What is the meaning of Physiocracy? Concept and Definition of Physiocracy

Definition, concept, meaning, what is Physiocracy

1. Concept of Physiocracy

The Physiocracy, also known as Fisiocratismo, is an economic system typical of the 18th century which was highlighted by attribute exclusively to nature the origin of wealth, whereas agriculture the main economic activity and producing the same.
Also, is designated as Physiocracy to school of economic thought founded in France in the 18th century by the French economists: Anne Robert Jacques Turgot, baron de Laune, François Quesnay and Pierre Samuel du Pont de Nemours.
According to this school, the good economic performance of a nation would be guaranteed without the intervention of any Government and if it is strictly based on agriculture, because according to these thinkers, only in agricultural activities nature enables that the product can be greater than the inputs used in the production process, producing in this way economic surplus. Physiocracy, directly considered sterile proposals such as manufacturing and trade, in which the seizure would be insufficient to replenish the used inputs.
Note, that the system proposed by the Physiocracy is summarized in the concept of laissez faire, popular French expression referring let do, let go, expressing complete freedom of the economy, i.e., free market, free manufacturing, low or zero taxes, free labour market, minimum government intervention.
The main cause for which arises the physiocracy is intellectual reaction to the conception prevailing economic politician that he sent: corporate and interventionist. The physiocrats, as referred to those who profess their attachment to the Physiocracy, believe that attentive participation of intermediaries in the stages of the process of production and distribution of goods against the level of prosperity and economic production. And other crucial leg of the physiocrat thought is the belief that the wealth of a nation comes absolutely of its own capacity of production and not the riches accumulated at the behest of international trade.

2. Definition of Physiocracy

The economic system that attributes the origin of the richness of nature is known as physiocracy. This school of thought emerged in France during the 18th century, with exponents such as François Quesnay, Pierre Samuel du Pont de Nemours and Anne Robert Jacques Turgot, among others.
According to the physiocrats economic systems should be governed by its own natural laws, without government intervention. Your system, therefore, rested on the French concept of laissez faire ("let"), which promotes free markets and no involvement of the State in economic decisions.
Physiocracy, therefore, opposed to mercantilism, promoter of an active state that set protectionist measures. To the physiocrats, such policies involving State intervention in various stages of production and distribution of goods generated a decline in economic activity and prosperity in general. The monopolies dominating certain sectors of the economy and the strengthening of a parasitic bourgeoisie taking as examples to demonstrate this.
As well as mercantilism holds that the basis of wealth is the accumulation of precious metals from international trade, the physiocracy to wealth is generated by agriculture. The physiocrats theoretical claim that the farmer is the only individual whose work produces more than the salary that perceives.
Criticisms of the physiocracy contradicted that the commercial and artisan classes were unproductive and claimed that it should not apply a tax on land.

3. Meaning of Physiocracy

The physiocracy word comes in its etymology from Greek. It consists of "physis" which means nature, and "kracia" Government.
The physiocracy as economic doctrine appeared in the 18th century, as one of the manifestations of the enlightened despotism, he adhered, opposed to mercantilism, holding that the wealth of Nations not is measured by its accumulation in gold and silver, but by land and agricultural development, which provide a surplus between the raw material and produced, what would not happen in other activitiessuch as trade or industry, they considered that sterile.
For this ideology, human life, both the individual and the social, should be governed by natural laws, following that order predetermined by a superior, and therefore perfect divine will, and does not involve the State in the economic life, that people should be able to develop its activity in free-form (laissez faire laissez passer). The role of the State was the ensure the right to education, the peaceful enjoyment of the freedoms and the realization of public works. Within the natural social order, the social class of farmers was the most important, because it was the only originating wealth. Taxes that recorded the rural exploitation were very low.
The French physician Françoise Quesnay, who lived between 1694 and 1774, and which published the physiocracy-friendly insights in the year 1758, in "Tableau economique" or in Spanish "economic picture", is the highest representative and pioneer of this movement. The father of economic liberalism, Adam Smith was a huge influence of physiocracy.