ABSTRACT This essay aims at reconsidering the impact of Physiocratic ideas on the United States context during and after the American Revolution, which represented the first turning point concerning the democratic implications of political economy. In the confrontation in the 1790s between Jefferson’s Republicans and Hamilton’s Federalists the early scientific analysis of economics, grounded in the central role of agriculture formulated by Physiocracy, gave strong theoretical validation of the agrarian democracy ideology as an alternative to the British model and (...) contributed to shaping the American identity. The article will investigate this opposition and the economic culture that provides theoretical foundations to two opposed political projects. The reasons and the forms of this impact will be explored through the confrontation between Alexander Hamilton’s Report on Manufactures and George Logan’s series of pamphlets conceived as an orchestrated campaign against the Secretary of the Treasury. The study of Physiocracy beyond Europe and the Old Regime can offer new and divergent outlooks compared to recent studies aiming at questioning the relevance of Physiocratic theory in the Old Regime social and political context and its impact during the French Revolution. (shrink)

Victor Riquetti, marquis de Mirabeau, and Francois Quesnay, Traite de la monarchie, ed. Gino Longhitano , lxxi + 191pp., 110F, ISBN 2 7384 8449 2.

In the second half of the eighteenth century, in France there was an important attempt to renew the reflection on the practices of government of society. Opposing the Colbertist mercantilism of the previous century, the physiocracy is part of this debate by introducing a new way of rationalizing the political society and its practices of government, which develops around a notion of «natural order» which prescribes full freedom for economic subjects. Thanks to the support of the “regime of truth” (...) in the economic science, Quesnay and the physiocrats would propose an innovative form of modern “governmentality”, which in their thought is called despotisme. How can the notion of “despotism” coexist with the claim of maximum liberty for economic actors? The present article intends to answer this question, investigating the relationship that Quesnay and the physiocracy entertain with the birth of liberalism. (shrink)

Physiocracy is still sometimes seen as an oddly archaic programme of agricultural development. The aim of this paper is to show that one of the Physiocrats’ prime concerns was to take the subject of agriculture out of international relations. The fiscal regime that was central to Physiocracy was designed to make every large territorial state self-sufficient and, by doing so, to break the connection between modern great power politics, the international division of labour, and the politics of necessity. (...) From this perspective, the memorandum that Victor Riqueti, marquis de Mirabeau, sent to the Berne Economic Society in 1759, contains an early indication of what, had the Physiocratic programme ever been implemented in full, a world reformed on Physiocratic lines might have looked like. (shrink)

This study examines the botanical and chymical investigations Nehemiah Grew conducted for his magnum opus, The Anatomy of Plants (1682), and explores how they informed his political economic theory, as documented in the unpublished manuscript The Means of a Most Ample Increase of the Wealth and Strength of England (1707). While several scholars have argued that Grew's political economy is best described as mercantilist, this article argues for a much more multifaceted and idiosyncratic reading of Grew's political economy, which aligned (...) with or prefigured not only mercantilism, but also aspects of cameralism, physiocracy, Colbertism, and some of the utopian ideologies of Samuel Hartlib and his circle. By focusing on his knowledge of plant anatomy and plant chymistry, this paper shows that Grew developed a sophisticated understanding of local English ecologies and the natural resource management necessary to maintain a financially strong state. It also reveals an economic thinker deeply skeptical of empire, who was, instead, in favor of national economic self-sufficiency through domestic mineral extraction, agrarian improvement, and a highly regulated market. This article focuses on Grew's development of saline chymistry, his geometric approach to both plant anatomy and geography, his investigations of mineral soils, and his research into tree growth and timber management to demonstrate the deep connections between his botany and his economics. (shrink)

In France the XVIIIth century was characterized by the Enlightenment as a philosophical phenomenon and Physiocracy as an expression of new economic thinking. But the Physiocrats were not merely a school of economic thought; they were also a school of political action. Kings, princes and high public servants were among their pupils. The great French Revolution itself was influenced by their writings. And the force of their work is still not wholly sprent. In order to appreciate the theory and (...) significance of the Physiocracy it is necessary to take into account the circumstances of its time. Physiocracy is a doctrine which esteems that agriculture is of more importance than industry and commerce. In this article following subjects of the physiocratic doctrine are dealt with : the natural order, property and liberty ; the relations between the government and the individual citizen ; the theory of the produit net and the Tableau Economique of François Quesnay. The evaluation also includes the question about the expansion of Physiocracy. Indeed, it had many followers in several countries of Europe and was also the first real School of economic thinking. By its systematic approach, Physiocracy established the economy as a science. All the aspects of Physiocracy which have been mentioned above are intimately bound together and are in several aspects the economic precursor of the French Revolution. (shrink)

