Economic Thought In Ancient Greece: Xenophon And Plato

In ancient Greece the poet Hesiod was a pioneer in economic observations. However, the beginnings of the economic thought which contributed to the economic analysis are first seen in the works of Xenophon, Plato and Aristotle. This paper analyses the contribution of Xenophon and Plato to the economic thought. In his work Economics, Xenophon discusses economy, management and administration of property at a microeconomic level. Furthermore, in his“Ways and Means“ for the first time in the history of human thought the public finances are discussed. On the other hand, Plato in his works Republic, Statesman and Laws gives theoretical foundations and describes the idea of a perfect, ideal state. The ideal state can only be the state founded on the idea of justice, and the concept of the ideal state relies on the division of labour, which is one of his greatest contributions from the economic-analytical aspect. In trade, profit, interests he saw threats to the ideal state, while the life in the ideal state would be governed by law determining what is allowed and what is not. Plato’s economic thought is founded on the whole economy relying on norms, as well as on its static nature, ie.e lack of economic growth.