In response to inflation and declining tax revenues, Diocletian issued an edict that fixed maximum prices and wages throughout the empire. At the same time, taxes became payable in kind, that is, in goods such as grain, sheep, or cloth instead of money, which made them difficult to transport to central authorities. Constantine continued these measures and also made occupations more rigid: all people involved in the growing, preparation, and transportation of food and other essentials were locked into their professions. In this period of severe depression, many individuals and communities could not pay their taxes. In such cases, local tax collectors, who were also bound to their occupations, had to make up the difference from their own funds. This system soon wiped out a whole class of moderately wealthy people and set the stage for the lack of social mobility that was a key characteristic of European society for many centuries to follow.
The emperors’ measures did not really address Rome’s central economic problems, however. Because of worsening conditions during the third and fourth centuries, many free farmers and their families were killed by invaders or renegade soldiers, fled the land to escape the barbarians, or abandoned farms ravaged in the fighting. Consequently, large tracts of land lay deserted. Landlords with ample resources began at once to reclaim as much of this land as they could; they often hired back the free farmers, who had previously worked the land, as paid labor or tenants. The huge villas that resulted were self-
Free farmers who remained on the land were exposed to the raids of barbarians or robbers and to the tyranny of imperial officials. In return for the protection and security landlords could offer, small landholders gave over their lands and their freedom. To guarantee a supply of labor, landlords denied them freedom to move elsewhere. Free men and women were becoming tenant farmers bound to the land, what would later be called serfs.