THE BEECHMONT CREST GUIDE TO ANCIENT GREECE
How economic woes and bad loans brought democracy to Athens
Athens was established on the peninsula of Attica around 700 B.C. Athens did not start out as a democracy. The polis was originally governed by a ruling class of aristocrats, who controlled political and economic matters through a council called the Areopagus.
This status quo was upset in the mid-seventh century, when a severe economic downturn struck the polis. Athens’ farmers were hit the hardest. Most were already living near the sustenance level, and were heavily in debt. When the economy went south, many were forced to default on their loans.
The farmers’ debts were held by the aristocrats, who were the only ones in Athens at this time who had the wealth necessary to extend loans for profit. Since the farmers had had no material collateral to secure their loans with, the aristocrats had insisted on a more personal form of collateral: the promise of servitude. Those farmers who defaulted on their loans were literally forced into slavery.
As a result of these arrangements, a large number of Athens’ free population was compelled into slavery virtually overnight. As might be expected, this newly enslaved class was not pleased with their lot. In addition to the draconian loan conditions, there were other old grievances that bubbled to the surface. There were cries not only for debt forgiveness, but also for land reform and a lessening of the aristocrats’ hold on the government. Riots ensued, and Athens teetered on the verge of civil war.
Into this turmoil stepped Solon, a member of the aristocratic class who recognized that the current situation was unsustainable. He instituted a series of reforms that not only eased the tensions, but also put Athens on the path toward democracy.
Solon prevailed on his fellow aristocrats to cancel the outstanding debts and free those who had already been enslaved because of loan defaults. He pushed a law through the Areopagus that outlawed future loans with human beings as collateral.
Solon then took steps that made it possible for non-aristocrats to participate in the government. He divided all Athenians into four classes based on their degree of wealth. The wealthiest two classes were permitted to hold seats in the Areopagus, while the bottom two classes were given lesser political rights. All citizens were made eligible to serve on civil courts. Finally, to avoid abuses of power, Solon gave all citizens the right to bring charges against corrupt officials.
Solon stopped short of any push for land reforms—the aristocrats were already taken aback by the curtailment of their political monopoly. But Solon had gotten the democratic ball rolling. After some more turbulent episodes, Athens would move toward authentic democracy.