance. His assertion in the
_Ethics_[602] that the prodigal (ἄσωτος) benefits many by his reckless
expenditures, and that parsimoniousness (ἀνελευθερία) is a worse evil
than prodigality also shows that he did not sufficiently emphasize the
importance to society of economy, the mother of stored capital. On this
point, Plato has the saner view,[603] and the extreme attitude of
Aristotle is certainly not characteristic of the Greeks in general.[604]
His failure to grasp the true theory of interest is a further evidence
of his superficial apprehension of the function of money capital. He
does not see, with Adam Smith, that money represents so much stored
capital, potentially productive, and that “since something can
everywhere be made by the use of money, something ought everywhere to be
paid for the use of it.”[605] In justice to him, however, it should be
observed that, though he failed to see the importance of unlimited
economic progress through constant increase in the capitalistic stock,
there is after all a sense in which he was right. There is a natural
limit to just acquisition, and it is especially with the individual in
relation to wealth that he is dealing. He is thus, with Plato, a
forerunner of the present tendency in economics, which is inclined to
set a limit to the amount that one can justly earn in a lifetime by his
own work.[606]
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