KYLA MAE M.

CERBAS BAE 3-B

Self-Assessment Exercise 2

General Instructions: Read unit 2 of module 1 then answer the questions below
comprehensively.

1. What is the importance of studying ancient economic thought?

Studying ancient economic thought is important for several reasons:

Historical Context: It provides insights into how economic ideas and practices evolved over time.
Understanding ancient theories helps trace the development of economic concepts and institutions.

Cultural Influence: Ancient economic thought reflects the values, social structures, and priorities of past
societies. Analyzing these can reveal how economic systems were influenced by cultural and ethical
considerations.

Foundational Concepts: Many modern economic ideas have roots in ancient thought. For example,
concepts from Aristotle, Plato, or early economists like Xenophon and the Scholastics laid groundwork
for later economic theories.

Comparative Analysis: By comparing ancient economic systems with contemporary ones, scholars can
identify enduring patterns and differences, enhancing our understanding of economic principles and
their applications.

Problem-Solving Insights: Ancient economic writings often addressed issues such as trade, taxation, and
resource management. Studying these can offer valuable lessons for modern economic problems and
policies.

In essence, ancient economic thought helps us appreciate the evolution of economic ideas and provides
a richer understanding of how human societies have grappled with economic issues throughout history.

2. What were the Hebrews’ main economic ideas?

The Hebrews, particularly in the context of ancient Israel and Judah, had a number of economic ideas
and practices that were influenced by their religious beliefs, social structures, and the practical needs of
their society. Here are some key aspects:

Agrarian Economy: The economy was primarily agricultural. Farming, particularly the cultivation of
grains, olives, and grapes, was central to their livelihood. The land was considered a gift from God and
was meant to be used responsibly.

Land Ownership and Redistribution: Land was crucial and was viewed as a divine allocation. The concept
of the Jubilee year (every 50th year) is significant. During this time, land that had been sold or
mortgaged was supposed to be returned to its original owner, ensuring that land remained within the
family and preventing the accumulation of excessive wealth by a few individuals or families.

Tithing: A system of tithing required that a portion of agricultural produce (typically a tenth) be given to
support the Levites, who did not own land, as well as for religious and communal purposes. This was
both a religious obligation and a means of supporting the community.

Ethical Business Practices: The Hebrew laws included regulations designed to promote fairness and
justice in economic transactions. This included prohibitions against dishonest scales and measures, and
rules to protect the poor and vulnerable from exploitation.

Debt and Forgiveness: The Hebrew laws also included provisions for debt relief and forgiveness. For
example, the Sabbatical year (every 7th year) was a time when debts were to be forgiven, and the land
was to rest. This helped prevent long-term debt crises and maintained social balance.

Charity and Welfare: There was a strong emphasis on social responsibility, including obligations to help
the poor and the stranger. Laws required landowners to leave the corners of their fields unharvested for
the poor and to provide for the needy through various forms of charity.

Economic Justice: The idea of justice extended to economic practices, with a focus on fair treatment and
protection for the less fortunate. This is reflected in various laws and prophets' teachings that
emphasized social justice, such as ensuring fair wages for workers and addressing issues of exploitation.

These ideas were deeply interwoven with the Hebrews' religious beliefs and aimed at creating a just and
balanced society, reflecting their understanding of God's will and the moral order.

3. Discuss the term “Natural Order” in the Romans economic thought

In Roman economic thought, the term "Natural Order" refers to the concept of a harmonious and
rational system that governs both the natural world and human society. This idea is rooted in the
philosophical and ethical frameworks of Roman thinkers and can be understood in several key contexts:

Philosophical Basis: The concept of Natural Order in Roman thought was influenced by Stoic philosophy,
which emphasized living in accordance with nature and reason. Stoics believed that there was a natural
order to the universe that human beings should align themselves with. This philosophical perspective
held that just as the natural world operates according to rational principles, so too should human society
and its economic practices.

Economic and Social Harmony: Romans believed that economic activities should reflect the Natural
Order by promoting social harmony and stability. This meant that economic transactions should be
conducted with fairness and integrity. For example, the idea of fair pricing and honest trading practices
was seen as aligning with the Natural Order because they promoted justice and social cohesion.

Role of the State: In Roman thought, the state was seen as playing a crucial role in maintaining the
Natural Order. The state’s role was to regulate and manage economic activities in a way that ensured
stability and prevented disorder. This included enforcing laws related to property rights, contract
enforcement, and commercial regulations. The legal framework was intended to reflect and uphold the
principles of Natural Order by ensuring that economic activities contributed to the common good.

Economic Ethics: Roman economic thought also encompassed ethical considerations related to wealth
and property. There was an emphasis on the responsible use of wealth and the moral obligations of the
wealthy towards society. The concept of Natural Order implied that the accumulation of wealth should
be balanced with social responsibility and the well-being of the community.

Natural Law: The idea of Natural Order was closely related to the concept of Natural Law, which was a
body of unwritten laws believed to be inherent in human nature and discoverable through reason.
Roman legal theorists and philosophers, such as Cicero, argued that these laws provided a universal
standard for justice and ethical behavior. Economic practices that were in accordance with Natural Law
were seen as contributing to a just and orderly society.

