economics
Table of Contents
Collected Rants of Mr O
Romans
Fun historical fact that has nothing to do with contemporary politics…
After winning the civil war, Julius Caesar time as dictator of Rome was a period of great reform for the city of >Rome. Caesar lowered taxes for citizens, improved public services, and invested in a vast infrastructure building >program that created jobs for the unemployed. He reformed land acts to settle legions that fought on both sides of >the war and expanded the Senate to make room for his political rivals, whom he pardoned, to continue their >careers.
After the civil there was a debt crisis in Rome caused by the collapse of economic activity because of lack of men >to work that had also borrowed to meet their military obligations. Lenders demanded repayment of loans and real >estate values collapsed. Worse the debtors were being forced to sell themselves into slavery to repay their debts. >This repayment of debt was remitted to the state and contributed to deflation (value of money increased as value >of everything else decreased) and a serious shortage of coinage in circulation as people hoarded cash. Caesar >ordered that property must be accepted for repayment at its pre-war value and reinstated a previous law which >forbade the holding of more than 60,000 sesterces in cash by any one person. Caesar later cancelled all interest >payments due since the beginning of 49 BC and permitted tenants to pay no rent for one year.
The debt reform affected senators that had borrowed heavily to finance their political careers and the forced sale >of their property caused property values to plummet leaving them without property and still holding enslaving >debt. This would have angered them.
So a second reform followed where property values were fixed and sales organized by the state. Wealthy Romans that >had loaned money backed by property, were happier without the collapse of property values - they could repay their >debt. Those with money were not allowed to accumulate the property backing the loans for a fraction of it's actual >worth, and sell those in debt to them into slavery for money. This would have angered them.
The far bigger problem was the ordinary Roman citizens who had fallen into debt by doing the “right thing” and >fighting during the wars. They were being forced to sell themselves into slavery to repay their debts having lost >everything. Caesar attempted to do the right thing and passed a law that allowed them to repay their debts using >inflation, or cheaper, government-issued coins.
This attempt to spare the average Roman citizen angered all of the wealthy Romans as it was a direct transfer of >their wealth to the citizens.
Caesar was assassinated, stabbed 23 times, by 60 conspirators in the Senate on the 15th of March 44 BC.
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economics.txt · Last modified: 2024/01/23 03:37 by melm