Democritus and his Influence on Classical Political Economy

Panayotis Michaelides
National Technical University of Athens
[email protected]

Ourania Kardassi
Athens University of Economics and Business
[email protected]

John Milios
National Technical University of Athens
[email protected]

ABSTRACT

Most essays on the economic ideas of the ancient Greeks are concerned with the Socratic
philosophers and very few references to the economic ideas of Democritus can be found.
The present paper demonstrates that the ancient Greek philosopher Democritus expressed
many interesting psychological and economic ideas, some of which can also be found in
the works of the Socratic philosophers that followed. In this manner, the paper concludes
that the Aderian philosopher, despite the fact that he did not engage himself primarily
with economic issues, as his economic ideas were mainly developed as part of his
psychological and philosophical teaching, is nevertheless a fine example of how ancient
Greek thought contributed to the formation of the epistemological presuppositions of
Political Economy, making Man the Subject of History and of all Social Process.


J.E.L. Classification: B00, B31
Key Words: Democritus, philosophy, ethics, psychology, economics
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
1. Introduction

The significant influence of ancient Greek thought on the writings of Classical
economists is hard to be gainsaid. Adam Smith, for example, obtained considerable data
from ancient Greek literature, not only in his major philosophical work, The Theory of
Moral Sentiments, but also in his Wealth of Nations, the fundamental work of Classical
Political Economy (Scott 1940; Lowry 1987). Also, many economic problems have been
treated in ancient Greek literature: e.g. Aristotle's approach to the exchange process and
private property (The Nicomachean Ethics, Politics, etc.), Xenophons comments on the
division of labour (Cyropaedia), as well as Platos remarks on the same subject
(Republic, Laws, etc.) are considered by many authors (e.g. Milios and Karasmanis 1988)
to be some of the most famous ancient Greek contributions to economic thought.
The ideas of the so-called Socratic philosophers, i.e. Xenophon, Plato and
Aristotle on atomistic behaviour, division of labour, foreign trade, exchange, value,
interest, etc. have been often treated as the forerunners of modern views on these subjects
(Lowry 1987, 1979; Petrochilos 1999, 2002). As a consequence, most of the research that
has been conducted on the economic ideas of ancient Greek philosophers focuses on the
Socratic philosophers, as well as on Hesiod, Aristophanes and Thucydides and, as a
result, very few references have been made to the works of other ancient Greek
philosophers, and more specifically of Democritus, who is mainly known as the father
of atomic theory.
According to Burnet (1968, p. 157) Democritus, was one of the greater writers of
antiquity. Zeller, the well-known author on ancient Greek thought, characterises
Democritus as superior to all earlier and contemporary philosophers in wealth of
knowledge (Russell 1975, p. 82). Also, he stressed that the Greek philosopher was a
universal mind who embraced the whole of the philosophical knowledge of his time, and
in this respect can be compared only with Aristotle (Zeller 1969, p. 65).
The purpose of the present paper is twofold. Firstly, it makes an attempt to
demonstrate that Democritus expressed many interesting economic and psychological
ideas some of which are identical to those of the Socratic philosophers (De Roover, 1974;
Taylor, 1955; Robertson and Taylor, 1957). Secondly, it tries to give a partial answer to
Michaelides, P, Kardassi, O. and J.Milios 2
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
the question as to whether, or to what extent, these economic ideas of Democritus could
be regarded as the early formulation of notions typically belonging to the theoretical
system of economic science.
The structure of the paper is as follows: Section 2 presents a brief biographical
note on the life and works of Democritus. Section 3 presents the main economic and
other related ideas that are attributed to the ancient Greek philosopher. Section 4 presents
what we consider to be the affinity and influence of Democretian ideas to Classical
Political Economy. Finally, section 5 concludes the paper.

