Physiocracy

PHYSIOCRACY

 ''Capitalism In Agriculture''

What is the meaning of Physiocracy?

   

         Physiocracy is a school founded by  François Quesnay. Physio  meaning of ''nature'' , cracy meaning of ''rule'' . As a result that is all mean ''Rule of Nature.'' Actual members of this school didn't call themselves as a Physiocrat, they called themselves as an Economists.

         Liberal economic doctrine or laissez-faire*. In the eighteenth century Physiocracy emerged as a reaction to Mercantilism and emerged as the representative for the newborn industrial capitalism.

Initially, it was appropriate to France's economic structure; it was representativing agricultural capitalism.Later, it started to be a representative as a new industrial capitalism in France and England. New rising entrepreneur class,they all against the every limited activity of own in public. Mercantilism's monopoly, public inspections,privileges,the lands of the aristocrats, they were against of all but for their own benefits they were want fredom, personal initiative and audit.

          In fact, economic thought of the physiocrats who established a short effective economic theory system, '' In 1750 wasn't available. In 1756-70, everyone was talking about it but in 1780 everyone forgot it.''
         
        Physiocrats didn't see the money as only a 'sharing goods' , at the same time , they didn't forget to keep in mind the effect of on total economic activity. The following school, they watched different ways from schools of Classics and Neo-Classics, Physiocrats didn't see 'saving money' as beneficial.

Representatives of Physiocracy

Outlines of Physiocrat Doctrine

Natural Order

Net Income

Single Tax and Free Foreign Trade

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1-Natural Order

       Physiocrats's orders,It is a regularity desired by GOD for people's happiness. People should learn this order. People's personal interest shouldn't go against thsi order.

2-Net Income

        According to Physiocrats net income,roughly meaning of today's national income. According to Physiocrats net income can only be taken from agriculture. Because the only point of cooperation its agriculture.

3-Single Tax and Free Foreign Trade

        Single tax was result of net income theory.Physiocrats,for the successful execution of the single tax system,they also saw the need to increase net income.For this, They thought the small village agriculture should be equal with big capitalist agricultural businesses.

      

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François Quesnay ''Tableau Economique''

As a source of social surplus: Interclass circulation of ''Soil and Surplus''

           Quesnay, a medical doctor, in Tableau Economique, he tried to explain surplus of circulation and various social classes completely.His analysis, presence of land ownership,land owners have earned rent from agricultural producers, the producers had the capitals, they employed wage workers in agricultural production and they used themselves capitals, there was no foreign trade, there was a closed economy; social savings were only enough for the renew capital, and there wasn't net capital.

  Society occured only three clasess:

1. Land owners, they held the land ownership. ( landlords,king...)
2. Hirers in agriculture,they made agricultural production(farmers,workers...)

• They were the real productive class.Because, they made a produit net(net product), eveyone(lords,kings,queens,government,others....) needed themselves products.

      3. Steriles(artisans,merchants...)

• They didn't make produit net.

           When we came to the circulation and re-creation of the net income, social classes:In here,there was a yearly environemtal trend both goods and money stock.At the end of the harvest,in producers stocks with all net product, there was presumed like they stocked the money stocks too.

In his work, he showed how the total product that is created in agriculture is divided between the existing social classes.

          He likened the ''Tableau Economique'' to blood circulation because he was a doctor.

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Macro Economics"Self-balancing" model: QUESNAY

What did Quesnay do?      

   

           The works of Physiocrats with  ''Natural Order'' to understndn all economic order, in a reasonable and consistent thought line it was the 'first try' to way of explain.This first try, at time same time beginning of economy theory. Although they are laissez-faire originates from the understanding of natural order, the physiocrats made a great contribution to the development of economic analysis and theory.


            Physiocrats,like mercantilist they were searcing ''Source of Wealth.'' but diffreent from mercantilist, they said ''Weatlh wasn't born from barter, it was born from agricultural production.''Their analysis, for the 'make wealth' and necessity of accumulation 'surplus', which led to the investigation of what was born of the production activity.This is the birth of the surplus,while examining the circulation among various classes of society,they consistently succeed in abstraction and model building.



We will continue with the Quesnay's ''Economic Table.''

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