Property & Empire:Property & Empire:

• Neolithic villages (40000-4000BCE):– Private: tools, weapons, ornaments– Common: land, livestock, buildings

• Sumerian temple cities (3500BCE):– 90%+: slaves, peasants, unskilled workers– Temple (Deity):

• land, livestock, buildings• Administrated by priests• Protected (by 3rd millennium) by warrior class

11stst Empire: Sargon of Akkad (2340BC) Empire: Sargon of Akkad (2340BC)

Sources of social stratification:– Ethnic/tribal explanation:

• Sumerian is unrelated to any other language=> Sumerians were thus probably conquerors• Empires established dominate the Neolithic

populations the “united”• Once established, imperial surplus becomes an

incentive for conquest or pillage• Mythological “god wars” probably refer to this

– Marxist: private property (private weapons...)– Cumulative causation: it’s both!

Technological advancesTechnological advances• Smelting iron ore (Primarily for military)

• Chariots

• Battle ships

• Irrigation– Specifically in riverine empires– Requires large-scale organization

(government)

Trade: PhoeniciaTrade: Phoenicia• Early stage:

– High value goods only– From the Celts to the Indus valley

• Phoenicians:– Established by 3000BCE (recorded history)– Home ports: Sidon & Tyre in today’s Lebanon– Fully specialized sailors & merchants– Colonies around Mediterranean (Carthage)– Tin from England, circumnavigated Africa(?)

Trade: Greece (origins)Trade: Greece (origins)

Mycenaean civilization (14-12 c. BCE)• Knossos, Island of Crete

• Maritime life due to poor resources

• Adopt Phoenician “business model”

• By 8th c. dominate the E. Mediterranean

• Homeric epics (Troy, Odysseus):

Black Sea trade wars

Mycenaean CivilizationKnossos, Crete14-12th centuries BCE

Trade: Greece (growth)Trade: Greece (growth)• Population pressure generates colonies

• Colonies generate food surplus

• Allowing:– “Old” cities (Aegean) specialize in wine & oil

• High value goods• High income for core cities• Economic interdependency

• Colonies tied to “Empire” by commercial relations & NOT political control

Golden Age of Athens (500BC)Golden Age of Athens (500BC)• Banking, insurance, etc.

• Coined money (1st in Lydia):– Reduces transaction costs– Established issuer reputation / credibility – Virtuous circle:

• Greeks distribute silver coins throughout colonies• Athens secures major silver source in Laurium• Athenians gain dominance with triremes

• Conflicts & doom: Persians & Sparta

Alexander the Great (300BC)Alexander the Great (300BC)• Hellenistic culture, language, & trade

• Greeks dominate civil-service & trading

• The Empire quickly collapses but the culture & commerce remain

• Alexandria:– 500000+ population– Library– Trade in staple goods & a large variety of

luxuries from as far as China

The Rise of Rome (500-200BC)The Rise of Rome (500-200BC)• Rome combined 2 imperial “paradigms”

– Maritime (Phoenicia, Greece):• Loosely connected colonies• Food assured through shipping• Ships can be held in reserve• Low costs; especially as size increases

– Land-based (Persia):• Direct political control of colonies• Need for standing army• High costs; especially as perimeter increases

Rome (500-200BC)Rome (500-200BC)• Society & culture: Small independent

farmers with high regard for property rights

• Legal system:– Freedom of enterprise – Commerce tolerated – Enforcement of contracts & property rights– Settlement of disputes– A uniform & coherent legal framework for

economic activity throughout the empire

Roman Empire (200BC-14AD)Roman Empire (200BC-14AD)• Food surplus is taken to a new level:

– Huge fleets:

wheat from Sicily, North Africa, & Egypt– 200,000 of the Roman plebeians got free food

• Pax Romana (The “Roman Dream”):– Road system used for military deployment– Legions “pacifying” the periphery– Piracy & brigandage very low

Roman Empire (14-114AD)Roman Empire (14-114AD)• Population rises to 100 million

• Roman free artisan’s real earnings

=

1850 British factory worker

=

1929 Italian worker.

• BUT: Slave labor fluctuates with military expansions (military business cycle)

Trouble in Paradise (Early 200s)Trouble in Paradise (Early 200s)

• Barbarian incursions & rising piracy– Increasing reliance on mercenaries

– Low moral & reduced effectiveness

• Problem:– Imperial economy must pool many

small-scale surpluses through taxation

– This depends on the flow of commerce

Trouble in Paradise (continued)Trouble in Paradise (continued)

• Localized labor shortages– Slaves were scarce & more prone to revolt– “problem spots” pacified with consumption

• Monetary inflation– Coin debasement due to budget deficits– Rising defense costs

• Internal corruption (private & public)

Trouble in Paradise (Late 200s)Trouble in Paradise (Late 200s)• Diocletian:

– Fixed wages & prices to fight inflation– Professions & offices become hereditary– Inflation prompted “levies in kind”

• Demonetizing the economy• Production for market & specialization declines• Undermining the basis for the imperial economy

– Taxes rise• Most nobles were excluded• Commoners seek protection (physical & fiscal) at

estates which start to resemble feudal castles

The Big PictureThe Big Picture• Technological advances are confined:

– Roads, aqueducts, architecture– No labor-saving technology

• No incentive for slaves/farmers/workers to innovate since they will not reap the benefits

• Small privileged classes devoted to:– War, government, arts & sciences, &

conspicuous consumption

• Surplus is almost only imperially based

Towards the Dark AgesTowards the Dark Ages• Barbarians shrink territory & commerce

• Split: East & West

like a corporation spinning off a failing subsidiary—the Western empire):– East: Byzantium (Constantinople) survives

until the Ottomans (15th c.)• Probably due to better management & less

parasitic nobility

– West: Holy Roman Empire (Rome) implodes under increasing barbarian pressure by 476