Open AccessHISTORY OF ECONOMIC THOUGHT A FORGOTTON SUBJECT: AN APPRAISAL OF PHYSIOCRACY WITH REFERENCE TO INDIA
Author(s) -
Sanjana Saggi
Publication year - 2022
Publication title -
paripex indian journal of research
Language(s) - English
DOI - 10.36106/paripex/5704769
Subject(s) - mercantilism , history of economic thought , schools of economic thought , economics , positive economics , neoclassical economics , social science , sociology , political science , law
History of Economic Thought is different from Economic History and History of Economics.While History of EconomicThought deals with the development of economic ideas,Economic History is a study of the economic development of acountry. On the other hand, History of Economics deals with the science of economics. Even though Economic Historyand History of Economic Thought constitute separate branches of study, they are closely related. Economic ideas aredirectly and indirectly motivated by the economic conditions and environment of the country.Physiocracy is also knownas the “Agricultural System”. Economic thinkers who contributed to the growth and development of Physiocracy havebeen called as Physiocrats.The Physiocrats have been regarded as the founders of economic science because they werethe first to grasp the general principles under-lying the economic phenomena and to evolve a theoretical system.Physiocracy is also remarked as the first school of economic thought. The term Physiocracy means “Rule of Nature”.Physiocracy may be defined as a reaction against Mercantilism and its concepts. The Physiocrats believed that themercantile policies instead of doing any good have done great harm to the nations. So they revolved against themercantile policies.According to Gide and Rist,“Physiocrats must be credited with a foundation of the earliest school ofeconomists in the fullest sense of the term. The entrance of this small group of men into the arena of history is a mostth touching one”.The influential French School of thinkers of the early 18 century was led by “Quesnay and Turgot”.Theybelieved in the existence of natural law which governs the universe.Their emphasis on agriculture has earned for theirsystem of thought, the name agricultural school. The present paper deals with evaluation of “History of EconomicThought a Forgotton subject:An Appraisal of Physiocracy with reference to India”keeping in view the agriculture sectorcontribution towards national income since independence.