Mercantilism and the Physiocracy
Mercantilism and the Physiocracy
Early economic thought (pre-classical economics) (8th century BC – 1776)
1. early pre-classical economics (Greeks, Scholasticism) (800 BC – 1500)
2. late pre-classical economics (1500-1776)
Mercantilism, 16th - 18th centuries;
Physiocracy, France, 1750 -1789
Late pre-classical economics spans from circa the year of 1500 to 1776. We can distinguish two main currents of economic thought in this period: Mercantilism, active in the whole Europe from 13th to 16th century and Physiocracy, a French school of economic thought, active from about 1750 to 1789. We discuss them in turn.
Important writers of this period (late pre-classical economics)
Thomas Mun, England’s Treasure by Foreign Trade, 1664
William Petty, Political Arithmetic, 1690
Bernard Madeville, The Fable of the Bees, 1714
David Hume, Political Discourses, 1752
Richard Cantillon, Essay on the Nature of Commerce in General, 1755
Francois Quesney, Tableu Economique, 1758
The period between 1500 and 1750 was characterized by an increase in economic activity. Feudalism was giving way to increasing trade. Individual economic activity was less controlled by the custom and tradition of the feudal society and the authority of the church. Production of goods for market became more important and land, labor and capital began to be bought and sold in markets.
This laid the groundwork for the Industrial Revolution in the second part in the 18th century. However, we have to remember, that still we are talking about pre-industrial world, where agriculture is the most important sector of the economy.
During this period from 16th to the half of 18th century, economic thinking developed from simple applications of ideas about individuals, households and producers to a more complicated view of the economy as a system with laws and interrelationships of its own.
Mercantilism.
Mercantilism is the name given to the economic literature and practice in Europe
Early economic thought (pre-classical economics) (8th century BC – 1776)
1. early pre-classical economics (Greeks, Scholasticism) (800 BC – 1500)
2. late pre-classical economics (1500-1776)
Mercantilism, 16th - 18th centuries;
Physiocracy, France, 1750 -1789
Late pre-classical economics spans from circa the year of 1500 to 1776. We can distinguish two main currents of economic thought in this period: Mercantilism, active in the whole Europe from 13th to 16th century and Physiocracy, a French school of economic thought, active from about 1750 to 1789. We discuss them in turn.
Important writers of this period (late pre-classical economics)
Thomas Mun, England’s Treasure by Foreign Trade, 1664
William Petty, Political Arithmetic, 1690
Bernard Madeville, The Fable of the Bees, 1714
David Hume, Political Discourses, 1752
Richard Cantillon, Essay on the Nature of Commerce in General, 1755
Francois Quesney, Tableu Economique, 1758
The period between 1500 and 1750 was characterized by an increase in economic activity. Feudalism was giving way to increasing trade. Individual economic activity was less controlled by the custom and tradition of the feudal society and the authority of the church. Production of goods for market became more important and land, labor and capital began to be bought and sold in markets.
This laid the groundwork for the Industrial Revolution in the second part in the 18th century. However, we have to remember, that still we are talking about pre-industrial world, where agriculture is the most important sector of the economy.
During this period from 16th to the half of 18th century, economic thinking developed from simple applications of ideas about individuals, households and producers to a more complicated view of the economy as a system with laws and interrelationships of its own.
Mercantilism.
Mercantilism is the name given to the economic literature and practice in Europe