The modern English word Economics derives from the Greek word – Oikonomia.
Oikonomia itself is a combination of two Greek works
“Oikos” and “Nomos“
Oikos — meaning more or less the household or family estate — and Nomos, which can mean rules, natural laws or laws made by the government, but which in this case primarily means “wise laws” or “rules of thumb.”
Thus the book Oikonomia, by the Greek author Xenophon, is probably best translated as “rules of thumb for estate management.”
Xenophon was a soldier who became one of the most influential authors from this ancient world.
In his book he developed some key ideas including
- Wealth depends on use, not possession. Something is truly wealth only if a person knows how to use it beneficially. A horse, land, or money can be an asset or a burden depending on the owner’s knowledge and judgment.
- Management is a skill. Household administration as a form of expertise that can be learned and applied.
- Agriculture is the ideal occupation. Farming is praised as being both profitable and morally beneficial.
- Leadership and organization matter. A good manager motivates workers, organizes resources, and creates order.