The ethical foundations of economics in ancient Greece, focussing on Socrates and Xenophon

Abstract

PurposeEconomics had a strong linkage to ethics up to the 1930s but this has virtually disappeared today. Amartya Sen first sketched the historical relationship in his book On Ethics & Economics. This article seeks to explore the ethical foundations of economics in ancient Greece, focussing on Socrates and Xenophon.Design/methodology/approachVarious ancient Greek primary sources are used to investigate the foundations of economics as an ethical enterprise. For Socrates, the primary sources are the reports of his conversations by two students: Plato and Xenophon. For Xenophon, one has to rely upon his own writings, which are extensive and have survived in good condition.FindingsFor Socrates, human flourishing (eudaimonia) was the goal, rather than great accumulation of material goods. Xenophon accepts private property and the division of labour within certain ethical limits. In his work, the development of the ethical approach to household management (oikonomia or oikonomikē), or microeconomics, within the context of the Greek city (polis) can be seen. Friendship (philia) and gentlemanship (kalokagathia) are discussed together with oikonomia as a united package. Further, Xenophon anticipates several elements of Sen's understanding of good human functioning. There is a strong linkage between ethics and economics in Socrates and Xenophon.Originality/valueWhile great efforts have been devoted to tracing the origins of Sen's capability framework back to Aristotle, this article represents the first attempt to trace that framework back further, to Socrates and Xenophon.

The foundations of the ethical tradition of economics: Plato's Republic

“…16-17). This concern with "mutilation" repeats Xenophon's ethical evaluation of the effects of the specialization of labour in the mechanical arts (Xenophon Oec IV.2-3;1970, p. 17;Alvey, 2011). These arts must occupy a very low rank in Plato's hierarchy of occupations.…”

“…The middle level of analysis (the household) is stressed by Xenophon and Plato himself in the Laws, a "late" dialogue (Alvey, 2010c(Alvey, , 2011.…”

“…This negative reason supports an affirmative reason given later in the work. Xenophon's analysis of Sparta, especially his discussion of Lycurgus's [40] view of friendship, is relevant in this context (Xenophon Con Lac, 1925a;Alvey, 2011). Plato follows (but radicalizes) the views of Lycurgus and Xenophon.…”

“…We should also be aware that there are considerable differences between Plato and Xenophon. Xenophon is interested in practical wisdom, kalokagathia, and household management (Alvey, 2011). Plato's focus is on contemplative wisdom, the individual, and the city.…”

“…This paper considers the ethico-economic foundations of the ancient Greeks, focussing on Plato's Republic [1]. It is a companion to an article on Xenophon (Alvey, 2011). Plato was a philosopher, mathematician, and educator.…”