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    The Ancient School of Economic Thought

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    Amogh Sahu
    The Ancient School of Economic Thought focused on economies in ancient Sumer, Persia, and Greece. The Greek economy was decentralized and had a currency system. Land ownership was important, and prices were often set rather than fluctuating based on supply and demand. Greek thinkers like Hesiod, Plato, and Aristotle emphasized collective interests and morality over individual profit. Plato's model in The Republic proposed a totalitarian planned economy run by philosopher kings. Aristotle discussed markets and the concept of distributive justice. Overall, ancient Greek economic philosophy stressed central planning, social order, and anti-individualism rather than free markets.

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    The Ancient School of Economic Thought

    Uploaded by

    Amogh Sahu
    130 views23 pages
    The Ancient School of Economic Thought focused on economies in ancient Sumer, Persia, and Greece. The Greek economy was decentralized and had a currency system. Land ownership was important, and prices were often set rather than fluctuating based on supply and demand. Greek thinkers like Hesiod, Plato, and Aristotle emphasized collective interests and morality over individual profit. Plato's model in The Republic proposed a totalitarian planned economy run by philosopher kings. Aristotle discussed markets and the concept of distributive justice. Overall, ancient Greek economic philosophy stressed central planning, social order, and anti-individualism rather than free markets.

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    The Ancient School of Economic Thought focused on economies in ancient Sumer, Persia, and Greece. The Greek economy was decentralized and had a currency system. Land ownership was important, and prices were often set rather than fluctuating based on supply and demand. Greek thinkers like Hesiod, Plato, and Aristotle emphasized collective interests and morality over individual profit. Plato's model in The Republic proposed a totalitarian planned economy run by philosopher kings. Aristotle discussed markets and the concept of distributive justice. Overall, ancient Greek economic philosophy stressed central planning, social order, and anti-individualism rather than free markets.

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    130 views23 pages

    The Ancient School of Economic Thought

    Uploaded by

    Amogh Sahu
    The Ancient School of Economic Thought focused on economies in ancient Sumer, Persia, and Greece. The Greek economy was decentralized and had a currency system. Land ownership was important, and prices were often set rather than fluctuating based on supply and demand. Greek thinkers like Hesiod, Plato, and Aristotle emphasized collective interests and morality over individual profit. Plato's model in The Republic proposed a totalitarian planned economy run by philosopher kings. Aristotle discussed markets and the concept of distributive justice. Overall, ancient Greek economic philosophy stressed central planning, social order, and anti-individualism rather than free markets.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    The Ancient School of Economic Thought

    BY AMOGH SAHU

    The Ancient School


    Often referred to as the Pre-Classicals

    Technically, every society is economic:

    - Sumer - Persia - Ancient Greece(focus of Presentation)

    Ancient Greece
    Considered themselves as poor(relatively)

    Highly Dispersed

    - No Central Palace Structure - Independent Governments - Decentralized(more free-market compared to Egypt) Had a Currency(Drachma)

    Economy of Ancient Greece


    Land is the most important factor in the ancient

    world. - Agricultural produce is main store of value. Prices were set, rather than allowed to float Economy grew largely through Labor Business class not as prominent as Today

    The Greek Economy: A Philosophical Perspective


    Moses Finley(American Historian) stated that:

    - Oikonomia (household management) was the main source of economic ideology Economy was subordinate to Society and Politics (Communist) Greek value system emphasized collective over individual

    Ancient Greek Economic Philosophy Continued


    Entrepreneurial Risk taking activities were

    condemned. (banausic) - Seen as unnatural and corrupting individualism


    Prices were set by personal relationships, rather than by supply and demand.

    Model of Greek Economy


    Labor

    force at height of power (431 B.C.)

    305,000

    people total 160,000 were citizens (80K men and women, 80 children) 25,000 were free resident foreigners (metics) 120,000 were slaves (outnumbered male citizens 3:1)

    Finleys Model

    Summary
    Generally a Centrally Planned Economy

    Values over Profit


    Little Entrepreneurship

    Ancient Greek Economic Thinkers


    Hesiod

    Plato
    Aristotle Xenophon

    Hesiod
    Poet

    Labor Economist
    Wrote about Work in Hours and Days

    Works and Days


    More Theological than Economic

    A Moralistic View of Economic Life


    Basic Economic Problem Notions of Competition and Informational Efficiency

    Xenophon
    Wrote The Economist

    Economist=Estate Manager
    Landed Estates= Paramount Source of Wealth

    Critobulus/Socrates
    Critobulus is wealthier than Socrates

    He has more friends, lives a fuller life.


    Yet Socrates is Wealthier, How?

    Oikonomikos
    Balance Sheet Concept (Assets/Liablities)

    Theory of Effective Organization


    More Management than Economics A Model for Macroeconomic Management:

    1. Organized Bureaucracy 2. Strong Leadership

    Plato
    Philosopher

    Student of Socrates
    Wrote The Republic

    Economic Model of the Republic


    Moralistic Perspective

    Neither Democracy nor Tyranny


    Totalitarian State Philosopher Kings would receive no opportunities for

    rent-seeking.

    Model of the Worker and the Society


    The Moral Worker

    Static Society based on stability.


    Small Administrative Units Planned, Bureaucratic Society based on Scarcity

    Aristotle
    Wrote on Markets

    Had a notion of Justice

    Aristotle on Market Interactions


    Negotiation between Buyer and Seller

    Based on Ethics
    Regulated Prices (EOD unresolved)

    Aristotles Theory of Justice


    What is Justice?

    - Return allocated by Capital Invested(Dsitributive Justice) - For any wrongdoing, there is a necessity to use an arithmetic mean to redstribute (Rectificatory Justice) - For any Transaction, Take the HARMONIC MEAN between highest price demanded, and lowest Price Spplied(Exchanging Justice)

    Acquisition of Wealth
    Estate Management=GOOD

    Anti Commerce and Usury(lending money at

    Interest) Citizens aim at a good life(Implied: Not a rich life) Aristotle was Anti- Commerce due to unlimited acquisition of Wealth

    Conclusion
    Moralism and Justice

    Planning and Bureaucracy


    Order and Organization Anti-Market and Anti-Individual

    Value Judgement Economics


    Some Ideas of Competition as well as Supply and

    Demand.

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