Physiocratic Theory

Physiocracy or physiocratic was a school of eighteenth-century economic thought founded by François Quesnay, Anne Robert Jacques Turgot and Pierre Samuel du Pont de Nemours in France. Affirmed the existence of a natural law by which the proper functioning of the economic system would be secured without government intervention. His doctrine is summarized in the phrase laissez faire. The origin of the term physiocracy comes from the Greek and means "rule of nature", considering the Physiocrats that human laws should be in harmony with the laws of nature. This is related to the idea that only the nature of agricultural activities enables the product obtained is greater than the inputs used in production thus resulting in an economic surplus. The Physiocrats described as sterile as manufacturing activities or the shop where the seizure would be sufficient to replenish the inputs used.

Theory

Physiocracy emerges as an intellectual-type reaction to the common conception of life interventionist mercantilist thinking. They insisted that the intervention of intermediaries in various stages of production and distribution of goods tends to reduce the overall level of prosperity and economic production. Examples of these interventions were many but the Physiocrats were fixed on government controls such as monopolies, excessive taxation, bourgeois, parasitic, and European feudalism. These practices were associated with commercial corporatism or excessive emphasis on industrial growth, which were and are based on the restrictive private interest. And to deepen the differences studied funds, as advocated a single tax on land and suggested the cancellation of all established by the mercantilist. The general trend of the Physiocrats is free trade. The task of the economist is reduced to find the set of natural laws. State intervention is futile, because that would not otherwise interfere with the essential order. The interest of the Physiocrats concentrated largely on the definition of a macroeconomic strategy for development that includes consistent policies. It is the first movement that adopts a systematic approach to economic theory. It was believed that if this law was considered and amended, would lead to harmonious and beneficial conditions for all mankind. Physiocracy applies to the whole concept of a government, not necessarily the only economic activity. Because the parents of this political theory saw economic progress as inseparable from social progress, arguing that thanks to increased prosperity natural rivalries competing groups will decrease because at the end of the day will cost more than it's worth.

History

If you can say that the system was implemented in history physiocracy between or after the eighteenth century, it certainly was not in the form of 'pure' theorists envisioned by its creators, but through detailed legislation that favored private Recommendations. Led to the period known as The Enlightenment. Reflections of a belief in natural law can be set in a countless number of areas, ranging from natural science to theories of constitutional order (Magill). In pre-revolutionary France, Anne Robert Jacques Turgot served as a member of the court of Louis XIV, the local administration of Paris, and wrote pamphlets and booklets on work-related issues: taxes, trade of grain, and money. Turgot argued that the wealth came from self-interest and markets are linked by flows of money (ie a cost to the buyer's revenue for the producer). Thus he realized that the fall in prices in times of shortage - common at the time - was dangerous economically as it served as a disincentive to production. Usually Turgot called for less government interference in the grain market, as any government activity would give birth to an event that would prevent the policy work. An example would be if the government bought corn abroad, there would be people who would realize that there is a likely shortage and price increase, so that prices could rise and could be a shortage. This idea was an early example of the adjustment to free trade. Published in limited areas, François Quesnay proposed a system known as "the dîme royale" which suggested a major simplification of the French tax code based on changes concerning only in property taxes and trade. During periods of about seven years of war between France and England, the movement of physiocracy began to grow. Several newspapers appeared, showing a growing audience in France the new economic ideas. Among them the most important was the Diaire Economique (1721-1772), which promoted agriculture and rational agriculture and diaire du commerce (1759-1762), who was greatly influenced by the Irish Richard Cantillon (1680-1734), and two dominated by Physiocrats, the newspaper de l'agriculture, du commerce and finances of DES (1765-1774). Jacques Vincent de Gournay (1712-1759) (who was the intendant du commerce) wrote Ephemerides du citoyen (1767-1772 and 1774-1776). Where condemning the exclusiveness of the trade unions, the multitude of taxes on land, and artificially set prices for raw materials, as grain. While the Physiocrats were able to change a lot of abuse legislation and introduced a plethora of ideas socio-economic-political, capitalist interests triumphed in the end given the predominant focus on industrial growth over agricultural (Whittaker).