Aristotle does not regard politics as a separate science from ethics, but as the completion, and almost a verification of it. The moral ideal in political administration is only a different aspect of that which also applies to individual happiness. Humans are by nature social beings, and the possession of rational speech (logos) in itself leads us to social union. The state is a development from the family through the village community, an offshoot of the family. Formed originally for the satisfaction of natural wants, it exists afterwards for moral ends and for the promotion of the higher life. The state in fact is no mere local union for the prevention of wrong doing, and the convenience of exchange. It is also no mere institution for the protection of goods and property. It is a genuine moral organization for advancing the development of humans.
The family, which is chronologically prior to the state, involves a series of relations between husband and wife, parent and child, master and slave. Aristotle regards the slave as a piece of live property having no existence except in relation to his master. Slavery is a natural institution because there is a ruling and a subject class among people related to each other as soul to body; however, we must distinguish between those who are slaves by nature, and those who have become slaves merely by war and conquest. Household management involves the acquisition of riches, but must be distinguished from money-making for its own sake. Wealth is everything whose value can be measured by money; but it is the use rather than the possession of commodities which constitutes riches.
Financial exchange first involved bartering. However, with the difficulties of transmission between countries widely separated from each other, money as a currency arose. At first it was merely a specific amount of weighted or measured metal. Afterwards it received a stamp to mark the amount. Demand is the real standard of value. Currency, therefore, is merely a convention which represents the demand; it stands between the producer and the recipient and secures fairness. Usury is an unnatural and reprehensible use of money.
The communal ownership of wives and property as sketched by Plato in the Republic rests on a false conception of political society. For, the state is not a homogeneous unity, as Plato believed, but rather is made up of dissimilar elements. The classification of constitutions is based on the fact that government may be exercised either for the good of the governed or of the governing, and may be either concentrated in one person or shared by a few or by the many. There are thus three true forms of government: monarchy, aristocracy, and constitutional republic. The perverted forms of these are tyranny, oligarchy and democracy. The difference between the last two is not that democracy is a government of the many, and oligarchy of the few; instead, democracy is the state of the poor, and oligarchy of the rich. Considered in the abstract, these six states stand in the following order of preference: monarchy, aristocracy, constitutional republic, democracy, oligarchy, tyranny. But though with a perfect person monarchy would be the highest form of government, the absence of such people puts it practically out of consideration. Similarly, true aristocracy is hardly ever found in its uncorrupted form. It is in the constitution that the good person and the good citizen coincide. Ideal preferences aside, then, the constitutional republic is regarded as the best attainable form of government, especially as it secures that predominance of a large middle class, which is the chief basis of permanence in any state. With the spread of population, democracy is likely to become the general form of government.
Which is the best state is a question that cannot be directly answered. Different races are suited for different forms of government, and the question which meets the politician is not so much what is abstractly the best state, but what is the best state under existing circumstances. Generally, however, the best state will enable anyone to act in the best and live in the happiest manner. To serve this end the ideal state should be neither too great nor too small, but simply self-sufficient. It should occupy a favorable position towards land and sea and consist of citizens gifted with the spirit of the northern nations, and the intelligence of the Asiatic nations. It should further take particular care to exclude from government all those engaged in trade and commerce; “the best state will not make the “working man” a citizen; it should provide support religious worship; it should secure morality through the educational influences of law and early training. Law, for Aristotle, is the outward expression of the moral ideal without the bias of human feeling. It is thus no mere agreement or convention, but a moral force coextensive with all virtue. Since it is universal in its character, it requires modification and adaptation to particular circumstances through equity.
Education should be guided by legislation to make it correspond with the results of psychological analysis, and follow the gradual development of the bodily and mental faculties. Children should during their earliest years be carefully protected from all injurious associations, and be introduced to such amusements as will prepare them for the serious duties of life. Their literary education should begin in their seventh year, and continue to their twenty-first year. This period is divided into two courses of training, one from age seven to puberty, and the other from puberty to age twenty-one. Such education should not be left to private enterprise, but should be undertaken by the state. There are four main branches of education: reading and writing, Gymnastics, music, and painting. They should not be studied to achieve a specific aim, but in the liberal spirit which creates true freemen. Thus, for example, gymnastics should not be pursued by itself exclusively, or it will result in a harsh savage type of character. Painting must not be studied merely to prevent people from being cheated in pictures, but to make them attend to physical beauty. Music must not be studied merely for amusement, but for the moral influence which it exerts on the feelings. Indeed all true education is, as Plato saw, a training of our sympathies so that we may love and hate in a right manner.