Physiocracy

 


Physiocracy is the collective name of those economic principles and policies which developed in France in the middle of the 18th century. Physiocracy is also known as the ‘Agricultural System’. Economic thinkers who contributed to the growth and development of physiocracy have been called as physiocrats.

Physiocracy is also remarked as the first school of economic thought. The term physiocracy means “Rule of Nature’.

Physiocracy may be defined as a reaction against Mercantilism and its concepts. The physiocrats believed that the mercantile policies instead of doing any good have done great harm to the nations. So they revolted against the mercantile policies.

The influential French School of thinkers of the early 18th century was led by “Quesnay and Turgot”. They believed in the existence of natural law which governs the universe. Their emphasis on agriculture has earned for their system of thought, the name agricultural school.

Physiocrats are important in the history of economic thought because they represented the first school of economists. 

The mercantilists emphasised only foreign trade. 

But the physiocrats realised the importance of various economic activities and their relation.

 In the physiocratic system all social factors like production and distribution are connected. 

In short, the physiocrats were reformers.



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