Overall, in Roman economic thought, the Natural Order represents a vision of a well-ordered, rational,
and just economic system that aligns with broader philosophical and ethical principles. This idea was
influential in shaping Roman attitudes towards commerce, regulation, and social responsibility.

4. Discuss the Economic thought of Hebrews.

The economic thought of the Hebrews, as reflected in the Hebrew Bible and the practices of ancient
Israel, was deeply interwoven with their religious beliefs and social values. This thought is not easily
separated from their theological and ethical frameworks, influencing various aspects of economic life.
Here’s a detailed exploration of key elements:

1. Land Ownership and Use

Divine Ownership: The concept of land ownership was fundamentally tied to divine will. The land of
Israel was viewed as a divine gift rather than personal property. This belief was rooted in the covenant
between God and the Israelites. Land ownership was therefore seen as a stewardship rather than a
personal entitlement, requiring responsible use.

Jubilee Year: The Jubilee year, occurring every 50th year, was a major institution aimed at preventing
the concentration of land ownership. During this year, land that had been sold or transferred was
returned to its original family, and indentured servants were freed. This practice was intended to
prevent long-term accumulation of wealth by a few and to promote social equity.

2. Economic Practices and Social Welfare

Tithing: The practice of tithing required that individuals give a tenth of their produce to support religious
institutions and the Levites, who did not own land. Tithing also had a social dimension, providing
resources for communal and charitable purposes.

Gleaning Laws: Landowners were required to leave the edges of their fields unharvested and to allow
the poor, widows, orphans, and strangers to glean the fields. This practice ensured that those in need
had access to food and helped to support the vulnerable members of society.

Charitable Obligations: There were specific commands to help the poor and needy, such as providing for
them during the harvest and ensuring fair treatment. Charity was considered a moral and religious duty.

3. Debt and Financial Relief

Sabbatical Year: Every seventh year was the Sabbatical year, during which debts were forgiven, and land
was allowed to rest. This practice was intended to provide economic relief and prevent perpetual
indebtedness, which could lead to systemic poverty.

Prohibition of Interest: Charging interest on loans to fellow Israelites was generally prohibited, especially
in cases involving the poor. This prohibition was meant to prevent exploitation and to promote a sense
of communal responsibility.

4. Ethical Business Practices

Fairness and Justice: Economic transactions were expected to be conducted with fairness and integrity.
This included the use of honest weights and measures to ensure fair trade. The ethical treatment of
workers and the prohibition of dishonest practices were central to economic laws.

Social Responsibility: Economic activities were expected to contribute to social welfare and justice.
Wealth was seen as a trust that should be used for the benefit of the community, including helping
those less fortunate.

5. Role of Leadership and Law

Judicial Oversight: Leaders and judges were responsible for enforcing economic laws and ensuring
justice. They were expected to act in accordance with divine principles and to uphold fairness in
economic matters.

Legal Framework: The legal code, including laws found in the Torah (such as those in Exodus, Leviticus,
and Deuteronomy), provided detailed regulations governing various aspects of economic life, including
property rights, labor relations, and financial transactions.

6. Agrarian Economy
Agricultural Basis: The economy was primarily agrarian, and much of the economic thought was
centered around agricultural practices. This included regulations on crop cultivation, land management,
and the distribution of agricultural resources.
In summary, Hebrew economic thought was characterized by a strong connection between economic
practices and religious ethics. The emphasis was on justice, fairness, and communal responsibility, with
economic laws designed to promote social equity and prevent exploitation. These principles reflected
the broader theological and moral framework within which the Hebrews operated, highlighting the
integration of economic and spiritual life.

5. Discuss the Greek economic thought.

Greek economic thought, particularly as developed during the classical period of Ancient Greece, was
deeply influenced by philosophical, political, and social ideas. Greek thinkers explored various aspects of
economics, including trade, property, labor, and the role of the state. Here’s a comprehensive discussion
of Greek economic thought:

1. Philosophical Foundations
Aristotle’s Economics: Aristotle's works provide a significant foundation for Greek economic thought. In
his "Politics" and "Nicomachean Ethics," Aristotle discussed the concept of economics within the
broader context of ethics and politics. He distinguished between "oikonomia" (household management)
and "chrematistike" (the art of acquiring wealth). Aristotle viewed oikonomia as a natural and virtuous
practice concerned with managing a household and ensuring its well-being. In contrast, chrematistike
was associated with profit-making and trade, which he considered less virtuous if pursued excessively.

Plato’s Ideas: In Plato's "Republic," economic activity is discussed primarily in the context of justice and
the ideal state. Plato advocated for a class system where the guardians (rulers) would focus on
governance and philosophy, while the producers (farmers, artisans, etc.) would handle economic
activities. His ideas reflected a vision where economic roles were closely tied to social order and justice.

2. Trade and Commerce

Role of Trade: The Greeks placed significant value on trade and commerce, especially in city-states like
Athens. Trade was vital for the economy due to the limited arable land in Greece. Maritime trade
facilitated the exchange of goods, such as olive oil, wine, and pottery, which were central to the Greek
economy.

