Physiocracy


Physiocracy is known as an economic system implemented during the eighteenth century which was characterized because it was believed that the source of money came solely and exclusively from natural origin, for this reason it was believed that farming was the source of greatest economic importance and therefore it was the one that generated wealth. According to his ideology, the market without the intervention of government entities, would naturally function perfectly. The physiocratic school was created in France by François Quesnay in 1758. Regarding the etymological origin of the term, it comes from the Greek language, and is composed of three elements, the first is “physis” which means nature, followed by ” kratos” whose translation is power, finally there is the suffix “ia”, which means quality.

As mentioned above, the founding father of the Physiocratic school was François Quesnay, however with him were also Anne Robert Jacques Turgot, Anne Baron de Laune and Pierre Samuel du Pont de Nemours. According to his thought, the correct development of the economy in a country would occur if the government did not intervene in these matters, in addition to this this system was also characterized because it was based solely on the exploitation of agriculture as a source of income, arguing that only in In this economic branch, the income could exceed the expenses required in the production process, which generated a surplus of wealth.

It is important to point out that at that time the Industrial Revolution had not yet emerged, therefore there were no ways to confirm the viability that the industrial sector had in the economic development of the world. Physiocracy also stands out because it promotes a free market economy and where the state has no participation in economic matters.

This ideology was also in resounding opposition to mercantilism, which is characterized by promoting a state that will be in charge of imposing protectionist measures, which implied that the state interferes in what was the production and distribution of goods and services. , which generated a decrease in the economy and consequently wealth in general declined.