For this assignment, you will research the economy of ancient Rome. You will use your research to analyze the costs and benefits of an economic issue in ancient Rome. You will complete a graphic organizer, answer questions, and write a cost-benefit analysis. The economy of Rome was based on agriculture and trade. However, as the Roman Empire grew under
Caesar Augustus, cities became larger. Rome struggled to grow enough food, and depended on trade
with faraway lands. Rome became dependent on grain shipments from faraway territories, especially
Egypt. Any food shortage could have caused people to rebel, or revolt, against the leaders.
Caesar Augustus directed the government to improve farming. This led to the creation of aqueducts to
improve the water supply. The Romans improved farming tools and domesticated animals for plowing.
They also developed crop selection and rotation techniques. This made the Roman Empire more stable
and less dependent on trade.
Another important part of the Roman economy was industry. Industry is the production of goods. Products
included olive oil, pottery, glassware, and metal goods. Cities began to specialize in different types of
pottery and glassware. The Roman Empire also had a lot of iron, lead, and tin. Blacksmiths turned these
metals into tools, metal goods, and weapons. Industry led to a better economy and more trade. By
manufacturing more products, the Romans also improved their ability to trade. Olive oil and wine were
Rome’s leading exports.
Roads were also important to the economy of the Roman Empire. These roads made Rome the center of
trade networks, and connected inland cities to oceans and seaports. These roads dramatically improved
trade, communication, and the reach of the empire. Trade by sea was also important.
The use of a common currency also improved the Roman economy. Before Augustus, Rome had many
different types of money. This made trade difficult. Prices were confusing, and taxes were difficult to
collect. Augustus fixed this. The same coins had the same value everywhere. Coins were made and
managed by the central government. Coins were protected by strict rules and punishments. These steps
helped the Roman economy grow by stabilizing, or steadying, prices and making tax collection easier.
Bartering still existed, but having a common currency made trade easier.
The Roman Empire created trade networks with Europe, Africa, and Asia. Romans traded for silk from
China, spices from India, metal from Britain, and ivory and exotic animals from Africa.
The empire’s growth led to contact with new people, products, and trade networks. Conquering more
lands connected Rome to more trading partners. Rome’s expansion enabled access to the longest trade
route in world history, the Silk Road. The Silk Road was a network of roads and water routes across
Europe and Asia. The Silk Road trade routes brought the Romans new luxuries, such as spices and silk.