Diocletian managed to become an outstanding military leader due to his rise through the ranks with his succeeding hailing as the Roman emperor. His accession to power lead to the emperor’s understanding of the necessity of urgent reforms in political, military, social, and economic spheres. However, the present paper will be devoted to the analysis of economic situation in the Roman Empire in the time of Diocletian. The Price Edict of Diocletian, also known as the Edict on Prices and the Edict of Diocletian issued by Diocletian in 301 is a perfect source that gives an opportunity to analyze the economic situation in the Late Roman Empire. It signifies that the problem of inflation and pricing crisis were the major economic problems that were the most significant signs of economic decay of the Empire at the beginning of the fourth century.
First of all, it is necessary to touch upon the Edict as the medium of information. Its credibility and reliability can be proven by its authenticity due to its permanence. Though the Edict was issued in the form of written documents which are perishable media, it was mainly presented as inscriptions on the stone walls of public buildings and their fragments have survived till the present. Thus, the Edict on Maximum Prices is a primary document that has always been treated by historians and other researchers as the best source for scientific investigation of the past.
The final part of the document, the one that presents “the prices for the sale of individual items which no one may exceed” (Graser 220), can be analyzed in terms of the main industries and professions that were developed in the Roman Empire. Though the analyzed document is the fragment of the Edict since it includes about one thousand of items and services, it is still possible to make certain conclusions. It shows that agriculture is a developed sphere in the Roman Empire since the range of agricultural products is rather large; it covers such crops as wheat, barley, rye, millet, beans, etc. At the same time, the list signifies that the profession of a miller is among rather profitable professions that can be proven by the difference of the price ceiling for the non crushed products, for instance, beans, and crushed beans. Since the price of crushed beans is forty denarii higher than of non crushed ones, it is possible to conclude that the services of millers are in demand.
Wine-making has traditionally been recognized among the most developed economic spheres of the Ancient Rome, the wide-spread wine-production is evident if we resort to the analyzed document. However, it can be also stated that the price ceiling for wine is, evidently, put to low. The types of wine produced in different regions are intentionally equalized by their prices in order to make all regions equal. Also, the production of olive oil was very developed in the Roman Empire. However, the Edict also seems to underprice all types of oil intentionally.
If we analyze the limit of wages that was established by Diocletian’s Price Edict, it is possible to state that there was a great variety of professions that demanded different professional and intellectual skills. The professions of a farm laborer and brickmaker were among the most low-paid professions. At the same time, seemingly low-qualified profession of a wall painter was paid better than a farm worker, while stone masons, blacksmiths, and bakers received equal payment. In comparison with such professions, those professions that demanded intellectual skills and specialized education or talent, such as teachers, advocates, figure painters. This fact proves that the people of intellectual labor were appreciated by the state.
One the basis of the price ceilings established by the analyzed Edict and the limit of wages, it is possible to judge about the lifestyles of Roman citizens belonging to different societal levels, the rich ones and those who belong to the poor layer of society. However, only hypothetical conclusions can be made as we know that the prices of the goods and services fixed by the Edict are unrealistically low. Still, if we assume that farm laborers and shepherds belong to the poor, it is possible to state that their wage-limit allows them to buy crops, wine and oil of second quality while one pair of chickens at the price of sixty denarii (Graser 220) is a luxury. As for the prices of the clothing, they also seem to be too high for the poor citizens while such products as white silk are simply unaffordable for them. Also, soldiers are among the poorest members of Roman society as they have fixed wages that are too low to provide their living in terms of the prices caused by inflation. It is also stated in the decree that “in a single purchase a soldier is deprived of his bonus and salary” (Graser 219). If we take into account that the prices stated in the Edict are artificial and do not reflect the real situation and are still too high for the soldiers, it is possible to consider their financial status to be unbearable. Besides, all the privileges, like the purchase of white silk are affordable only to the rich layer, the representatives of which are, for instance, jurists. While merchants are traditionally considered to be well-off people, the Edict by Diocletian brings significant changes to their status damaging their financial stability.
