Question

III) Discuss some similarities and differences between the economic ideas of the Mercantilists and the Physiocrats.

Answer 1

Etymologically, physiocracy denoted the "order of nature," and the physiocrats imagined a world in which natural economic and moral rules would play a complete role and in which positive law would be in accordance with natural law. They also depicted a primarily agricultural society and thereby attacked mercantilism not only because of its wealth of economic legislation, but also because of its focus on industry and international exchange. Although mercantilists argued that in order to increase its wealth and influence, each nation would control exchange and production, the physiocrats argued that labour and exchange should be released from all restriction. Again, while mercantilists believed that the essence of riches was coin and bullion, the physiocrats proclaimed that riches consisted exclusively of the products of the soil.

The artificial means of wealth (producing and transporting trade to establish variety of employment) rather than only natural wealth (minerals and soil products)
The need of one man becomes the incentive of another man; the loss of one man is the benefit of another man Adam Smith claimed that "consumption is the ultimate end and aim of all production" where "market interest is almost constantly sacrificed to that of the producer" as mercanlist scheme saw.

"Classical economists expected full job, employment prospects for the poor opened by enhanced exports and decreasing imports Keynes lauded the mercantilist concept as a" contribution to statecra Locke — country must pursue a favourable trade balance if its money stock does not slip behind that of other nations, a result that would have dire consequences. Steuart, the last mercantilist, held on to theories already outdated in his being, but he alleviated the birth pangs of modern philosophy by presenting them in all their vulnerability. Unlike the mercantlist, Smith places no special emphasis on his foreign trade jobs,
Veblen has a mercantilist notion that the advantage of one man is the failure of another man, an utterly unacceptable notion in a setting where rising productivity is the norm.