The Sophists, true to their character as philosophers of extreme individualism, developed a new theory of the origin of society. The already current term φύσις, “nature,” which had been accepted as a sufficient reason for the state’s existence, was now opposed to “law,” νόμος, as natural to artificial. The Sophists argued that, in a primitive state of nature, perfect individualism was the rule. Men did injustice without restraint. The weaker, however, being in the majority, and finding it to their disadvantage to compete with the strong, agreed neither to do nor to suffer injustice, and constrained the stronger minority to co-operate in their decision. Thus arose the social contract whereby nature gave up its real instinct for an artificial convention (συνθήκη), and thus society came into being.[[39]] The theory, at first, though untrue, was not intended to be destructive of moral foundations, but was opposed rather to the traditional idea of the laws of a state as the “decrees of a divinely inspired lawgiver.”[[40]] In the hands of men like Thrasymachus[[41]] and Callicles,[[42]] however, it became a means of denying that the life according to nature was bound by any laws which the strong need observe, and that might was the only final law.
In line with their radical individualism, the Sophists were also pioneers in the more cosmopolitan spirit that characterized the Cynics and Stoics. They taught the doctrine of the fundamental worth and relationship of men,[[43]] and thus, with the Cynics, started the attack upon the theory that upheld slavery as a natural institution.[[44]] Little further is known of their other social or economic ideas. Protagoras wrote a work on “wages,” but it was probably an argument relative to the acceptance of pay by Sophists.[[45]] In any event, this fact that the Sophists were so ready to be enriched through their lectures is clear evidence that their teaching on wealth was not the negative doctrine of the other Greek philosophers.[[46]] Prodicus seems to have scorned menial labor as morally degrading, though he agreed with Hesiod in his doctrine of the dignity of all work that is noble.[[47]] He emphasized the necessity of labor in the production of material good,[[48]] and, like Democritus, was the forerunner of the Socratics in his insistence upon right use as a criterion of wealth.[[49]] Hippias prided himself on his accomplishment in many arts,[[50]] and thus probably did not share the prejudice of the philosophers against manual labor.
Euripides, though markedly individualistic, like the Sophists, shows traces of the older use of nature to explain the necessity of the state. He draws a parallel between the social order and the order of nature, by which law and government are justified, and the right of the middle class of farmers to rule is upheld.[[51]] He emphasizes the importance of agriculture, and the dignity of the peasant farmer (αὐτουργός), who works his own land, as the stay of the country.[[52]] This latter accords well with his cosmopolitan spirit, which he shares with the Sophists. He opposes the artificial distinctions of birth,[[53]] slavery,[[54]] and the traditional Greek idea of the inferiority of woman.[[55]] His attitude toward wealth is that of the moral philosopher rather than that of the Sophist.[[56]]
Thucydides reveals considerable insight into economic problems, though he does not deal with them directly. Roscher declares that the Greek historian contributed as much as any other writer to give him the elements of his science, since he alone, of all Greek writers, did not confuse his economic ideas with ethics.[[57]] He recognizes the place of labor in production, and the importance of material wealth as the basis for all higher development.[[58]] He also has some appreciation of the true nature of capital. In his description of the undeveloped condition of early Greece, which lived from hand to mouth, he writes like a modern economist describing primitive conditions in Europe in contrast to the capitalism of his own day.[[59]] Cornford’s attempt[[60]] to discredit Thucydides as a historian, and to show that he missed the true cause, economic, of the Peloponnesian War, is not convincing. Cornford both exaggerates the influence of commercial interests in fifth-century Athens and belittles the economic insight of Thucydides. The Greek writer is, however, like Herodotus, a historical source for the actual economic conditions in Greece, rather than an economic theorist.
Aside from the fragmentary hints presented above, Greek economic thought begins with the Socratics, Plato, Xenophon, and Aristotle, and is continued, in a very incidental way, in the orators, and in the Stoics and their contemporaries. As we shall see, however, even in the Socratics, no real science of wealth is developed, in the modern sense. The reason for this lack, which is most commonly emphasized since it is closest at hand, is that the phenomena of actual production were but slightly developed. This explanation is well summarized by Haney[[61]] as follows: (a) that economic relations between individuals and states were far simpler than now; (b) that international commerce was not encouraged by ancient states, whose ideal was rather national exclusion; (c) that public finance was then very limited and unimportant; (d) that division of labor was not extensive; (e) that the relative lack of security of life and property discouraged exchange and saving; (f) that in all these respects, the situation is analogous to that of mediaeval Europe.
There is certainly much force in this general reason. The development of economic thought must, of course, depend upon the actual conditions under which the thinkers live. We have already admitted also the vast difference between the present economic complexity and the simplicity in ancient Greece. The foregoing summary of Haney, however, is misleading. Though the ideal of Sparta was national exclusion, it was surely not that of Athens and some other Greek states. All extant records agree that Athens, at least, the home of the economic theorists, encouraged international commerce by every means in her power. The division of labor, while insignificant compared with the minute division of modern mechanical industry, was by no means inextensive, as is evidenced by the fact that this is a point on which Greek thinkers show especial insight. The notion that Greek industry was chiefly limited to household economy, and that the era of capitalism had not yet dawned, has long ago been refuted by Meyer and others. The alleged insecurity of life and property, while relatively true, is exaggerated for Athens, at least. Above all, the common attempt to draw an analogy between classical Greece and mediaeval Europe economically is due to an utter misconception. The period of Greek economic history, which corresponds to that of the Middle Ages, is rather the era of economic awakening, between the middle of the ninth and the end of the sixth century B.C.[[62]]
Other reasons for the limited development of Greek economic thought are:
a) The dominance of the state over the individual citizen, which fact caused political rather than economic speculation to absorb the attention of Greek thinkers. It is stated that the importance of the individual must be recognized before a science of economics can develop.[[63]] This reason is also usually overemphasized.
b) The general prejudice in Greece against industry, labor for another, and finance for its own sake. That such a prejudice existed to some degree, arising from the old aristocratic feeling, moral objections, the reflex influence of slavery, the spirit of independence, and the belief that leisure was necessary for the proper performance of the duties of citizenship, is generally admitted. The commonly assumed universality of this feeling is, however, open to grave question. The prejudice against skilled labor was probably limited to the moral philosophers, and perhaps to the more aristocratic portion of the citizens, and we shall see in another chapter that the hostile attitude of the philosophers themselves has been considerably exaggerated. The evil effects of slavery also could not have been so marked in Greece, before the age of machinery. Moreover, as Meyer has pointed out, a prejudice against manual labor is evident among the more favored classes in most European countries today, yet it does not appear to retard the advance of industry in the least.[[64]]
c) The approval of conquest as a legitimate source of wealth. This is somewhat true as applied to the state, but it certainly is irrelevant for the individual citizen of fifth-century Athens. To appeal to Aristotle’s list of legitimate employments as evidence of this is to misinterpret his meaning, for he is thinking of a primitive life, not of contemporary Greece.[[65]]