2. Democritus: A Biographical Note

Democritus, the unknown man as Burnet (1968, p. 157-158) named him, was born
between 460-470 B.C. in Abdera, Thrace. His family was rich and he inherited an
important fortune, the greatest part of which he spent on his theoretical and mainly
empirical education (Marx 1977, p. 75). He travelled a lot in search of knowledge
(Sarton 1966, p. 252) and visited many famous, at the time, cultural centres of the world,
such as Egypt, Babylonia, Persia, etc. (Diels 1954).
His works included mathematics, physics, astronomy, ethics and poetry. Only a
small part of his fragments was preserved and some were found either in the works of
Aristotle, Diogenis Laertius and Stobaios, or under the name Democrates.
1

There is no doubt that it is a great loss for philosophers, scientists and economists,
that Democrituss writings have not been preserved throughout the ages. Following
Karayiannis (1988, p. 371), this could be due to the Epicurean philosophers who did not
wish them to be saved and probably did not care to multiply copies of a writer whose
works would have been standing testimony to the lack of originality that marked their
own system (Burnet 1968, p. 157). [T]he considerable number of fragments that have
survived [] are nearly all taken from the ethical works of Democritus (Kirk and Raven
1957, p. 404), on which the present paper is based.
2


1
According to Sinclair (1967, p. 65), the later fragments are of questionable authenticity.
2
Some authors (e.g. see Havelock 1957, p. 126) believe that Democritus wrote in a period when readers were still
outnumbered by listeners. It is thus not surprising that he compressed his ideas.
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Thrasylus classified his writings in 5 categories of 13 (Diels 1954, p. 90-2) or 15
(Mullachius 1883, p. 372-7) tetralogies. Following Karayiannis (1988, p. 371), this
caused his characterisation as pentathlos philosopher (physics, mathematics, technical
subjects, music and ethics), while, according to Spiegel (1971, p. 13), Democrituss
writings also include a treatise in Economics.
Democritus was a very educated person
3
and earned the esteem of his fellow
citizens and his contemporary writers. He spent his life in peace, always expressing a
pleasurable attitude, a characteristic which made his compatriots, as well as many
contemporary writers, call him the laughing philosopher (e.g. Gomperz 1969, p. 368;
Guthrie 1965, p. 409; Avtzis 1969, p. 13). He died at a very old age, probably over a
hundred years old (Karayiannis 1988, p. 372), without however leaving behind him a
distinguished philosophical school, like the one of Plato in Athens (Windelband and
Heimsoeth 1980, p. 117). The philosophers Methodoros, Anaxarchus and Nausiphanes
are considered by many authors (e.g. Zeller 1969, p. 69) as Democrituss disciples.

3. Democrituss Main Ideas

General Laws

Democritus followed and developed the cosmic theory of his teacher Leucippus, who
taught that everything that exists consists of atoms and vacuum. In particular he enlarged
this theory, stating that the universe was made up of two parts, the plenum (full) or
matter and the vacuum (void) or empty.
4
Also, he followed the empirical method
for the establishment of his theories, as well as for the verification of his conclusions
(Marx 1977, p.75). He stated that in reality we know nothing, for truth is in the depths
(Diels 1954, fr. 117), and second, he declared that everything is driven by necessity and
causality, adopting his teachers Leucippus beliefs that nothing occurs at random, but
everything for a reason and by necessity (Kirk and Raven 1957, p. 413).



3
Even Aristotle wrote that Democritus had studied everything (Papadopoulos 1982, p. 8).
Michaelides, P, Kardassi, O. and J.Milios 4
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The Psychology of Pleasure and Pain

Democritus conceived the existence of various material wants and needs as the main
cause of important economic phenomena (e.g. the division of labour). However, one can
only find only a few interesting ideas concerning rational behaviour for the fulfilment of
psychological and economic needs, as also other authors have noted (e.g. Karayiannis
1988, p. 374).
More specifically, Democritus attributed rational economic behaviour of
individuals to psychological grounds, i.e. to the comparison between pleasure and
pain and declared that the best thing for a man is to pass his life so as to have as much
joy and as little trouble as may be (Diels 1954, fr. 189), and thus should be pursuing
eudemonia
5
, which is derived from the well being of the household (Diels 1954, fr.
140). In addition, he stated that happiness is a property of the soul, as is unhappiness
(Diels 1954, fr. 170) and thus the criterion between the advantageous and the
disadvantageous is pleasure and displeasure (Diels 1954, fr. 188; Voegelin 1957, p.
300), which practically means that the individual should be in a position enabling him to
balance between the various degrees of (dis)pleasure.
It seems that Democritus considered that the ultimate end of an individual is the
fulfilment of a powerful psychological incentive, namely the pursuit of eudaimonia,
which according to him is attributed to the equilibrium of soul (psyche) and is achieved
through moderation. According to this psychological principle, he stated that the
(economic) actions of individuals should as well have as an end a moderate and not
an extreme material reward (Diels 1954, fr. 3, 102, 285): An individual should always
evaluate his economic actions and behaviour through the criterion of the limit between
the beneficial and the non-beneficial (Diels 1954, fr. 188).
6