Johann August Schlettwein established a reputation during the later eighteenth century as Germany's foremost Physiocrat. Schlettwein's primarily literary reputation was lent authority by his direct participation in two practical Physiocratic experiments: the Markgraf of Baden's trial introduction of a single tax during the the early 1770s, and the creation of an Economic Faculty at the University of Giessen as part of a general financial reform in the state of Hessen-Darmstadt. It is this latter case which will be examined here, where (...) university reform was assigned an important role in the general reconstruction of state finances. But why should the reformers in Darmstadt have lighted upon a maverick figure such as Schlettwein to lead a Faculty which was in turn assigned a leading role in the reform of their state university? And given the apparent failure of Schlettwein to fulfil the hopes placed in him, to what can we attribute his generally lacklustre performance in Giessen? While the first of these questions can be fairly readily answered by considering the choices facing the state government, the second problem is more open: a number of possibilities suggest themselves. The fact that Physiocratic principles conflicted sharply with those governing cameralistic teaching in the German university could have been a significant obstacle; or it could have been that the role assigned to Schlettwein proved impossible, caught between the agenda of Physiocratic reform and that of the state government; or it might of course be that Schlettwein bore personally the major share of the blame. The Physiocratic programme was sweeping in its ambitions; but where it was put into practice (in Baden), or was lent an academic platform (in Giessen), it failed. By examining the reasons behind the failure in Gie?en we can perhaps learn something more of the scope of Physiocracy as a programme of reform in the eighteenth century and thence, indirectly, about the contemporary reception of Physiocratic ideas. (shrink)

Terminally ill in 1776, Hume was relieved from anxieties over Smith's masterwork when it finally reached him on 1 April, and he gave it unstinted praise, though not without offering cogent criticism. The two‐part structure of WN is discussed in context. Books I and II are analytical and identify the principles, chiefly division of labour, which naturally lead to economic growth where the free‐market system, or something close to it, is adopted. Books III to V are historical and evaluative, focused (...) on what legislators, to whom the book is addressed, have done and should do to promote growth. This second part of WN assesses alternatives to the free‐market system, denouncing mercantilism's injudicious restraints and incentives, and Physiocracy's blindness to the benefits of industry and trade. Smith settles for some restrictions on individual economic freedom, to provide resources for society's chief needs identified as defence, justice, public works, and education, and he manifests grave concern about the mental torpor found in workers subjected to extensive division of labour. (shrink)

ABSTRACT It has long been recognised that Adam Smith’s Wealth of Nations (1776) advances a ‘system of natural liberty’ in seeking to account for the ‘nature and causes of the wealth of nations.’ This is not however a theme that is explored or explained in the early sections of the book; in fact, not until Book IV, Ch. ix does Smith give his most expansive account of what he might mean by this term. This paper examines this chapter in detail (...) to determine the limits of his critique in that chapter of the ‘agricultural system’ (of Physiocracy), and why it might be that Smith is so parsimonious in offering a clear account of his central idea. (shrink)

Book IV of Adam Smith's Wealth of Nations concerns two rival economic theories, Mercantilism and Physiocracy. The latter, François Quesnay's system, occupies only the ninth and final chapter, and it begins with a stunning dismissal. Yet, fifteen pages later, Smith praises this theory to the skies. That cries out for explanation. Like Mercantilism, Smith's system emphasizes commerce, whereas Quesnay's is confined to agriculture. But like Physiocracy, Smith's system is built on individual liberty, whereas Mercantilism is one of government (...) control. Despite his initial put-down, Smith is naturally inclined more toward Quesnay's philosophy. And the main thesis of my paper is to suggest one reason for this that has not previously been brought to light, and that can explain Smith's extravagant praise for it. Quesnay employs a Newtonian scientific method different from the one emphasized in Smith's early ‘Astronomy’ treatise, a method Smith first prominently introduced a decade after his meetings with Quesnay, in Wealth of Nations and Smith's eulogy for Hume, and in the sixth edition of his Theory of Moral Sentiments. (shrink)

The founding fathers of neoliberalism are usually imagined as very rational neoclassical economists uninterested in cultural and religious issues. The aim of this paper is to paint a different picture by discussing the ideas of (neo)liberal economists regarding spiritual heritage, with an emphasis on eastern religions. Starting from the existing historiographical debate on the role of Daoist notions in the birth of political economy in 18th-century Europe, as an example of cultural transfer par excellence, argumentation develops into a comparative analysis (...) of philosophical underpinnings of modern laissez-faire liberalism and neoliberalism. The main thesis of the paper is that important epistemological differences between analysed doctrines imply the differences in the attitude of modern economic liberalism towards religion, which is demonstrated via examples of appropriations and translations of eastern heritage. This is a preliminary analysis but with the potential to shed new light on the political theology of contemporary culture and neoliberalism itself. (shrink)