As a matter of fact, merchants are the scapegoats in the Price Edict of Diocletian. They are accused by the state of the inflation terrorizing Roman economics. To offer textual evidence that can prove that merchants were the main persecuted people, it is possible to state that the merchants are accused by the emperor of “serious offences” and “crimes against the state” (Graser 218). They are recognized as “the enemies of individual and state” (Graser 218). In fact, the emperor’s eloquence goes as far as to call merchants “the unscrupulous”, “insensitive and so devoid of human feeling”, he accuses them of “immoderate prices” and “uncurbed passion for gain” (Graser 218). In the Edict, the author goes as far as to say that merchants are evil, they are against watering the lands and they want to take control over everything, wind and water included. This idea seems to be pompous and it can be even considered to be slander, an attempt to delude citizens shifting the responsibility of the state onto somebody else. It is known that Diocletian introduced a new coinage based on silver argenteus and these innovations also made their contribution to the aggravation of inflation in the Empire. Still, the greater part of the document is devoted to severe attacks on the merchants. The parallel is drawn between them and barbarians that attack Rome and thieves stealing money from the honest citizens (Graser 219).
According to the Edict, merchants are also prohibited to take their goods elsewhere while the price of transportation must not be included into the price of goods and it must not influence the price let alone the idea of exceeding the price ceiling on the ground of transportation costs. The degree manifests capital punishment for those merchants who break the rules. Besides, severe punishment is waiting for those who conspire with unscrupulous merchants and agree to accept their prices. Finally, those who intentionally conceal their goods and services for the reason of their unsatisfactory prices can be also accused of the crime against the state.
Effectiveness of the Edict and the intervention of the state can be seriously questioned. As it has been stated above, the merchants were considered the only people responsible for the economic crisis as they were lead by enormous greed. The only measures taken by the state were setting of the inadequate price ceiling for the goods and services and intimidation of the merchants. The state was ready to resort to military help “on every road” (Graser 219) to control the merchants. At the same time, the same price ceiling for goods in different regions is unreasonable as it does not take into account differences in production and demand for certain products in different regions. Moreover, groundless price limits that are too low in comparison with real needs seem ineffective and they are the reason for the appearance of black markets, profiteering and evasion of the law.
The situation in the Roam Empire can be compared to the rule of the Han Dynasty in China in terms of their iron and salt policy (Hansen and Curtis 106). It is known that at the beginning of their rule, merchants were the main owners of Chinese salt and iron enterprises. It can be stated that the level of their profit was very significant and impressive and it could compete with the funds of the imperial court. To strengthen the economic basis of the state, iron and salt production was centralized during the reign of the Han Dynasty. Tough this undermined the position of merchants significantly; they were not treated as the enemies of the state as it was in the case of the Roman Empire. The Han Dynasty rulers abolished severe taxes that had been imposed by the previous dynasty, the Qin Dynasty and they also promoted laissez-faire policy that turned out to be beneficial for the economy of the state. Besides, merchants got an opportunity to acquire land. Thus, though the Han administered centralization of iron and salt enterprises, they managed to establish fair relationship with the merchants in contrast to Diocletian.
In conclusion, it is possible to state that the Price Edict of Diocletian has proved to be unreasonable reform that aggravated economic crisis in the Roman Empire till the emperor Constantine came to power. Still, the Edict is a rich source of genuine information about the economic state, life styles of Roman citizens, the position of the state in that time. Diocletian can be considered a skillful warrior and leader but a bad economist. His politics of intimidation and oppression of merchants seem unreasonable along with ungrounded price ceilings.
Works Cited
Graser, Elsa. “The Price Edict of Diocletian.” An Economic Survey of Ancient Rome. Volume V: Rome and Italy of the Empire. Frank, Tenney. Baltimore: The Johns Hopkins Press, 1940. 217-220.
Hansen, Valerie, and Kenneth Curtis. Voyages in World History, Volume I. Boston, MA: Cengage Learning, 2008.