The value of Physiocracy in its own time: a critical analysis

Abstract

The value of the physiocratic doctrine is examined with an historical-analytical approach that takes into account both the French reality of the mid 18th century and the internal consideration of the doctrine. Starting from the overwhelming opposition of the French contemporaries, the three areas of the phyisiocrats’ system are critically reviewed: the philosophical-political framework, the theoretical economic analysis and the main maxims of the economic government. We conclude that Physiocracy, together with presenting some analytical advances, diagnosed the French economy inadequately, incurred in outstanding economic errors and proposed, within the political framework of severe “legal despotism”, unfeasible or counterproductive measures. The valuation deserved by phyisiocratic political economy in its own time is, therefore, far from being positive.