Romans were the men of action.
They built institutions that profoundly influenced the development of law and
politics. They approached the economic problems of the day from the political
standpoints; thus their specific contribution to economic thought is very
little. Cicero commended the traditional roman virtue of public service. Though
he did not possess original ideas, this statements became incomparably the most
important single literary means for spreading them throughout Western Europe.
He said that though all men were not equal in learning , yet in the possession
of reason, in their psychological backstage and in their sentiment towards good
or bad they were alike. To him, equality was
a moral requirement and state , a moral community or corporate body
which existed to supply its mean less the advantages of mutual aid and just
government. There consequence follow from these observations:-
a) Since state in the common
property of people , it’s authority arises from their collective power.
b) Political power when exercised
rightfully and lawfully becomes the corporate power of people.
c) State is always subject to the law of God or to moral or natural law.
To Seneca, it was the moral duty
of a good man to offer his services in some capacity or the other. He
considered society more important than state. A good man renders services to
humanity even though he has no political power. He does so by piety of his
moral kinship to follows. According to
him , a man who by virtue of his thought becomes the teacher of mankind fills a
place nobler and more influential than the political ruler. Seneca’s thought
tended towards humanitarianism. Agriculture, Cato, Varro, Pliny, Columella and Paladius praised agriculture
and were chiefly interested in the improvement of agriculture technique. They
favored small scale farming and decried the maintenance of large estates which
were worked by slave labor. Cato regarded an agricultural estate of 150 acres
of olive groves and 62 acres of vine-yards as the ideal one. Varro advised crop
growing and stock breeding. All of them supported the back to nature movement
to increase food production and wrote semi-technical books on rural economy.
According to the Pedius, the prices of things were discerned neither with reference to fill, nor
to their utility to single individuals, but had a common validity. They did not
develop their ideas on value. According to them, price was determined by the
forces of demand and supply. In due course of time the concept of just price
developed which showed some regard for ethical considerations. They also
recognized the importance of wants and utility but not as a potential factor.
Cicero observed that the only limit to the valuation of such things was the
desire which anyone had for them for it was difficult to limit price unless
desire was first limited. Thus Roman state interfered with economic matters and
commercial regulations in difficult times. Fines were imposed on merchants who
had stored up food grains in the expectation of high prices, Officers were
appointed to inspect the goods which were put on sale and the entire quantity
was confiscated if a fraud was detected. The Exportation of precious metals was
banned. Instances of traffic regulation are not wanting. In times of financial
stringency the Government established a public bank to assist professional
bankers.
