Physiocratic

Physiocratic refers to an economic theory that emerged in France during the 18th century. Its central tenet was that the wealth of nations derived solely from agriculture. Physiocrats believed that land was the ultimate source of all value, and that other forms of economic activity, such as manufacturing and trade, were merely "sterile" or derived their value from agricultural production.

The most prominent figure associated with Physiocracy was François Quesnay. His Tableau Économique, published in 1758, was a circular flow diagram illustrating the movement of wealth within an economy, emphasizing the role of landowners, farmers, and artisans. Physiocrats advocated for policies that would favor agricultural production, such as removing internal trade barriers and reducing taxes on farmers. They were critical of mercantilist policies, which focused on accumulating precious metals and promoting exports.

While Physiocracy as a distinct school of thought eventually faded, its ideas influenced later economists, including Adam Smith. The emphasis on natural order and the importance of economic freedom, even if applied narrowly to agriculture, laid some groundwork for classical economics. The physiocrats' focus on a single source of wealth was eventually challenged and superseded by broader understandings of economic value.