Physiocrats

Physiocrats, Physiocratic Thought

A school of social theory associated with the writings of the French political economist François Quesnay (1694-1774) and others. Physiocratic thought is mainly of interest to sociologists for its influence on (in curiously equal measure) Adam Smith and Karl Marx . The Physiocrats criticized the mercantilist belief that wealth originated in exchange, and accorded priority instead to the land, arguing that improved farming techniques, fiscal reform, and free trade in agricultural produce would stimulate capital accumulation , surplus value , and wealth generally. Smith endorsed the principle of laissez-faire and applauded the Physiocratic emphasis on private property as the key to improved living conditions. Marx, in his turn, described Quesnay as the founder of modern political economy , since his works introduced to modern economics the notions of capital and the interdependence of production, circulation, and distribution in a surplus-producing economy. Although Marx's attribution of this insight is now quite widely shared, the Physiocrats are generally criticized for glorifying the concept of the agricultural surplus, and failing to realize that there was also a surplus attributable to labour.