Francois Quesnay: Interpreters and Critics Revisited

A bstract . Francois Quesnay is held by many to be the first truly modern economist. In 1750, Quesnay outlined a framework for input-output analysis , perfected by Leontiefin 1930's; he developed a general equilibrium theory perfected in the 20th century by Walras and Keynes ; and Quesnay was among the first to analyse economic growth theory as a function of capital accumulation. As the main representative of the Physiocrats he proclaimed the libertarian motto of laissez faire. But his "libertarian ideas" were quite limited to domestic agricultural trade. The Physiocrats were tied with the aristocratic and autocratic "ancien regime" and Quesnay himself did not promote individual freedom and abhorred class struggle. By proclaiming "laissez faire la nature," the physiocrats believed in the natural order of things, with governments enforcing this natural order. In this order, agriculture is the source of all wealth and everything else is sterile: agricultural development means economic development. The physiocratic philosophy contributed to the 18th century "enlightenment" from the outside; it was too tied with the past to induce radical changes. The Physiocrats were forerunners of much of the economic theory and tools used today; but the economics system they envisioned was not meant to widen welfare or economic freedom.