XENOPHON'S POROI AND THE FOUNDATIONS OF POLITICAL ECONOMY

In the Poroi, Xenophon's radical solution to Athens' financial problems includes several ideas vital to the field of political economy. His identification of justice with the pursuit of wealth provides an alternative to the power politics that for half a century had taken Athens into a series of self-destructive imperial wars. He supports his idea of economic growth with arithmetic calculations, and he connects the results to traditional Greek views of public rewards and benefits. From this he crafts a goal-directed strategy for economic growth designed to foster good will through incentives rather than coercion. This brief commentary on the text (in translation) shows how Xenophon's positive claims are based not on a modern demand-side conception of economic stimulation, but rather on building productive capital. He is a proto-Saysian, not a Keynesian. Xenophon's proposals range beyond the polis into a pan-Hellenic vision of increasing trade that is centred on Athens, monetized with Athenian coinage, and idealized into the common peace that the Greeks had so long desired but so little achieved.