The two philosophical notions, pleasure and pain, which were first put forward by
Democritus, were later adopted and further developed by Democrituss famous disciple
Protagoras (Lowry 1981, p. 813), and, of course, Plato (Lowry 1998, p. 14).

4
For more about Democritus atomic theory see Kirk and Raven (1957), Gomperz (1969) and Guthrie (1965).
5
Aristotle called it superior pleasure (Eudemian Ethics, 1214a, 5-10).
6
Aristotle called this limit norm (Nicomachaean Ethics, 1105a, 1-10).
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Democritus identified these two notions, namely pleasure and pain, with goodness
and evil (Boas 1961, p. 53), which although they were developed as part of his ethical
and psychological teaching, could alternatively be applied to the field of economic and
social decisions of individuals as well.
7


On (Over)Consumption

Democritus was against overconsumption and the wasteful use of goods (Kanellopoulos
1985, p. 67). e wrote that it is a useful thing for someone to know when he must save,
suffer hunger or spend much (Diels 1954, fr. 229) and connected this forms of behaviour
with ethical virtue and the moderation of consumption and wealth and not with
speculative actions. As we have seen, he believed that economic actions must have a
moderate and not an extreme psychological reward (Diels 1954, fr. 3, 102, 285) and
declared that the most pleasant things become unpleasant if moderation does not
prevail (Diels 1954, fr. 233), because moderation increases and enlarges pleasures
making them stronger (Diels 1954, fr. 211).
It is obvious that Democritus related satisfaction with a moderate and not an
increasing or maximum consumption, since he conceived the moderate and not the
extreme movements of the soul (i.e. psyche) as precondition for happiness. He wrote
(Diels 1954, fr. 191): Cheerfulness comes to man through moderation and enjoyment
and harmony of life; excess and defect are apt to change and produce great movements in
the soul (Sarton 1966, p. 253). e combined the principles nothing in excess and
nothing in shortage, to claim that he did not like the more or less normal, since
symmetry in all things is good (Diels 1954, fr. 102). Conclusively, he considered that a
moderate rate of consumption produces great happiness, while a high rate of consumption
produces great pain (Diels 1954, fr. 231).
8




7
Aristotle defined goodness as a useful and pleasant thing and evil as a harmful and unpleasant one (Nicomachaean
Ethics, 1104b, 35-40).
10
Democritus student Protagoras, enlarged the views of his teacher and connected the intensity of the souls
movements with the different degrees of utility and pain (Lowry 1981, p. 816; Plato: Protagoras, 356a-b) developing
several basic elements (Lowry 1981, p. 816; Lowry 1987, ch. 2; Petrocilos 2002, p. 602).
Michaelides, P, Kardassi, O. and J.Milios 6
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On the Heterogeneity of Pleasures, Wealth, Justice and Democracy

