Economy of ancient Greece

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The economy of ancient Greece was defined largely by the region's dependence on imported goods. As a result of the poor quality of Greece's soil, agricultural trade was of particular importance. The impact of limited crop production was somewhat offset by Greece's paramount location, as its position in the Mediterranean gave its provinces control over some of Egypt's most crucial seaports and trade routes. Beginning in the 6th century BC, trade craftsmanship and commerce, principally maritime, became pivotal aspects of Greek economic output.

Greek soil has been likened to "stinginess" or "tightness" (Ancient Greek: stenokhôría, στενοχωρία) which helps explain Greek colonialism and the importance of the cleruchies of Asia Minor in controlling the supply of wheat. The olive tree and grapevine, as well as orchards, were complemented by the cultivation of herbs, vegetables, and oil producing plants. Husbandry was badly developed due to a lack of available land. Sheep and goats were the most common types of livestock, while bees were kept to produce honey, the only source of sugar known to the ancient Greeks. Up to 80% of the Greek population were employed in the agricultural industry. Not work followed the rhythm of the seasons: harvesting olives and trimming grapevines at the beginning of autumn and the end of winter; setting aside fallow land in the spring; harvesting cereals in the summer; cutting wood, sowing seeds, and harvesting grapes in autumn. In the ancient era, most lands were held by the aristocracy. During the 7th century BC, demographic expansion and the distribution of successions created tensions between these landowners and the peasants. In Athens, this was changed by Solon's reforms, which eliminated debt bondage and protected the peasantry. Nonetheless, a Greek aristocrat's domains remained small compared with the Roman latifundia.

While peasants and artisans often sold their wares, there were also retail merchants known as kápêloi (κάπηλοι). Grouped into guilds, they sold fish, olive oil, and vegetables. Women sold perfume or ribbons. Merchants were required to pay a fee for their space in the marketplace. They were viewed poorly by the general population, and Aristotle labelled their activities as: "a kind of exchange which is justly censured, for it is unnatural, and a mode by which men gain from one another." Parallel to the "professional" merchants were those who sold the surplus of their household products such as vegetables, olive oil, or bread. This was the case for many of the small scale farmers of Attica. Among townsfolk, this task often fell to the women. For instance, Euripides' mother sold chervil from her garden (cf. Aristophanes, The Acharnians, v. 477 478).

Direct taxation was not well developed in ancient Greece. The eisphorá (εἰσφορά) was a tax on the wealth of the very rich, but it was levied only when needed — usually in times of war. Large fortunes were also subject to liturgies which was the support of public works. Liturgies could consist of, for instance, the maintenance of a trireme, a chorus during a theatre festival, or a gymnasium. In some cases, the prestige of the undertaking attracted volunteers (analogous in modern terminology to endowment, sponsorship, or donation). Such was the case for the choragus, who organized and financed choruses for a drama festival. In other instances, like the burden of outfitting and commanding a trireme, the liturgy functioned more like a mandatory donation (what we would today call a one time tax), with the prestige of such a position and other elites' social pressure reducing non compliance. In some cities, like Miletus and Teos, heavy taxation was imposed on citizens. The diaspora was a progressive tax, as it was applied to only the wealthiest. The citizens could reject the taxation if they believed someone else was wealthier and not being taxed. The wealthier would have to pay for the liturgy. On the other hand, indirect taxes were quite important. Taxes were levied on houses, slaves, herds and flocks, wines, and hay, among other things. The right to collect many of these taxes was often transferred to publicans, or telônai (τελῶναι). However, this was not true of all cities. Thasos' gold mines and Athens' taxes on business allowed them to eliminate these indirect taxes. Subjugated groups such as the Penestae of Thessaly and the Helots of Sparta were taxed by the city states in which they resided.

Coinage probably began in Lydia around the cities of Asia Minor under its control. Early electrum coins have been found at the Temple of Diana at Ephesus. The technique of minting coins arrived in mainland Greece around 550 BC, beginning with coastal trading cities like Aegina and Athens. Their use spread and the city states quickly secured a monopoly on their creation. The very first coins were made from electrum (an alloy of gold and silver), followed by pure silver, the most commonly found valuable metal in the region. The mines of the Pangaeon hills allowed the cities of Thrace and Macedon to mint a large number of coins. Laurium's silver mines provided the raw materials for the "Athenian owls", the most famous coins of the ancient Greek world. Less valuable bronze coins appeared at the end of the 5th century. Coins played several roles in the Greek world. They provided a medium of exchange, mostly used by city states to hire mercenaries and compensate citizens. They were also a source of revenue as foreigners had to change their money into the local currency at an exchange rate favourable to the State. They served as a mobile form of metal resources, which explains discoveries of Athenian coins with high levels of silver at great distances from their home city. Finally, the minting of coins lent an air of undeniable prestige to any Greek city or city state.

The shopping centres in Ancient Greece were called agoras. The literal meaning of the word is "gathering place" or "assembly". The agora was the centre of the athletic, artistic, spiritual and political life of the city. The Ancient Agora of Athens was the best known example. Early in Greek history (18th century–8th century BC), free born citizens would gather in the agora for military duty or to hear statements of the ruling king or council. Every city had its agora where merchants could sell their products. There was linen from Egypt, Ivory from Africa, Spices from Syria, and more. Prices were rarely fixed, so bargaining was a common practice.