The economic collapse of the Roman Empire: history repeats itself

We are living in a difficult time, and it seems to us that something unique is happening now that has never happened in world history. That is a delusion. Almost always in history you can find close analogues of the ongoing events. Human nature has not changed over the millennia, people are subject to the same passions, desires and vices. Read Plutarch, and you will find in his descriptions of Roman and Greek politicians some portraits of people we know well. By the way, this is the author who wrote his books two thousand years ago. 

Are today’s economic crises unique?

Not at all. The Fiat economic system has not undergone radical changes since ancient Rome. Paper and non-cash money appeared, but the fiat ideology survived.

In fact, if we look at the history of ancient Rome, we’re going to find many similarities to modernity.

The Roman Empire was not destroyed by war, but by its own economy. 

At this time the phenomenon that we now call inflation emerged. It manifested itself in a banal decrease in the precious metal content in coins.

At the beginning of the first century AD, Emperor Augustus minted full-fledged gold coins. Money, of course, the state lacked. Today, this problem is solved by issuing non-cash money. Two thousand years ago, Roman emperors reduced the gold content of coins. They took the case with such enthusiasm that after three hundred years there was only a few percent of gold in money.

In such circumstances, inflation was inevitable. The attempt to regulate prices led to even more problems, goods disappeared and a black market appeared.

Subsequent military defeats, crises, popular unrest, and the collapse of the empire were the result of economic turmoil.

The difference with modernity is that the process that has gone on for three hundred years is taking place today in a couple of years. Unfortunately, history repeats itself, and in an accelerated way.

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