Definition of Economy by Aristotle

In the ancient Greek, "oikonomia" is a synonym of 'economy' in modern English but it seems that meaning of the word was quite different. Aristotle's concept of "oikonomia" (οἰκονομία) is rooted in his discussions on household management and the organization of the home. The term "oikonomia" combines "oikos" (household) and "nomos" (law or management), thus referring to the management of the household. Aristotle discusses this concept primarily in his works "Politics" and "Nicomachean Ethics."

In "Politics," Aristotle distinguishes between "oikonomia" and "chrematistics." "Oikonomia" is concerned with the proper management of the household and its resources to ensure the well-being and self-sufficiency of the household members. This includes the management of family relations, slaves, and property. It is a natural and necessary activity aimed at supporting life and enabling virtuous living.

On the other hand, "chrematistics" refers to the acquisition of wealth and resources, which Aristotle sees as potentially unlimited and not inherently tied to the needs of the household. While "oikonomia" seeks to use resources in a way that benefits the household and contributes to the good life, "chrematistics" can become problematic when it prioritizes wealth accumulation over ethical and practical needs.

In summary, Aristotle's "oikonomia" emphasizes:

1. Household Management: Efficiently organizing and using household resources.

2. Ethical Living: Ensuring that the household functions in a way that supports a virtuous and ethical life.

3. Self-sufficiency: Focusing on meeting the needs of the household rather than the unlimited pursuit of wealth.

This concept underpins much of Aristotle's ethical and political thought, highlighting the importance of balance and purpose in economic activities.