Democritus insisted on the superiority of spiritual, moral and psychological pleasures as
opposed to material ones and opposed the chrematistic actions of individuals
(Karayiannis 1988, p. 382). He wrote: Happiness doesnt reside in cattle or gold: the
soul is the dwelling place of ones good or evil genius (Diels 1954, fr. 171) and opposed
the material motive of increasing money property: He who is the slave of money can
never be righteous (Diels 1954, fr. 50).
It is obvious from his overall opposition to overconsumption and the
accumulation of wealth that he rejected the profiteering function of the market
(Karayiannis 1988, p. 382). He argued that in every man, the desire for wealth is
perpetual; when it has not been acquired, it corrupts men, when it has been acquired, it
worries men with its concern, when it has been lost, it sorrows men (Diels 1954, fr.
25B). Additionally, when the passion of wealth does not find satiation it becomes worse
than the greatest poverty because the stronger the desires are, so are the privations (Diels
1954, fr. 219).
According to Democritus, every economic transaction should be based on justice;
He wrote: Justice is to do what should be done; unjustice is not to do what should be
done, but to evade it (Diels 1954, fr. 256). Democritus was against the material riches
which resulted from transactions that aimed at the accumulation of wealth exceeding the
absolutely necessary goods of life.
9
Above this level, he believed, wealth was the effect
of an incurable psychic disease like gangrene (Diels 1954, fr. 281).
Following Karayiannis (1988, p. 383), Democritus stressed the shameful
behaviour of man concerning unfair wealth; he gave a direct correspondence between the
decrease in mans virtue and the increase of unfair exchange and he emphasized unfair
exchange as a mark of the moral death of man. Thus, Democritus considered the
elements of virtue and morality of man as the sufficient keys, which ensure what he
considered to be fair economic operation. He wrote: Wealth without understanding is
not a safe possession (Diels 1954, fr. 77). According to Trever (1978, p. 17), Democritus

9
Aristotle was also against unfair transactions, which he called profiteering (Nicomachean Ethics, 1232a, 15),
while Plato, as well, believed that the moderate level of wealth must be produced only through fair action (Laws, 661b).
Michaelides, P, Kardassi, O. and J.Milios 7
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
was the forerunner of Socrates in his insistence upon right use as a criterion of
wealth.
10

It is not by chance then that the Abderetian philosopher never examined the
function of the market, or the formation of prices and distribution of products
(Karayiannis 1988, p. 383). He only wrote about the precondition of equal advantages as
a fair starting point of economic operation.
11

Democritus was a supporter of democracy and declared that the poverty of
democracy is better than the prosperity which allegedly goes with an aristocracy or
monarchy, just as liberty is better than slavery (Diels 1954, fr. 251). He was also of the
opinion that the citizens, mainly the rich ones, should show altruistic behaviour and
stated: If the rich and influential can bring themselves to lend the poor and help them,
herein lies pity, an end to isolation, friendliness, mutual aid, unity among citizens, and
other blessings such as no man can enumerate (cited in Freeman 1946, p. 321).
12
Such a
behaviour can be strengthened by the increase of friendship among citizens, Democritus
(Diels 1954, fr. 186) wrote.
13
Finally, the establishment of homonoia required, according
to Democritus, a moderate and not an extreme economic inequality among the citizens.
14


On the Division of Labour and Productivity

One of the most interesting economic ideas of Democritus is related to the division of
resources. Following Gordon (1975, p. 14) Democritus is the first in a long line of
thinkers to argue the superior efficiency achieved by a division of resources. According
to Democritus, the division of labour was caused by the different physical inclinations of
men (Karayiannis 1998, p. 384) with the purpose of increasing their creative power (just
like animals did) (Diels 1954, fr. 154) and recommended that everyone should work

10
Plato in Laws (727A) and Xenophon in Oeconomicus (ch. I, 7-8, 13-14 and ch. II, 2-3) expressed similar views.
11
Aristotle has also mentioned this advantage (Eudemian Ethics, 1242b, 15-20).
12
Xenophon as well, believed in the necessity of altruistic behaviour (Oeconomicus, ch. XI, 9-10).
13
Petrochilos (2002, p. 602) writes that Protagoras, Democritus student, enlarged his teachers views and considered
dike (justice) and aidos (shame) as the two most divinely instilled elements in mankind which make civil society
possible (Lowry 1987, p. 33). Todd Lowry states that [I]f one accepts these concepts as meaning a sense of order
and mutual sympathy, one gets a clearer picture of Protagorass social philosophy, and it is appropriate to suggest the
importance of familirizing oneself with Protagorass myth in order to understand Adam Smiths concept of fellow-
feeling or human sympathy in his Theory of Moral Sentiments (Lowry 1987, p. 33).
14
Plato expressed very similar beliefs (Laws, 679B-C).
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according to his own abilities for the completion of a job (Diels 1954, fr. 270).
Furthermore, he related this division of labour to their happiness, and suggested that they
should not engage in various works but in only one, with which they are satisfied (Diels
1954, fr. 3).
15
Finally, Democritus stated that practicing, exercising, experiencing and
teaching in depth and not in extent are equally important to the increase of labour
productivity with the physical skills (Diels 1954, fr. 56, 59, 242).
16