Adam Smith's The Wealth of Nations is regarded by many as the most important text in the history of economics. Jerry Evensky's analysis of this landmark book walks the reader through the five 'Books' of The Wealth of Nations, analyzing Smith's terms and assumptions and how they are developed into statements about economic processes in Book I, his representation of the dynamics of economics systems in Book II, and his empirical case for his model in Book III. With that framework (...) in place, Evensky examines Smith's critique of alternative models, mercantilism and physiocracy, in Book IV, and Smith's presentation of the policy implications of his analysis presented in Book V. This guide highlights the nexus of Smith's economics and his work on ethics and jurisprudence, and in doing so Evensky sets his examination of The Wealth of Nations into a larger, holistic analysis of Smith's moral philosophy. (shrink)

Control over food supply was advanced in the kingdom of France in the Eighteenth century by Physiocrat economists under the seemingly advantageous label of 'freedom of grain trade'. In 1764 these reforms brought about a rise in grain prices and generated an artificial dearth that ruined the poor, some of whom died from malnutrition. The King halted the reform and re-established the old regime of regulated prices; in order to maintain the delicate balance between prices and wages, the monarchy tried (...) to limit speculation in subsistence goods and achieved some success in regulating the provisioning of public markets. Le Mercier de la Riviere concluded that executing these reforms required more effective political control. After 1774 the new king gave the Physiocratic reforms a second chance, reforming property rights and establishing an aristocracy of the landed rich. Again, this led to price hikes and as a result so-called 'popular emotions' erupted. Turgot ordered military intervention to dispel the protesters, marking a first rupture between the monarchy and the people over speculation on subsistence. Turgot's experiment failed and he was dismissed, but the Physiocracy had discovered that the market in subsistence offered new opportunities for economic power under the misleading legitimacy of 'economic laws'. Turgot's followers, Dupont de Nemours and Condorcet, continued to develop this 'theory' that was later translated into a 'scientific language' that ultimately asserted the autonomy of the economic sphere and its alleged independence from ethics and politics. The paper examines the continuity of events through the six great jacqueries and the French Revolution, including the all- important agrarian reform that ensued after 1792. Robespierre's concept of 'popular political economy' is analysed and compared with the notion of unfettered private property rights that lies at the heart of neoliberalism. (shrink)

SummaryIn the Social Contract, Rousseau predicted that Europe would experience a cycle of increasingly intense wars, culminating in invasion from the east: first, Russia would conquer Europe's exhausted and war-torn states; then, Russia would itself become overextended and Europe would ultimately be overrun by the Tartars. The future of the modern state would be a version of the fall of Rome. The present essay provides an explanation of why Rousseau held such apocalyptic views by placing them in the context of (...) projects to reform Europe's political economy in the aftermath of the Seven Years’ War. In 1767, when Catherine the Great was planning a major revision of the Russian legal code, she outlined her goals in a manifesto called the Grand Instruction, key sections of which were derived from Montesquieu's analysis of depopulation of the countryside caused by uncontrolled industrialisation. The Grand Instruction became the subject of a critical exchange between the Physiocrat Le Trosne and Diderot, who, drawing upon Rousseau, was by turns both sympathetic to and sceptical of Physiocracy. This discourse reveals a triangular debate about the possibility of stabilising the international order by imposing a balance between the agricultural and manufacturing sectors of Europe's rapidly growing economies. (shrink)

Gilbert Imlay’s 1793 epistolary novel The Emigrants, which dramatizes several characters’ journey across the Alleghenies to occupy and develop a tract in the Ohio country, features the use of allusions and commonplaces that illuminate this fiction’s provocative campaign to conciliate physiocracy, proto-feminism, and the new philosophy with the expulsion of indigenous people in the region. Imlay uses Pope, Sterne and Thomson to justify and eroticize U.S. expansiveness. The heroine Caroline T—n embodies, especially, the wondering, wonderful vindication of a world-historical (...) land-grab. Comparisons with contemporary stories by Chateaubriand, Blake, Radcliffe, and the Seneca leader known as the Cornplanter highlight ways in which Imlay—partaking of a rhetorical repertoire demonstrably familiar to his peers—mutes history, religion, appropriation, and aggression in favour of erotic appeal, a series of emblematic, excusatory metonymies, and the picturesque language of an early phase of the North American real estate pitch. (shrink)

