ANCIENT ECONOMIC THOUGHTs –PLATO
Plato was classical Greek philosopher. The coveted Academy was founded by him in Athens, a pioneering institution in Western world for higher learning. He was considered as an important personality who had contributed for the development of philosophy, mainly the western tradition. Plato was pupil of Socrates and master of Aristotle. These three are popularly known as Intellectual Trios who put foundations to Western Philosophy and Science. His famous writings are’ The Republic’ and ‘The Laws’. Plato’s works provide basis for analysing the origins of economic thoughts in ancient era. He recognised some economic aspects in the social institutions. Eric Roll says that “he attempted to offer a systematic exposition
The Producers who love their labour work, security, comfort and material well being. They must provide necessities and materials for functioning of state and citizens.
We can say that state is in balance when all of the citizens are pursuing their personal excellence. On the contrary, if a citizen is abstained from doing his natural endowment, the state is out of balance and society needs reforms. Thus Plato has seeded the idea what we call division of labour or functional specialisation in modern terms. When one does what he can do the best, the efficiency follows.
Plato’s views on division of labour are different from that of Adam Smith in many ways. Smith’s division of labour is influenced by the market whereas Plato’s division influences the market. Secondly, Smith said that from the division of labour employee community is the most benefited whereas according to Plato such division is advantageous to whole society.
Lastly, Plato said that difference in skill and talent leads to division of labour but Smith concluded that division of labour itself leads to differences in talents and skills.

Government
He stated that ideal state should allow for collective ownership of property. According to him, communism helps to eradicate the disadvantages of caste system. Although the ideal state is not a communist state, he aimed to abolish class conflicts. Plato’s communism also applied to wives and children, the main object was to encourage harmony by eliminating civil suits and combining all citizens by common interests. The idea of community of wives aimed at reducing jealousy and control