4. Democretian Philosophy and Classical Political Economy

There are two main approaches on whether (or not) the economic ideas of Greek
philosophers have been of significance to modern economic thought: a) Ancient Greek
thought is regarded as the beginning of Political Economy (see e.g. Foley 1974; Lowry
1987).
17
; b) Greek Economic thought is regarded as common-sense description of ancient
Economy. (e.g. Rubin 1979; Roll 1989).
18
Another version of this approach supported by
Finley (1978) and Schumpeter (1954), bases its argumentation on the distinction between
economic analysis and the observation or description of specific economic activities
(Finley 1978, p. 26), claiming that the economic ideas of ancient Greeks have always
been descriptive.
19


15
Plato seems to have adopted this view (Republic, 370A-B).
16
Xenophon (Oeconomicus, ch. VII, 41, ch. XII, 4), Plato (Philebus, 56A, Laws, 643C) and Aristotle
(Nicomachean Ethics, 1103a, 30-35) adopted similar views in their works.
17
In this context, for instance, it has been argued that some formulations of Adam Smith concerning the division of
labour depend on the corresponding formulations of certain Greek philosophers (Foley 1974, 1975). The concept of the
division of labour in the works of Xenophon, Plato and, of course, Adam Smith is also discussed in Todd Lowrys very
influential works, who suggests that the hypothesis of an ancient Greek influence and contribution to the concepts of
Classical Political Economy is supported by the fact that Plato clearly understood quantitative efficiency when he
recommended the division of labour in the Republic (Lowry 1987, p. 72). As a result, the author advocates in favour
of Charles R. Fay's judgment that both the Theory of Moral Sentiments and the Wealth of Nations were influenced by
the classics and adds: William R. Scott's work also supports this thesis (Lowry 1987, p. 72). Lowry has argued in
earlier publications (Lowry 1974; 1981) that Political Economy's conception of circular flow has its roots in
Pythagorian ideas and the Platonic tradition (Lowry 1974), while the theory of quantitative subjective value was
worked out in ancient times in great detail with little reference to exchange or commercial values. A presentation of this
abstract analysis is found in Platos dialogue Protagoras (Lowry 1981, pp. 812-13).
18
Souchon was the first who had claimed that the Ancient Greek contribution to economics was minimal (Sideris 1941,
Petrochilos 1999, 2002). According to Gray (1980) there are two reasons explaining the meager Greek contribution to
economics (Petrochilos 1999, p. 2). The first is the preoccupation of the Greeks with politics and ethics, which were the
worthier ends so that economics at best was viewed merely as part of ethical inquiry (Gray, 1980, p. 4). The second
reason was the existence of slavery, which rendered with the exception of agriculture the work of craftsmen
dishonorable (in much the same way the Physiocrats thought more than two thousand years later), and, thus, something
which was despised could not be regarded as a matter worth to be studied. For an excellent summary and critique of
such views see Petrochilos (2002).
19
This approach distinguishes Plato and Aristotle, as the major Greek thinkers in the field of economic ideas, but it
considers their contribution to be of low analytical value: In Aristotle we see the first separation and reunion of the
positive and the ethical approach to economic process. His is a view of society similar to Plato's [...]. It was the ethical
Michaelides, P, Kardassi, O. and J.Milios 9
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
We agree with Petrochilos (2002, p. 600) that at the heart of the debate lies the
attempt [] to evaluate ancient societies and economies in terms of present-day criteria
and norms and to use the ancients as a battleground to resolve contemporary ideological
disputes.
To take part in this dispute, regarding specifically Democrituss ideas, one has, as
a first step, to answer the question of whether there exists a conceptual affinity between
these ideas and the notions on which (each different stream of) modern economic thought
is founded.
From the presentation of Democrituss main ideas in the previous Section of this
paper it can be concluded that a conceptual gap separates the ancient Greek philosopher
and modern economic thinking.

