Physiocracy

rawr

physis (nature), kratos (rule or power)

Physiocracy etymology?

production, particularly agriculture

Physiocrats argued that true wealth came from ______________________ and that economic activity should be allowed to operate freely.

Francois Quesnay

he was the leading figure of the physiocratic school. He developed the Tableau Economique

Tableau Economique

This was one of the earliest attempts to explain the circular flow of income in an economy.

Productive, Proprietary, Sterile

the three classes according to physiocrats

land is the ultimate source of wealth

The central belief of physiocrats was that?

Concept of natural order

Physiocrats believed that economic systems follow natural laws.

•Individuals naturally pursue their own interests.

•Markets can coordinate economic activities.

•Government should avoid unnecessary restrictions.

Laissez-faire and Limited Government Intervention

The Physiocrats promoted the principle:

“Let people do what they naturally want to do.”

They believed that government should protect property rights, maintain order, and provide basic institutions

Proprietary Class

In the concept of tax bearing, physiocrats believed that _______________ should bear the taxes.