The Greek Classical Origins of the Austrian Evolutionary Theory of Institutions: Democritus and Generous Egoism

This paper explores the philosophical roots of the evolutionary theory of institutions in the Austrian School, tracing them back to Greek thinkers. Through a historical survey ranging from Hesiod to Aristotle, it highlights how the Greek rationalist and constructivist outlook limited the understanding of spontaneous order. Democritus, however, emerges as a notable exception: his conception of cooperation arising from necessity, his defence of private property, and his subjective theory of value anticipate key principles of Austrian thought. Drawing on a modern interpretation by Antonio Escohotado, the atomist notion of ‘generous egoism’ is defined as the moral and epistemological foundation of spontaneous order, whereby social harmony arises from individual self-interest guided by knowledge and freedom.