As décadas de 1750 e 1760 foram decisivas para a formação do que hoje entendemos por ciência econômica. Uma das noções centrais a tomar forma nesse período foi a do mercado como uma ordem espontânea. O artigo defende que essa ideia tem origem no modo como os economistas desse período reformularam a tese da sociabilidade natural dos seres humanos, assumindo o comércio como o local privilegiado de sua operação. Essa tese é o pano de fundo dos debates a propósito da (...) teoria do valor ao longo da década de 1760 e que, em larga medida, caracterizarão a ciência econômica a partir de então. São analisadas as obras de Forbonnais, de Tucker, de Gournay, da fisiocracia e de Turgot. AbstractThe decades of 1750 and 1760 were the founding years of modern economics. One of the central notions to take shape in this period was the idea of the market as a spontaneous order. This paper defends that this idea has its origins in the way the economists of the period reformulated the thesis of the natural sociability of humankind, by assuming commerce as the privileged place of its operations. This thesis offers the background of the 1760’s debate on value that characterizes economics from that time on. The works of Forbonnais, Tucker, Gournay, Physiocracy and Turgot are analised. (shrink)

In the current debate on republicanism the relationship between republicanism and democracy is an aspect whose historical dimension has thus far hardly been investigated. It offers instead also the chance to clear up ambiguities on the opposition between republicanism and liberalism. In this sense, recent research on the radical Enlightenment, on the link between economics and politics, by a new reading of physiocracy as political discourse, and on the foundations of political representation represent some of the most important advances (...) made by historical research over the last few years. This essay wishes to trace these results back to a long line of research on a modern republicanism that had already been investigated many decades ago by a historian of the Enlightenment interested in republican tradition, Franco Venturi, the author of Settecento riformatore and of Utopia and Reform in the Enlightenment, to which John Pocock dedicated the first volume of his recent Barbarism and Religion. By means of a successful integration of three recent essays by John Israel on the uniqueness of Dutch republican discourse, by Richard Whatmore on the economic roots of French republicanism and by Nadia Urbinati on the foundations of representative democracy in Condorcet, it is possible to isolate the characteristics of a democratic republicanism. Among the various threads that have been followed up, the theme of equality has surfaced in various ways in the search for the characteristics of modern republicanism. These highlight the idea of the emergence in the early modern age of an European political culture and of a democratic and egalitarian republicanism that was encouraged by the contribution from various national situations within which it forged its identity, against the model of an Atlantic republicanism. (shrink)

The aim of this essay is to return to the genesis of the American agrarian myth in the eighteenth century, as a path to investigate the origins of the American national identity. This will be done by means of a comprehensive reassessment of St. John de Crèvecoeur, the Norman noble whose name is bound to the success of Letters from an American Farmer. His work contains the origins of the agrarian ideal as a peculiarly American phenomenon, prior to independence and (...) before Republican ideology placed agrarian democracy at its foundations, making the project of agrarian development and democratic participation inseparable one from another. A Frenchman who became American and then, after 25 years, French again, Crèvecoeur represents an ideal lens through which to analyse the hitherto insufficiently explored contribution of French economic culture to the creation of American national identity. As a multi-faceted figure whose richness has been dominated by his image as the author of a best-selling autobiographical novel, Crèvecoeur is here also seen as an agronomist who was no stranger to physiocracy and as a diplomat and French intellectual who always felt profoundly American. It was precisely this attachment to the land, seen as fundamental to the vision of a new and distinct form of peaceful cohabitation and democratic partnership, that became a political theme and an economic development project of the new nation and, as such, was a main plank of the agrarian ideology of Thomas Jefferson's Republicans. (shrink)

Pierre le Pesant Boisguilbert was considered by Marx as one of the founders of classical political economy. His writings contain a large number of concepts and ideas that reappear in the writings of Quesnay, Cantillon and Adam Smith. George Berkeley - a major figure in the history of philosophical idealism - was the author of 'The Querist', a treatise on the nature of Irish under-development and cures for Irish poverty. Baron de Montesquieu - one of the great 18th century polymaths (...) - is author of the masterpiece 'The Spirit of the Laws' (1748) which, while ostensibly a treatise on law, is actually a study of political organization, types of government, national character and the determining ethos of different societies. It enjoyed enormous success in the 18th century and was almost certainly read and studied by Adam Smith. Ferdinando Galiani was a leading critic of physiocracy and a major 18th century proponent of the subjective theory of value. In 1751 he published 'Della Moneta' which contains some notable chapters on monetary theory, and some brilliant pages on the utility theory of value. James Anderson was a Scottish farmer and a prolific author of tracts on the agricultural development of Scotland and the outstanding policy issues of the last quarter of the 18th century. Dugald Stewart was author of 'Account of the Life and Writings of Adam Smith LLD' (1793) which is one of the earliest, extended commentaries on the works of Adam Smith by one who knew him well. (shrink)

