This presentation is part of: Z13-1 (1915) Social Norms

Through a Financial Looking Glass of Imperial Rome Appears the U.S.?

Darrol J. Stanley, D.B.A, Graziadio School of Business and Management, Pepperdine University, 16830 Ventura Blvd., Suite 200, Encino, CA 91436 and Carole T. Stanley, B.A., Stanley & Stanley, 10825 Savona Road, Los Angeles, CA 90077.

One purpose of this research addresses the question: What factors contributed to the economic demise of the Western Roman Empire?  A second objective seeks to analyze 20-21st century economic policies of the United States through a looking-glass backwards to the fall of the Western Roman Empire.  This study endeavors to explore and analyze, in particular, economic and tax policies and political events of the Roman Republic and the Autocratic Roman Empire placing side by side policies and events deemed to be similar in the United States.  Initial free markets are studied.  Currency (denarius-R/dollar-US) devaluation is charted.  Economic policies and tax laws and the growth of public debt portend social and economic consequences in each society.  Corruption among corporate and government officials became confiscatory.  Trends of socialism replaced free market activity.  Welfare states developed.  In 3-4 century AD Autocratic Rome, growth eroded and wealth hid.  We conclude the feudalization of Western Europe was the response to egregious Imperial policy.  In Rome, the tax burden on farmers became so onerous that farming families were unable to support themselves as they had in the past.  Currently in the United States---as 'Joe the Plumber' concerns demonstrate--- the Middle Class remains at risk.  We analyze the 21st century financial crisis in the United States and draw parallels to the Roman experience regarding the US government policy responses and actions.  We suggest that in Autocratic Rome, government problem-solving actions were inappropriate solutions that at times exacerbated the problems.  Our conclusions include alternative suggestions that present possibilities to enable the United States to avoid the 'fate' of Rome.