Commercial Practices: Greek commercial practices were sophisticated, involving standardized weights
and measures and extensive use of currency. Athens, for instance, was a major trading hub, and its
economy was bolstered by a network of trade routes across the Mediterranean.

3. Property and Wealth

Land Ownership: Land was a primary source of wealth and status in Greek society. Ownership of land
was associated with political rights and social prestige, particularly in the context of the polis (city-state).
Land ownership and its management were critical aspects of both economic and political life.

Wealth and Virtue: Greek economic thought often linked the pursuit of wealth with moral and ethical
considerations. Philosophers like Aristotle and Plato debated the role of wealth in a virtuous life and its
impact on personal and societal well-being. While some Greeks viewed the accumulation of wealth as
necessary for a well-functioning society, there was also concern about the moral implications of wealth
and its potential to corrupt.
4. Labor and Production
Slavery: Slavery was a common institution in Ancient Greece, and it had significant economic
implications. Slaves were used in various economic activities, including agriculture, mining, and domestic
work. The reliance on slave labor impacted Greek economic practices and social structures.

Work and Virtue: Greek thought on labor was influenced by philosophical views on virtue and the role of
different classes in society. For example, while manual labor was often viewed with disdain by the elite,
it was recognized as necessary for the functioning of society. Philosophers like Aristotle acknowledged
the importance of labor but also emphasized the need for a balance between work and leisure in
achieving a good life.

5. Economic Thought and Politics

Role of the State: The Greek city-states had varying approaches to economic regulation. In Athens, for
instance, there was a relatively open market with limited state intervention, though the state did
impose certain regulations to ensure fairness and manage public resources.

Economic Justice: Greek political philosophers like Aristotle explored ideas related to economic justice
and the distribution of wealth. Aristotle’s concept of distributive justice focused on fairness in the
allocation of resources based on merit and contribution to the community.

6. Money and Currency

Use of Currency: The Greeks developed and used various forms of currency, including coins made from
metals like silver and bronze. Currency facilitated trade and economic transactions and was an essential
element of the Greek economy.

Monetary Policy: While the Greeks did not have a formal monetary policy as we understand it today,
there were practices related to the regulation of currency and coinage. City-states often issued their
own coins, and the stability of these currencies was important for economic stability.

[Link] Roman economic thought.

Roman economic thought is an intriguing subject because it reveals how the Romans approached
economic issues within their society. While they didn't have economic theories in the modern sense,
their practices and writings offer insight into their economic understanding.

Key Aspects of Roman Economic Thought

Agricultural Focus:

The Roman economy was heavily agrarian. Land ownership was central to wealth and social status. The
ideal Roman citizen was often depicted as a farmer, embodying virtues such as frugality and hard work.
Agriculture was not only crucial for sustenance but also for economic stability and power.
Trade and Commerce:

Romans engaged in extensive trade across the Mediterranean and beyond, facilitated by their advanced
infrastructure like roads and ports. They traded goods such as grain, olive oil, wine, and luxury items.
This trade was vital for the economy, particularly for Rome, which depended on grain from Egypt and
North Africa.
Slavery:

Slavery was a fundamental aspect of the Roman economy. Slaves were used in households, agriculture,
and industries. Their labor was crucial for economic production and maintenance of the elite's lifestyle.
Usury and Finance:

Roman law and thought regarding finance and usury were quite developed. Initially, charging interest
was prohibited, but over time, regulations evolved. By the late Republic and early Empire, there was
greater acceptance of interest on loans, although it was regulated to prevent excessive profiteering.
Economic Writings:

Roman thinkers like Cato the Elder, Columella, and Varro wrote about agriculture and economic
practices. For example, Cato's "De Agri Cultura" provided practical advice on farming and estate
management. Columella's writings focused on agricultural techniques and estate management,
reflecting the importance of agriculture in Roman thought.
Economic Policy and Administration:

The Roman state played a role in economic affairs through policies and regulations. For instance, the
state regulated grain prices to prevent shortages and unrest. The Roman emperors also intervened in
economic matters, such as the construction of infrastructure, which facilitated trade and economic
activity.
Social and Economic Ethics:

Roman thought often intertwined economic practices with social ethics. For example, there was a strong
emphasis on moral behavior in economic transactions, such as honesty in trade and fair dealing. The
Roman philosopher Seneca and others discussed the moral implications of wealth and poverty.
Taxation and Public Works:

Taxation was crucial for funding public works and the administration of the empire. The Romans
developed a sophisticated tax system, including direct taxes on property and indirect taxes on goods and
transactions.
Influence and Legacy
Roman economic practices and thought influenced later European economic systems. The Romans’
emphasis on infrastructure, legal frameworks for commerce, and the integration of diverse regions into
a unified economic system laid foundational concepts that would shape economic development in
Europe during the Middle Ages and beyond.

Overall, while Roman economic thought might not fit neatly into modern economic theory, it reflects a
sophisticated understanding of managing an empire’s resources, trade, and labor.