Text 6. The Roman Economy

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Agriculture was the backbone of the Roman economy. In Italy itself, farmers grew grain and planted olive groves and vineyards. Olive oil and wine were shipped to cities throughout the empire. As the empire expanded, olive oil and wine were also produced in Gaul, Spain, and Africa as well as Italy.

But on the whole, Roman farming methods were not very advanced. As a result, crops were small, and many people were needed to work the land. Four out of five people in the Roman Empire worked on farms.

Another reason for the poor performance of Roman agriculture was taxation. The emperors required farmers to give most of their surplus grain to the government in taxes. Farmers could not make money by selling surplus grain at a profit, and so they had little to spend.

One result was a limited demand for manufactured items. Modern industry employs so many people and produces so many items because there is a large market,or demand, for its products. In ancient Rome, most people could afford only simple clothes and inexpensive pottery. Only the wealthy could afford decorated pottery and fine jewelry. As a result, the market for such items was small.

Most manufacturing plants in ancient Rome were small. An example is the pottery shop in Arretium, one of the empire’s best-known manufacturing operations. It employed only about 50 slaves.

For all its accomplishments, the Roman Empire never developed a complex economy. It did not create large banks and other financial institutions. Instead, the Roman economy was mainly concerned with the basic task of feeding the empire’s soldiers and city dwellers. This same basic task made Rome the hub of an extensive network of trade routes.

Here’s how the Greek writer Aelius Aristides described Roman shipping in the A.D. 100s:

“So many merchant ships arrive in Rome with cargoes from everywhere, at all times of the year, and after each harvest, that the city seems like the world’s warehouse. The arrival and departure of ships never stops – it’s amazing that the sea, not to mention the harbor, is big enough for these merchant ships.”

Ships hauled goods, such as wine, grain, and exotic animals, to and from ports in every part of the Roman Empire. On land, carts pulled by oxen or mules and even caravans of camels carried such items as lumber, clothing, and household goods over the empire’s extensive system of roads. A side benefit was that trade brought news of other cultures and foreign places.

The most important item that the Romans traded for was grain. Wheat and barely were used in making the bread and other foods that formed most of the Roman diet. Grain was needed for people of the cities as well as army legions throughout the empire. Providing enough was a constant challenge.

Rome itself had become a city with about one million people by the A.D. 100s. The farmland around Rome could not grow enough grain everyone. Therefore, the city depended heavily on products imported form North Africa, Egypt, and Sicily.

An added problem was that as many as 300,000 people in the city of Rome were so poor that they could not buy grain. The government had to give it to them. Free handouts became important to the peace of the city. An emperor might face riots if he did not provide enough grain for the people.

Another 300,000 men in the army stationed in the empire’s provinces also had to be fed. Food was generally supplied by the provinces where the men were stationed. Then the government had to send more grain from other parts of the empire.

The largest industry in the empire was mining. Marble and other materials for the empire’s great building projects were mined in Greece and northern Italy. Gold and silver came from mines in Spain. Lead and tin came from Britain. The metals were needed to manufacture weapons and other items, including coins for trade within the empire. Metals were also exchanged for luxury goods from foreign lands.

Italian communities manufactured pottery, glassware, weapons, tools, and textiles for use in Rome and for trade throughout the empire. In contrast to farm products, however, trade in manufactured goods was limited.

The trade in luxury goods made up the smallest part of the Roman economy. Not many people had enough money for luxuries. However, traders traveled far beyond the borders of the empire to bring back unusual items for wealthy Romans.

Traders went south into the Sahara and brought back ostrich eggs and ivory, which were strange and wonderful to the Romans. They went north and brought back blond slaves from the land that is now Germany. These blond slaves were so intriguing to the dark-haired Romans that some rich Romans even began wearing blond wigs. The traders also went into the Far East, bringing back silks from China, and spices and gems from India.