Tableau économique

[1] Quesnay believed that trade and industry were not sources of wealth, and instead in his 1758 manuscript Tableau économique (Economic Table) argued that agricultural surpluses, by flowing through the economy in the form of rent, wages, and purchases were the real economic movers.

The Physiocrats believed that “neither industry nor commerce generates wealth.”[2] A “plausible explanation is that the Physiocrats developed their theory in light of the actual situation of the French economy…”[2] France was an absolute monarchy with the land owners constituting 6-8% of the population and owning 50% of the land.

[3] Given the massive effect of agriculture on France’s economy, it was more likely they would develop an economic model that used it to the king’s advantage.

Second, the basic premise of the Mercantilists is that a country must export more than it imports to gain wealth, but that assumes it has more of a tradeable resource than it needs for internal consumption.

The only good which France had in enough excess to export was food; therefore, international trade based on industrial production would not yield as much wealth.

[4] Quesnay believed “a country should concentrate on manufacturing only to the extent that the local availability of raw materials and suitable labor enabled it to have a cost advantage over its overseas competitors.”[4] Anything above that amount should be purchased through trade.