Sparta, again financed by Persia in 392 BCE, blockades Athens.

Isocrates, a teacher of rhetoric and political philosophy, sets up his own school of rhetoric sround this time because Athens has no set curriculum for higher education (sophist teachers often travel), and proves to be not only an influential teacher, but a shrewd businessman.

It is the first permanent institution of higher education in the liberal arts.

Isocrates’ fees are unusually high, and he accepts no more than nine pupils at a time.

Many of them will go on to be philosophers, legislators and historians As a consequence, he amasses a considerable fortune.

According to Pliny the Elder (NH VII.30) he could sell a single oration for twenty talents.

Isocrates' program of rhetorical education stresses the ability to use language to address practical problems, and he refers to his teachings as more of a philosophy as opposed to rhetoric.

He emphasizes that students need three things to learn: a natural aptitude that is inborn, knowledge training granted by teachers, and textbooks and applied practices designed by educators.

He also stresses civic education, training students to serve the state.

Students practice composing and delivering speeches on various subjects.

He considers natural ability and practice to be more important than rules or principles of rhetoric.

Rather than delineating static rules, Isocrates stresses "fitness for the occasion," or kairos (the rhetor's ability to adapt to changing circumstances and situations).

Isocrates' school is to last for over fifty years and teach the basis of liberal arts education as we know it today, including oratory, composition, history, citizenship, culture and morality.