In order to give clearness to his conception of the State, Plato
proceeds to trace the first principles of mutual need and of division
of labour in an imaginary community of four or five citizens. Gradually
this community increases; the division of labour extends to countries;
imports necessitate exports; a medium of exchange is required, and
retailers sit in the market-place to save the time of the producers.
These are the steps by which Plato constructs the first or primitive
State, introducing the elements of political economy by the way. As he
is going to frame a second or civilized State, the simple naturally
comes before the complex. He indulges, like Rousseau, in a picture of
primitive life—an idea which has indeed often had a powerful influence
on the imagination of mankind, but he does not seriously mean to say
that one is better than the other (Politicus); nor can any inference be
drawn from the description of the first state taken apart from the
second, such as Aristotle appears to draw in the Politics. We should
not interpret a Platonic dialogue any more than a poem or a parable in
too literal or matter-of-fact a style. On the other hand, when we
compare the lively fancy of Plato with the dried-up abstractions of
modern treatises on philosophy, we are compelled to say with
Protagoras, that the ‘mythus is more interesting’ (Protag.)
Several interesting remarks which in modern times would have a place in
a treatise on Political Economy are scattered up and down the writings
of Plato: especially Laws, Population; Free Trade; Adulteration; Wills
and Bequests; Begging; Eryxias, (though not Plato’s), Value and Demand;
Republic, Division of Labour. The last subject, and also the origin of
Retail Trade, is treated with admirable lucidity in the second book of
the Republic. But Plato never combined his economic ideas into a
system, and never seems to have recognized that Trade is one of the
great motive powers of the State and of the world. He would make retail
traders only of the inferior sort of citizens (Rep., Laws), though he
remarks, quaintly enough (Laws), that ‘if only the best men and the
best women everywhere were compelled to keep taverns for a time or to
carry on retail trade, etc., then we should knew how pleasant and
agreeable all these things are.’