Cet article propose une lecture critique du Despotisme de la Chine, un texte riche mais peu commenté, où Quesnay expose explicitement le contenu de sa pensée politique. Par l’analyse de Despotisme de la Chine nous voudrions défendre trois idées qui font sens autour de la représentation de la Chine qui est faite par Quesnay. La première est naturellement de montrer en quoi ce texte est représentatif de la pensée de Quesnay (et, plus largement, de l’école des physiocrates). La deuxième est (...) de souligner que le cas de la Chine, tel qu’il est vu par Quesnay, permet de penser l’économie en tant qu’activité, discipline, ou même science qui se situe au cœur du fondement de la philosophie politique qu’il avance. La troisième est d’indiquer comment la compréhension des logiques économiques d’après Quesnay relève finalement d’une observation intelligente du réel, de lier la loi positive (le politique fondé par l’économique, pour ce qui est alors connu de la Chine) et la loi naturelle (en somme : ce qui est et ce qui doit être). Au cœur de ces trois vues se trouve une réflexion sur ce pays lointain et nul autre (sinon la France). Loin d’être un simple prétexte pour avancer ses arguments, la Chine est surtout une façon de voir, de révéler, de saisir la nature d’une pensée (la physiocratie), d’une discipline (l’économie), et de sa portée (la science et le politique). Codes JEL : A11, A12, B11, K10. (shrink)

Le Supplément au Voyage de Bougainville est le point d’aboutissement d’une critique menée à l’encontre de toute absolutisation de la norme morale, au travers de la confrontation des « codes » civil, religieux et naturel. Les individus, comme les constellations de jugement qu’ils forment, sont passés au crible d’une écriture digressive qui démonte les mécanismes idéologiques de l’agir. Les institutions écclésiales sont mises à mal, cela va de soi, en raison des atteintes qu’elles portent à la liberté individuelle. Pourtant, Diderot (...) dépasse une visée polémique, par trop démonstrative, pour faire de l’écriture dialogique, construite sur deux niveaux, le lieu d’une exploration des conditions d’application de la « loi naturelle » dans le champ de la morale et, partant, du politique. (shrink)

Dans cet article, je reviens sur un constat bien connu, mais jamais parfaitement élucidé : Rousseau n’emploie que très exceptionnellement l’expression « intérêt général », à laquelle il préfère celle d’« intérêt commun ». Je m’efforce d’y apporter une explication nouvelle, en partant d’un réexamen du concept même d’« intérêt » dans son œuvre, auquel il faut prêter un sens assez différent de celui auquel la philosophie politique nous a accoutumés : l’intérêt ne saurait être individuel, il ne saurait s’identifier (...) à l’« avantage », il ne saurait faire l’objet d’un « calcul ». À ce titre, il existe une véritable antinomie entre la notion d’intérêt commun chez Rousseau et celle d’intérêt général qui se formalise chez les physiocrates de façon quasi contemporaine. L’intérêt commun est la base de formation démocratique d’une volonté politiquement orientée, qui prend comme telle le nom de « volonté générale », là où l’intérêt général est le langage normatif dans lequel une décision politique non nécessairement démocratique cherche à fonder sa légitimité en raison. (shrink)

In this article, I offer a new interpretation for Rousseau’s surprisingly spare use of the phrase “general interest” in his works. My starting point is the very notion of interest in his political thought. For Rousseau, interest is not a matter of calculation but of experience; properly speaking, once we are in the state of society, there is nothing like an individual interest because all our interests are shared with somebody else. And our political interest (our sensitivity to society’s general (...) disorders) is shared with all our fellow citizens. In this regard, I bring to light a clear antinomy between the “common interest” in Rousseau’s Social Contract and the “general interest” as conceptualized by the physiocrats a few years later. By “common interest” Rousseau means the material basis for the democratic formation of a general will (that is, a political will) among the citizens, whereas by “general interest” physiocrats mean the normative language in which a non-democratic political decision claims its legitimacy by appealing to reason. (shrink)

Abstract:In this essay I aim to understand how Adam Smith predicted the progress and prosperity of a commercial society and analyze the main attributes of his natural liberty system. I examine the meaning and implications of prosperity in Smith’s thought. Finally, I analyze the role of the division of labor and parsimony in the overall process of societal advancement.