Physiocracy is the earliest theoretical system of bourgeois political economy
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November 21, 2022Physiocracy is the earliest theoretical system of bourgeois political economy
1.0 INTRODUCTION
Physiocracy is the earliest theoretical system of bourgeois political economy. The physiocrats appeared in France from 50-70 years of the 18th century and toward the end of the mercantilist epoch. Physiocracy is a school of through founded by François Quesnay (1694-1774), other representation of Physiocrats beside Quesnay is Anne Robert Jacques Turgot (1727-1781). The school began in 1756 when Quesnay published his first article on economics in Grande Encyclopedia. The ending of this school can be dated at 1776 because Turgot lost high position in the French government and Smith published his Wealth of Nations. They system illustrates the basic view of French classical political economy, especially on the viewpoint on the development of the capitalist agricultural economy.
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Physiocracy is derived from the Greek phýsis (nature) and kràtos (power) for “Government of Nature”. According to “The Wealth of Nations” by Adam Smith, the physiocrats believed that land production or land agriculture work as the main source of national income and wealth and named this as “Agriculture System”. Physiocrats stated that manufacturing balanced inputs with outputs, resulting in a zero-income. Therefore, the Physiocrats argued that manufacturing should not be protected by tariffs, the granting of monopolies or any government intervention on behalf of the manufacturing industry. They strongly believed that the best economic system came from laissez-faire. The physiocrats also had some thoughts in common with other Enlightenment thinkers and trusted that only agriculture produced a true surplus.
2.0 THE PHYSIOCRACY OF HISTORICAL CONDITIONS
From the aspects of economy:
In the middle of 18th Century, the French business has been considerable development, the number of workers is increasing rapidly, but the feudal relations of production are in the dominating position. In rural, the feudal lords exorbitant tax levies, depredation of farmers, as well as at the expense of farmers and the development of industry and commerce of the mercantilist policies. It is a serious damage to the interests of farmers. The agriculture in extreme fading the rundown situation and the decline of agriculture have also the development of industry and commerce.