form of Aristotle's views, which served as the content for medieval theories of exchange: they found their first
extension in the theory of 'just price'. It was not until the rise of the classical political economy of the eighteenth
century that a positive theory of value was first developed (Roll 1989, p.35). In the case of the Aristotelian economic
views, Meikle (1995, p. 2) pointed out that there has been a chaotic interpretation of their meaning and suggests that
since the chaos is of recent origin, perhaps its source lies [...] in some feature of modern thought which was absent
from the thought of earlier times [...] it will have something to do with the modern subject of economics. Meikle
(1995) finds that Aristotle does develop a coherent theory of economic value, wealth, exchange and money. The
difficulty, however, is that this theory cannot be assimilated into what we call economics because it is based on
different metaphysical foundations from the Humean metaphysics on which modern economics is built. Meikle (1995)
argues that from an Aristotelian standpoint, ethics and economics are competitors over the same ground, as rival
sources of reasons for decision-making in the public realm, and they cannot be reconciled (Petrochilos 1999, 2002).
Schumpeter (1954) dismissed the economic thought of the Greeks as modest and claimed that those among the
classicists and economists who thought more highly of it were confusing it with their general philosophy than
(technical) economics. Consequently, Xenophon is treated in a footnote; Plato is found to be not analytical enough and
his discussion of the division of labour is considered as commonplace, while in Aristotle we find decorous, pedestrian,
slightly mediocre, and more than slightly pompous common sense (Schumpeter 1954, p. 57). Finley (1970, 1973), a
classicist and ancient historian dismissive of the ancient Greek economic thought claimed that all three of the major
philosophers, i.e., Plato, Xenophon and Aristotle have not contributed much to economics. Finley adopts largely the
Schumpeterian approach (Schumpeter 1954, pp. 57-60) in arguing that in the absence of the mass of exchange value
phenomena, it was simply impossible for the Greeks to engage in economic thought. Aristotle offered the rudiments of
analysis but he then becomes doubly troublesome wrote Finley (1978, p. 28). The main reason for Aristotle's failure
is, according to Finley, the simple fact that he never intended to study economics in the first place; he was mainly
interested in ethics and politics. Thus, he agrees with the Polanyi group (Polanyi et al, 1957), of which he was a
member, about the non-market features of the Greek economy.
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For example, Democrituss idea of eudemonia and the tension between pleasure
and pain on which it is founded has nothing in common with Benthams hedonic
calculus on which modern neoclassical theory is based. In contrast to Bentham,
Democritus considers different kinds of pleasures to be inhomogeneous, i.e.
hierarchically distinguishable, non compatible, qualitatively different and thus
quantitatively not comparable with one another. It is known from J.-S. Mills critique of
Benthams philosophical utilitarianism, that the rejection of the premise of a
homogeneous utility (connecting in a qualitatively similar way any rational person to
economic goods) renders the formulation of the neoclassical marginal utility approach
impossible. We may, thus, detect a notional link between Democritus and the philosophy
of J.-S. Mill, who argued that neither pains nor pleasures are homogeneous, and pain is
always heterogeneous with pleasure (Mill 1987, p. 282),
20
but not between Democritus
and Neoclassical economics.
A similar luck of notional affiliation may be concluded between Democrituss
nothing in excess principle and any modern economic idea of profit or utility
maximisation. We agree, therefore, with Karayiannis (1988, pp. 375, 377, emphasis
added) that no exact notion or principle such as the neoclassical one concerning the
rational use of limited resources for the achievement of multiple ends could be found in
the writings of Democritus.

