Question

2. Explain the economic philosophy of the Physiocratic school of thought. What did they consider to be the ultimate source of all wealth? Which classes did they think were productive, which ones did they consider unproductive? Why? What were their thoughts on monarchy and democracy? Why did they advocate a single tax on rent? Why? Explain briefly.

Answer 1

Ans a= The Physiocrats believed that the wealth of countries stemmed only from agriculture. Their notions took shape in France & were famous in the 2^nd half of the eighteenth century.

Ans b= In a physiocratic set up, agriculture was given a dominant status due to its essential part in the economic development of a nation. It is the single economic sector that produces surplus produce/ net product.Soil was deemed as final source of wealth

Ans c=. The productive category comprised of the farmers, who plough the land & give the rentals to the landlords.

The unproductive category are those who are occupied in non-farming jobs. Artisans, merchants, domestic servants, governmental employees, doctors, , teachers, etc were a part of this category. However, the physiocrats didn’t deem the sterile category as being useless. It was said to be unproductive as it didn’t yield any net product.

Ans d= In political thinking, the Physiocrats were among the earliest laissez-faire scholars. They demanded total external & internal free trade & enterprise unconstrained by subsidies/ restrictions. By eradicating the restrictions , commerce, faming & the total economy would prosper . They also advocated the functioning of a free market / the natural freedoms of individuals & property. So, we can say that they supported democratic doctrines.

Ans e= The physiocratic concept of tax system is linked with net product. They deemed that just land yielded a surplus, taxations should be paid from the net product. In brief, they supported a single taxation system on agriculture