Debt in Ancient Greece
During the Greek Dark Age, from 1200 to 750 BC, warlord chieftains dominated society, leading to the subjugation of much of the population. Although interest-bearing debt wasnʼt present, formal debt-collection procedures existed for wergild debts, mainly for legal restitution. These payments were made in movable assets and didn't play a fiscal role.
Interest-bearing debt arrived in Greece around the 8th century BC from Mesopotamia. Initially, interest was charged by and to outsiders, as it was considered ungentlemanly to charge interest to social peers. However, as Greek society succumbed to usury, aristocrats refrained from charging interest to each other through mutual-aid societies.
The adoption of interest-bearing debt coincided with the rise of oligarchies in Greek city-states. Powerful families blocked central authority to limit land appropriation and creditor claims, leading to the concentration of wealth in the hands of an aristocracy. This economic dynamic persisted throughout classical antiquity.
Debtors faced the loss of self-support and liberty due to land appropriation by wealthy families, particularly in Southern Italy. In response, “tyrants” and social reformers rose to overthrow autocratic regimes, instituting land redistribution and debt cancellation. Solonʼs reforms in Athens, including debt cancellation and the removal of absentee land ownership markers, aimed to address these issues but were short-lived.
After the 6th century BC, creditors gained strength, preventing further debt cancellations and land redistributions. Attempts by popular leaders to enact reforms were defeated, leading to Romeʼs conquest and devastation of Greece in the 2nd and 1st centuries BC.
🔭 This summary was human-edited with AI-assist.
