The Expansion of Rome Increased the Disparity Between Rich and Poor

question 58

Essay

The expansion of Rome increased the disparity between rich and poor because the elites gained wealth and increased their estates through the spoils of war, while the soldiers, all of whom were small landholders, were unable to maintain their farms while they were away at war and often lost their land altogether. How did the Gracchus brothers and Gaius Marius try to remedy this situation?

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Definitions:

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

After-tax Profits

The amount of money a company retains after all income taxes have been subtracted from its earnings.

Marginal Propensity

The ratio of the change in an economic variable (such as consumption or savings) in response to a change in another variable (such as income).

Investment Demand Curve

A graph that illustrates the inverse relationship between the rate of interest and the amount of investment demanded, holding all else constant.