The Maladjustment of Palestinian Economy Under Herod

ALESTINE, during the reign of Herod, was in a continual state of tension. Social unrest and political disturbances were widespread throughout the land. The causes of this tension were varied in nature, but economic forces played an important part. Little attention has been given to the economy of Palestine during this period by either social scientists or theologians.? Simkhovitch is an illustration of this neglect. Although he is essentially an economic historian, his otherwise excellent book Toward the Understanding of Jesus omits almost entirely consideration of the economics of Palestine during the time of Jesus. The economic conditions of this period have been studied by socialist writers, as for example Kautsky in his Foundations of Christiantity and Kaltoff in his Rise of Christianity. Both, however, present a biased viewpoint in that they use this period as additional proof of the Marxian materialistic interpretation of history. In recent years considerable progress has been made in economic historical research, and as a result, new insights have been obtained on the reasons for economic behaviour in the past. This study seeks to apply some of these insights to a study of the economy of Palestine at the time of the birth of Jesus. Unlike our modern economy, that of Palestine was predominantly public and not private in nature. The system was operated mainly to raise governmental revenues from the economic surpluses of the people. This paper therefore studies the fiscal or revenue-raising system of both the Romans and the Jews and seeks to appraise the ability of the economy to support this double structure. The reign of Augustus inaugurated a new fiscal system throughout the Roman world. Under the late republic, conditions had been very unfavorable. The succession of civil wars had led to political and economic chaos. A policy of free trade was extended. Within this vast area, economic life quickened, and there was general prosperity. Economic stability was further developed by a well regulated monetary system.2 Private property was safeguarded, and as a result, the accumulation of capital was encouraged. Probably never before in human history had there been so great a capital accumulation. It was not again to be duplicated until the coming of the modern era in the sixteenth century. It is therefore little wonder that the provinces of the empire were loud in praise of Augustus. One of the most important reforms of Augustus was the fiscal administration of the provinces. For decades the provinces had been ruthlessly despoiled by the system of "farming" taxes. The inhabitants of these territories were bled white by the "publicani." They were either individuals or private corporations which had won the concession of collecting taxes. This function was supervised by the local Roman governor who was spending a voluntary exile from Rome in order to reap enough funds for bribing the investigators of his administration when he returned home and still have enough left over to live his remaining years in luxury. This vicious system was terminated by the emperor who now had taxes collected by imperial officers. The graft of the publicani was eliminated and taxes were levied on an accurate basis through