🗡️Ancient Greece Unit 13 – Economy and Trade

Key Economic Concepts

• Ancient Greek economy primarily agrarian with focus on agriculture, fishing, and crafts
• Concept of autarky aimed for self-sufficiency and minimal reliance on imports
  • Households produced most necessities (food, clothing, tools)
  • Cities strived to maintain own food supply and resources
• Division of labor emerged with specialized artisans (potters, metalworkers, weavers)
• Slavery played significant role in economy, providing labor for households and workshops
• Colonization expanded Greek world, establishing new cities for trade and resources
• Coinage introduced in 6th century BCE facilitated trade and wealth accumulation
  • Coins minted from silver, gold, and electrum (alloy of silver and gold)
• Liturgy system required wealthy citizens to finance public projects and services

Major Trade Routes and Partners

• Extensive maritime trade network connected Greek city-states and colonies
  • Aegean Sea, Black Sea, and Mediterranean Sea major trade routes
• Overland trade routes connected Greece with Anatolia, Persia, and Balkans
• Athenian port of Piraeus became hub of Mediterranean trade
• Major trade partners included:
  • Phoenicians (luxury goods, dyes, glass)
  • Egyptians (grain, papyrus, linen)
  • Etruscans (metalwork, pottery)
  • Carthaginians (silver, textiles, slaves)
• Greek colonies in southern Italy (Magna Graecia) and Sicily facilitated trade with western Mediterranean
• Grain trade with Black Sea region (Crimea) crucial for feeding growing population
• Amphora, a two-handled ceramic jar, used for transporting wine, olive oil, and other goods

Important Goods and Resources

• Agricultural products formed basis of economy and trade
  • Wheat, barley, and other grains
  • Olives and olive oil
  • Grapes and wine
  • Figs, honey, and other fruits
• Mineral resources played key role in economy
  • Silver from mines of Laurion in Attica
  • Gold from Thrace and island of Thasos
  • Copper from Cyprus
  • Iron from Laconia
• Timber from Macedonia and Thrace used for shipbuilding and construction
• Textiles, especially wool and linen, important trade goods
• Pottery, both utilitarian and decorative, widely exported
  • Athenian black-figure and red-figure pottery highly prized
• Luxury goods (perfumes, jewelry, spices) traded with East

Currency and Exchange Systems

• Early Greek trade relied on barter system, exchanging goods for other goods
• Introduction of coinage in late 7th century BCE revolutionized trade
  • Lydian king Croesus first to issue pure gold and silver coins
• Greek city-states began minting own coins, typically silver drachma
  • Athenian "owl" drachma became standard currency in Aegean
• Money changers (trapezitai) facilitated currency exchange
• Temples served as banks, providing secure storage for valuables and loans
• Bottomry loans financed maritime trade, with ship and cargo as collateral
• Contracts and legal agreements regulated trade and commerce

Economic Institutions and Practices

• Agora served as marketplace and center of economic activity in Greek cities
  • Stalls and shops sold wide variety of goods
  • Bankers and money changers operated in agora
• Guilds and associations organized artisans and merchants by trade
  • Regulated prices, quality standards, and apprenticeships
• Metics (foreign residents) played important role in economy as traders and craftsmen
• Liturgy system funded public works, festivals, and military equipment through contributions of wealthy citizens
• Taxation primarily indirect through harbor fees and import/export duties
• Slavery integral to economy, with slaves working in households, mines, and workshops
  • Enslaved people could be bought, sold, and rented
• Xenophon's Oeconomicus provides insight into household management and agriculture

Impact of Trade on Greek Society

• Trade stimulated growth of cities and rise of merchant class
• Increased wealth and prosperity, especially in Athens and Corinth
• Exposure to new ideas, technologies, and cultural influences through contact with other civilizations
  • Adoption of Phoenician alphabet
  • Influence of Egyptian and Near Eastern art
• Colonization spread Greek culture and language throughout Mediterranean
• Dependence on grain imports made Athens vulnerable to naval blockades during Peloponnesian War
• Widening gap between rich and poor, as wealth concentrated among elite
• Luxuries and exotic goods became status symbols for wealthy

Economic Challenges and Crises

• Overreliance on slave labor stifled technological innovation and efficiency
• Debasement of currency (reducing silver content of coins) led to inflation
• Peloponnesian War (431-404 BCE) disrupted trade and devastated Athenian economy
  • Sparta's occupation of Decelea forced abandonment of Attic countryside
  • Athenian treasury depleted by war expenses and loss of tribute
• Plague of Athens (430-426 BCE) killed up to one-third of population, including leader Pericles
• Grain shortages and famines occurred during times of war or drought
• Piracy threatened maritime trade routes and coastal settlements
• Inequitable distribution of wealth contributed to social unrest and political instability

Legacy and Influence on Later Economies

• Greek coinage set standard for ancient Mediterranean world
  • Alexander the Great's currency united his empire economically
• Hellenistic period saw expansion of trade networks and economic integration
  • Rise of Rhodes as major trade hub and banking center
  • Ptolemaic Egypt became breadbasket of Mediterranean
• Roman Empire adopted many Greek economic practices and institutions
  • Continued use of silver drachma (denarius) as primary currency
  • Expansion of maritime trade and construction of ports (Ostia, Puteoli)
• Byzantine Empire preserved Greek economic traditions in eastern Mediterranean
• Islamic Golden Age scholars studied and built upon Greek economic thought
  • Influence on medieval Islamic banking and contract law
• Rediscovery of Greek texts during Renaissance shaped modern economic theory
  • Xenophon's ideas on division of labor and management
  • Aristotle's concepts of value, money, and justice in exchange