Decline and Fall
The rise of empires is always of great interest. But eventually they decline, they lose the magic ingredients that brought about their rise. But what makes them decline? How do they lose the magic ingredients that brought about their rise? Having followed the sometimes bumpy ride when Rome adopted many of the virtues of the market, we must now turn to its decline, and eventual fall.
The story falls into three parts. We begin with the third century when the cracks begin to appear. Money rears its ugly head: the coinage is debased, inflation rages, Emperor follows Emperor as inflation spreads its insidious poison.
Then comes what is in many ways the great turning point when two powerful emperors, Diocletian and Constantine restored a certain stability but abandoned the virtues of the market economy and thus became the fulcrum when Rome changed from being a market economy into what in many ways was a more primitive society when the sturdy farmer was replaced by serfs, tied to the land, and where the concept of freedom was lost. But in many ways, the reforms worked, and the fourth century saw a revival, but it was a revival of an economy very different from the economy that Rome had made its own.
But it was a false dawn, and in the fifth century, Rome fell, the barbarians poured over the borders and established very different societies. Much of Europe fell into a Dark Age, while in the east, the rising power of Islam saw the emergence of a very different form of power.
Today we are in the fortunate position that our revolution, the Industrial Revolution still continues, indeed thanks to the computer is showing a remarkable second wind. Yet decline and fall will come: but if we study the decline and fall of Rome, will we perhaps be able to mitigate or even postpone the decline and fall of our own remarkable revolution?