How does Augustus show himself to be a merciful leader?
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This is a good question, especially in light of your past questions. It is important to realize that not all people are purely good or bad. All people have both good and bad qualities.
If we believe in Augustus' words, then he was very merciful and generous. Let me give you a few examples. First, he was merciful to his enemies and pardon anyone who asked for it. Look at section three of the RES GESTAE. He also states that he always preferred to preserve foreign people, rather than destroy them (same section).
He was also merciful to the people by restoring public buildings at his own expense. He also gave tons of money to men, soldiers and towns, again at this own expense. See sections 15-18.
Finally, he creates peace in a time of civil war and gives to the people restoration. See section 34.
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