20
Based on the idea of inhomogeneous pleasures, J.-S. Mill (1987, p. 281) writes: Better to be Socrates
dissatisfied than a fool satisfied. Compare the following formulation by Democritus: Happiness doesnt
reside in cattle or gold: the soul is the dwelling place of ones good or evil genius (Diels 1954, fr. 171).
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The same conclusion may be reached in regard to the notional content of the
division of labour in Democrituss writings on the one hand and Classical Political
Economy (Adam Smiths The Wealth of Nations) on the other. Analogously to Platos
Republic
21
, the division of labour appears to be the par excellence concept, which could
connect Democrituss writings with Political Economy. Firstly, Democritus considered
the division of labour as the outcome of one basic principle (Karayiannis 1988, p. 384):
he argued that men have been taught from various animals how to practice different jobs
(Diels 1954, fr. 154) and thus, men adopted and followed the animals division of labour
and resources with the purpose of increasing their creative power (Karayiannis 1998, p.
384). The Abderetian philosopher believed that the division of labour was caused by the
different physical inclinations and skills of men (Karayiannis 1998, p. 384, emphasis
added). Just like the similar principle developed later by Plato, who declared that one
man is naturally fitted for one task, and another for another" (Republic, 370B), it is
obvious that Democritus practically implied that different people have different talents
with regard to work. Certainly, this does not mean that every man is free to do what he
wishes, but that he is obliged to fit to the class and do the job that is appropriate to him,
and thus he recommended to the masters of slaves to use everyone of them according to
their abilities for the proper completion of a job.
The Democretian division of labour regards that different people do qualitatively
different labour. Thus, labour is not homogeneous, for Democritus (as neither was for
Plato). That is the reason why Democretian theory (just like the Platonic one), cannot
constitute the basis neither of an institutionally (i.e. typically) non-hierarchical society
(all citizens are equal), nor of a value theory (Milios and Karasmanis 1995, p. 57).

21
See Milios and Karasmanis (1995).
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If we suppose that Smith adopted Democrituss idea about the economic
significance of the division of labour (an idea which is though common in all economists
before Smith, for instance Quesnay, Turgot, etc.), we have also to accept that Smith
turned upside-down Democrituss conceptual structure, since Smith regards the natural
talents of different people to be not [] the cause, as the effect of the division of
labour (Smith 1981, I ii 4, p. 28). For Smith, the cause of the division of labour is mans
disposition to truck, barter and exchange (Smith 1981, I.ii.5, p. 28). Smith was aware
of the fact that the division of labour acquires its fully developed form only in a society
with fully developed market relations
22
and therefore he is careful to point out that
Division of Labour had not proceeded very far [in ancient Greece] (Scott 1940, p. 96).
Finally, Smith advocates for a division of labour, which enables the maximum
possible mobility of the work-force, while Democritus relates, as seen, the division of
labour which takes place according to the physical and spiritual inclinations of
individuals with their happiness and satisfaction.
It is apparent that a theoretical diversion is hidden behind a first (phenomenal)
convergence of Deomcritus and Smiths formulations, with respect to the division of
labour. To summarize we could say that for Smith the division of labour is the cause that
explains human inclinations and capacity, for Democritus this is the result.
Our conclusion that Democrituss ideas do not constitute the forerunners of
Classical (or Neoclassical) economic notions does not mean that we consider them not to
have influenced modern economic thought. Such an approach to ancient Greek
philosophy would underestimate its importance and influence on the formulation of the
philosophical roots of Classical Political Economy. In other words, even if ancient Greek
thought contains only fragments of an economic and theoretical analysis, this does not
necessarily mean that it has not influenced, in a philosophical-epistemological sense, the
formulation of the notions of Classical Political Economy (Milios and Karasmanis, p. 53).
In fact, Political Economy is always connected with a philosophical as well as a
sociological conception of science and society.

22
"[T]he Division of Labour is limited by the Extent of the Market" (Smith 1981, I.iii.1, p. 31).

