“When civilization [population] increases, the available labor again increases. In turn, luxury again increases in correspondence with the increasing profit, and the customs and needs of luxury increase. Crafts are created to obtain luxury products. The value realized from them increases, and, as a result, profits are again multiplied in the town. Production there is thriving even more than before. And so it goes with the second and third increase. All the additional labor serves luxury and wealth, in contrast to the original labor that served the necessity of life.”
“Businesses owned by responsible and organized merchants shall eventually surpass those owned by wealthy rulers.”
U.S. President Ronald Reagan quotes Ibn Khaldun:
“In the beginning of the empire, tax rates were low AND the revenue was high”
“At the end of the empire, tax rates were high AND the revenue was low”
So who was Ibn Khaldun?
- a muslim historiographer and historian who is often viewed as one of the precursors of modern historiography, sociology and economics
- the founding father of Eastern Sociology
- one of the early founders of the social sciences that makes him a forerunner of many of the eighteenth and nineteenth centuries system-builders such as Vico, Comte and Marx.