Aristotle’s view on the necessity and danger of money
Intro
Aristotle is widely regarded as the father of practical economic philosophy. His views on moral economic behavior, the economics of the house, the economics of trade, and his thoughts on markets can been read in Economics, Politics and The Politics and Economics of Aristotle. Within these readings we uncover Aristotle’s philosophic thoughts surrounding money. We learn that he considers money to be both dangerous and necessary in ancient Greece. But why is that? An answer will require looking at Aristotle’s writings and philosophy. Specifically we will look at money, or currency in ancient Greece, trade with retailers and between households, and what sort of exchanges Aristotle considers to be natural versus unnatural.
P1 Why is money necessary
Aristotle’s philosophic thoughts on money and economy still influence economists today. In the book The Politics and Economics of Aristotle, we learn that in order to live in a civilized society and purchase goods, a common currency must exist. Land and livestock are not easily traded or appraised without a common medium of exchange. Therefore money, often in the form of gold, can be used to purchase goods. Using gold, the value of any good can be determined and dissimilar items can be exchanged. The ability to trade goods, which are dissimilar, is important in all economies because buyers and sellers are selling different products. This convenient form of exchange is the cornerstone of a prosperous economy. Money is necessary for the common man to engage in commerce, and for the state to collect taxes. Aristotle sees no problem with money when used properly, meaning, when it is used to procure goods that are to be used in the h...
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...rd form of trade was retail. In this, a retailer would sell their products at the highest possible price in order to turn a profit. Profiteering was not respectable in ancient Greece and Aristotle thought it was a dangerous thing to engage in.
Why money can be dangerous
Usury is using money to make more money and Aristotle saw this as contemptible. When money is no longer used to allow for exchange, and instead is desired to increase ones wealth, then money is no longer being used properly. Here is where Aristotle thought money, although necessary could also be dangerous. If someone wants to aquire money, there is no natural limit to how much they can want. This want can be insatiable. Aristotle views money as something that is necessary for exchange economies, not for collection by merchants or retailers. These people may use money in a way it was not intended.
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While the idea of money as being so important in daily life in the modern era is not a concept that is given much thought, it is very important to realize that this is not exactly a new concept. It was as important during the medieval period in the time of Saint Francis of Assisi. Wealth, in many cases of modern times and medieval is seen as both the main factor for running the world as well as its downfall. It is something that no matter the period we as humans understand and use to classify the world in both abstract and in more literal ways.
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...ion back to the seasons and agriculture. Greeks were also very concerned about property rights and inheritance, as Hesiod shows us with his worries about the uncertainty of children’s paternity when women are not kept submissively in the home. Through his advice to his brother, Hesiod’s Works and Days becomes a wealth of information about the particulars of life in ancient Greece during the 7th and 8th centuries B.C.E.
The goal of human life according to Aristotle is Happiness as he stated in Nicomachean Ethics, “Happiness, then, is apparently something complete and self-sufficient, since it is the end of the things achievable in action.” Aristotle states that happiness is not just about being content in life but that one has to have lived their life rationally, well, and to the fullest of their capabilities. Happiness, according to Aristotle, can only be achieved by focusing on mans’ life as parts of a whole.
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Heilbroner, Robert L. The Worldly Philosophers: the Lives, Times, and Ideas of the Great Economic Thinkers. New York: Simon & Schuster, 1999. Print.
Is life really about the 'money', the 'cash', the 'hoes', who has the biggest gold chain or who drives the shiniest or fastest car, who sells the most albums or who has the most respect? Aristotle challenges views, which are similar to the ones held and shown by rap artists such as Jay-Z and the Notorious B.I.G., by observing that everything in the universe, including humans, has a telos, or goal in life. He states that the goal of a human life is to achieve happiness or eudaimonia. I believe that Aristotle is completely correct in his reasoning of the purpose of human nature. He even explains how happiness is different for every person, and each different type of person has a different idea of eudaimonia. He then goes on to talk about how a person must do all things in moderation, not doing the excess but at the same time doing just enough. This idea, called the "golden mean of moderation" was the backbone support to Aristotle's idea of human telos because it concluded that living a virtuous life must be the same for all people because of the way human beings are built.
Smith's formulation transcends a purely descriptive account of the transformations that shook eighteenth-century Europe. A powerful normative theory about the emancipatory character of market systems lies at the heart of Wealth of Nations. These markets constitute "the system of natural liberty" because they shatter traditional hierarchies, exclusions, and privileges.2 Unlike mercantilism and other alternative mechanisms of economic coordination, markets are based on the spontaneous and free expression of individual preferences. Rather than change, even repress, human nature to accord with an abstract bundle of values, market economies accept the propensities of humankind and are attentive to their character. They recognize and value its inclinations; not only human reason but the full panoply of individual aspirations and needs.3 Thus, for Smith, markets give full expression to individual, economic liberty.
Money is the main source of power in the world, but in ways it can be viewed as good or bad depending on the situation. It has a negative connotation when mentioned by the word “acts”. “ Acts” means to perform a fictional role. Which shows that most things involving money are fake. Though humans associate being fake with being morally wrong,but its somehow acceptable if there is a greater power involved. Another definition for acts is to take action;do something. In this case to take an action can be either good or bad. There are many ways to come across money, but nobody cares if it is good or bad because it deals with a greater power.
In his \textit{\NE}, Book IV, Aristotle provides an in depth analysis on the virtues an vices regarding material goods, the vices for which include extravagance and stinginess, and the virtue, generosity. By application of the Doctrine of the mean, the vices represent the excesses and deficiencies in giving respectively, while the virtue of generosity represents the mean of the two vices, or, more generally, the mean of all elements concerning material goods. \ari characterises a generous person as one who gives to the right person, at the right time, for the right reasons and does not take from the wrong sources, at the wrong times, for the wrong reasons. The accepted contemporary definition for generosity generally refers to being altruistic,
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According to Aristotle, generosity is the mean virtue between wastefulness and ungenerosity. In broad terms, generosity is not ascribed to those who take wealth more seriously than what is right. Since generosity is relating to wealth and anything whose worth is measured by money, anything can be used either well or badly. Hence, in the virtue of generosity, whoever is the best user of something is the person who has the virtue concerned with it, which is the generous person. Whereas the possession of wealth is taking and keeping, using wealth consists of spending and giving, which is why “it is more proper to the generous person to give to the right people than to take from the right sources and not from the wrong sources” (1120a10). Since not taking is easier than giving, more thanks will be given to the giver. The generous person will also aim at the fine in his giving and will give correctly; “for he will give to the right people, the right amounts, at the right time, and all the other things that are implied by correct giving” (1120a25). As a result, it is not easy for the generous person to grow rich, since he is ready to spend and not take or keep,...
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.