Government

The Athenian government did not interfere much in the economic life of its citizens. Even essential imports, such as wood for shipbuilding, seem to the have been left entirely to private initiative, though Athenian sea power in the 5th century must have put effective pressure on traders to carry their goods to Athens instead of elsewhere. But whatever the role of Athenian power, it is still clear that Athens had no economic policies. There was, however, one predictable exception: the import of grain. Only this trade was regularly discussed in the assembly. Grain imports were literally a matter of life or death. In the 5th century, there was a close relationship between imperial power and the grain trade: the Athenian fleet protected the trade routes, and Athens even had special magistrates called Hellespontofulakes, “those guarding the Hellespont,” who were charged with keeping open that narrow passage through which flowed the grain from the Black Sea region. In the 4th century, Athens had lost much of its power, and safeguarding the grain imports became ever more difficult. The polis went to great lengths, pampering rulers from the Black Sea region and promulgating severe laws such as the law that mandated the death sentence for any Athenian citizen who shipped grain to any port other than Athens. The polis also took responsibility for the grain after it had arrived in Attica: special officials kept an eye on the grain as it moved from the harbor to the retailers, and made sure that it was offered at “an honest price.” If a shortage seemed imminent, the polis tried to buy grain in the open market in order to supply Athenians with grain at subsidized prices. For this purpose, the polis taxed those who could afford to pay some extra: if food was distributed, whether subsidized or for free, this was always because of gift giving, more or less voluntary, by the wealthy.

The polis of Athens got its income, if we leave aside the tribute that the 5th-century empire brought in, mainly from levying taxes. The non-citizens resident in Athens paid a yearly tax, and they and the wealthier citizens paid a special property tax in times of war. For citizens, this was the only direct taxation. They were taxed in this way very infrequently in the 5th century, but in the next century these war taxes increased in number, and there was even a small tax office instituted in order to convince the wealthier citizens to assist the polis on a regular basis. Indirect taxes were very common, and levied on everything from the slave trade to brothel keeping. They were usually farmed out to the highest bidder. The most important indirect taxes were market and harbor duties: in 402-401 BC, a syndicate of tax farmers paid the polis the enormous sum of 36 talents in order to be allowed to levy a 2% harbor duty on all imports and exports. As they must have expected to make a profit, this points to a huge trade in Piraeus. The polis also collected legal costs and fines, and leased out state property, some land, but more importantly mining concessions at Laurion. If income fell short, the polis used to borrow money. These often quite substantial sums of money were lend to the polis by temple treasuries.

The expenses of the polis were as diverse as its sources of income. First, there were the costs of the democracy to bear, the salaries of magistrates and officials on the one hand, and the pay for those actively pursuing their democratic rights on the other. Comparable to the political pay is the theorikon, literally “the viewing money.” Originally, this was a subsidy that compensated for the loss of a day’s wages when one went to the theater in order to see the plays performed that were an integral part of the festival of the Dionysia (to be discussed below). In the 4th century, the theorika turned into “festival pay” that was handed out on ever more festive occasions. For many Athenians, such financial support must have been most welcome, but the theorika never were intended as relief for the poor: all citizens could claim these benefits. Of the other expenses in peacetime, the largest were the building costs of public buildings, above all, temples. Apart from such building schemes, the polis spent but little on public amenities. It was only in Hellenistic days that some outlay on public schools or on a medical doctor employed by the polis is seen. The religious duties of the community involved huge expenses, but here we encounter many liturgies. Obviously, military operations were extremely costly: to field an army, the troops had to be paid, whether it was a citizen army, or, as was increasingly the case, an army of mercenaries. In Athens, large sums were involved in the building of warships: only the fitting out of an existing ship was a liturgy, the trierarchy (as mentioned earlier). When a ship was in service, the polis had to pay the rowers, although in practice, certainly in the 4th century when money was tighter, the trierarch was supposed to shoulder that considerable burden as well. As in the case of the provision with grain in times of need, in military matters the polis tended to dip deep into the pockets of its rich.