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[...]... control unruliness and corruption, and finally, in Sect 1.3, we explain the way in which the city–state of Athens intervened in order to ensure social cohesion and to prevent the appearance of extreme individidualism G.C Bitros and A.D Karayiannis, Creative Crisis in Democracy and Economy, DOI 10.1007/97 8-3 -6 4 2-3 342 1-4 _1, # Springer-Verlag Berlin Heidelberg 2013 1 2 1.2 1 The Athenian Democracy The Invention... first in those countries where the seeds had been G.C Bitros and A.D Karayiannis, Creative Crisis in Democracy and Economy, DOI 10.1007/97 8-3 -6 4 2-3 342 1-4 _2, # Springer-Verlag Berlin Heidelberg 2013 23 24 2 The Classical Democracy sown, namely, in the countries of the West During the second half of the nineteenth century, the governments in these countries adopted increasingly democratic governance in. .. Organisation and Operating Principles of Democracy 13 Athenians’ way and quality of life, was something the citizens earned by respecting the laws and by living according to the customs that prevailed at the time The education in the school and in the family; the competition in daily life for social approval and distinction (fame), for themselves and their descendants; and the trust placed in the meritocratic... with the indictment of profiteering To discourage abuses by market participants, the city maintained various agencies charged with (a) checking against the adulteration of sold goods (function performed by agoranomoi); (b) checking against adulteration of coins and measures of weight, volume or other standards (function performed by metronomoi) and (c) guarding against stealing wheat and other grains from... resources In this chapter, we explain how democracy combined with a free market economy operated so efficiently that even today the case of ancient Athens remains an endless source for moral, institutional and other guidance to modern problems More specifically, in Sect 1.1, we focus on the organisation and the principles under which the Athenian democracy and economy operated In Sect 1.2, we refer to the institutions... relatively moderate inequality in the distribution of income and wealth.60 City–state authorities intervened in the economy under two conditions: the first when the citizens themselves decided after due deliberation which restrictions were necessary and how deep into the economy they would extend, and the second, in instances where interventions supported the interests of the general public and not those... based on free and voluntary exchanges In order to control manifestations of extreme individualism and to preserve social cohesiveness, the exchanges were conducted in a context of values and institutions that tamed the innate selfish behaviour of human beings More specifically, 44 This is what Finley (1981) and his associates have supported But, according to Bitros and Karayiannis (2008) and a few other... either in daily tasks within the business or deciding on strategic matters regarding investments.52 The voluntary exchanges conducted by the Athenians through a continuum of markets gave shape to a money- and credit-based economy, where the owners of resources were induced to direct them to their most effective uses, both from a private and a social point of view For this reason, it is not surprising... increase in the importance of the hoplites and a decrease in that of the horsemen This shift, in conjunction with the realisation that the middle and lower classes were most populous and that through the development of commerce and handicraft, their incomes increased rapidly, resulting in their being able to finance their armoury, made it apparent Isocrates, Panegyricus, 23–4 Lysias, Epitaph to Corinthians,... criminality and other phenomena of extreme individualism which rupture the web of society Contributing factors to this success include the kind of education they received and the exercise of social pressure to behave in accord with morals and informal rules that prevailed As we stressed above, through incentives and disincentives embedded in the Athenian institutions, citizens were encouraged to support democracy . cohesion and to prevent the appearance of extreme individidualism. G.C. Bitros and A.D. Karayiannis, Creative Crisis in Democracy and Economy, DOI 10.1007/97 8-3 -6 4 2-3 342 1-4 _1, # Springer-Verlag Berlin. h0" alt="" Creative Crisis in Democracy and Economy . George C. Bitros • Anastasios D. Karayiannis Creative Crisis in Democracy and Economy George C. Bitros Professor of Political Economy, Emeritus,. of Economics and Business Athens Greece Anastasios D. Karayiannis Late Professor of Economics University of Piraeus Piraeus Greece ISBN 97 8-3 -6 4 2-3 342 0-7 ISBN 97 8-3 -6 4 2-3 342 1-4 (eBook) DOI 10.1007/97 8-3 -6 4 2-3 342 1-4 Springer