Michaelides, P, Kardassi, O. and J.Milios 13
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
It is first of all obvious, that Political Economy (as well as every other social
science), owes to Greek Philosophy the conception of Man as the Subject of History and
of all Social Process: This anthropological philosophical conception, being the antipode
to all kinds of theological approaches, connects ancient Greek thought with the
enlightenment and modern age. In this manner, ancient Greek philosophy could be
regarded as a major contribution to the formation of the epistemological presuppositions
of Political Economy (Milios and Karasmanis 1995, p. 62).
The ideas of the sophists and Democritus were important for putting mankind in
the centre of the intellectual debate (Baeck, 1994, p.45). Democritus, besides Socrates
(Petrochilos 20002, p. 603), was the first to move from a philosophy of nature to a
philosophy of mankind. The central point of the Democretian philosophy seems to be the
prevalence of logic and justice over society; according to this Democretian viewpoint, all
social issues, including political and economic relationships, become essentially ethical
issues.
Moreover, we can identify a much more particular epistemological influence of
ancient Greek and more specifically of the Democretian philosophy on Classical Political
Economy: namely the conception that (economic) phenomena possess an inherent, law-
determined causality and regularity (a concept also shared by the natural sciences), which,
though, does not appear to the direct observation of the agents of production, but
constitutes the hidden causal core of the directly observable phenomena (Milios and
Karasmanis, 1995). The aim of science is, therefore, to reveal this hidden essence of
observable processes.
According to Democritus everything depends on causality and necessity
(Karayiannis 1998, 374). On this principle, the Abderetian philosopher declared that the
whirl or vortex is called necessity because it produces the necessary mechanically and
theoretically determinable (Kirk and Raven 1957, p. 405). This major epistemological
conception, probably helped Smith and later Ricardo to formulate an objective theory of
value (the theory of labour-value). The labour-value is the law-determined regularity,
which is hidden behind (and governs) the directly observable exchange patterns of useful
things.
Michaelides, P, Kardassi, O. and J.Milios 14
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
Smith uses the adjective natural to denote either that a situation corresponds to
the natural right of the individual, i.e. to the obvious and simple system of natural
liberty (Smith 1981, IV.ix.51 p. 687), or that an economic phenomenon is governed by a
law-determined regularity, which exists independently of the will or the knowledge of the
participants to economic life: natural price, natural wage, natural profit, etc. (see Smith
1981, I. vii, pp. 72-81). In its second meaning, the notion natural refers also to a
distinction between the directly observable and the invisible-essential side of economic
processes, as indicated by the famous notion of the invisible hand (Milios and
Karasmanis 1995, p. 62).
This theoretical conception of a necessary distinction between the observable
phenomena and their invisible, unaltered essence is a central feature of Democritus
philosophy. He deeply distinguished the objective and subjective phenomena and
declared that there was a hidden essence behind every action since in reality we know
nothing for truth is in the depths (Diels 1954, fr. 117). He declared that there are two
forms of knowledge, one genuine and one obscure. To the obscure one belong all
forms of appearance: sight, hearing, smell, taste and touch. To the genuine knowledge, as
Boas (1961, p. 39) correctly observed, Democritus included an attempt to show the
causal relation between reality and appearance.
23

It is apparent from the above discussion, that we consider this Democretian
concept of the invisible and genuine knowledge, to be a cardinal epistemological
thesis. This idea, possibly influenced the new scientific revolution starting with Galileo,
Kepler, etc., who accepted that behind the natural processes there are regularities and
laws that can be expressed quantitatively and mathematically. The theory of objective
labour-value seems also to have been influenced by it.

Conclusion

This paper argues that Democrituss thought was important for the development of
certain economic ideas which can be found also in the writings of later Greek
philosophers. It is, therefore, fair to consider him as an influential Greek philosopher

23
Plato adopted and formulated a very similar approach (Republic, 516B, 517C, 523B, 525C, 529B, etc.)
Michaelides, P, Kardassi, O. and J.Milios 15
Seventh Conference of Greek Historians of Economic Thought, University of Athens, 27-28 May 2005
whose works need further study. In this manner, we may conclude that Democritus who,
like all other ancient Greek thinkers, developed his economic ideas only as part of his
philosophical, political and psychological teachings, is a fine example showing that
ancient Greek philosophy could be regarded as a major contribution to the formation of
the epistemological presuppositions of Economic Science, making Man the Subject of
History and of all Social Process.


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