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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
Ancient Empires: Sargon to Constantine
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)
Ancient Empires: Sargon to Constantine
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(?)
Ancient Empires: Sargon to Constantine
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 Civilization
Knossos, Crete
14-12th
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
Ancient Empires: Sargon to Constantine
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
Ancient Empires: Sargon to Constantine
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
Ancient Empires: Sargon to Constantine
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
Ancient Empires: Sargon to Constantine
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
Ancient Empires: Sargon to Constantine
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)
Ancient Empires: Sargon to Constantine
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)
Ancient Empires: Sargon to Constantine
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
Ancient Empires: Sargon to Constantine
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
Ancient Empires: Sargon to Constantine

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Ancient Empires: Sargon to Constantine

  • 1. 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
  • 3. 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!
  • 4. Technological advancesTechnological advances • Smelting iron ore (Primarily for military) • Chariots • Battle ships • Irrigation – Specifically in riverine empires – Requires large-scale organization (government)
  • 6. 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(?)
  • 8. 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
  • 10. 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
  • 12. 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
  • 13. 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
  • 15. 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
  • 17. 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
  • 19. 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
  • 21. 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)
  • 23. 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
  • 24. 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)
  • 26. 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
  • 27. 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
  • 29. 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