Question

What is the importance of science (such as the laws of thermodynamics, metallurgy, geography and social norms and even the laws governing digestion, etc.) in the economy theories of physiocracy and mercantilism.

Answer 1

1. MERCANTILISM • The word comes from the Latin word mercari, which means “to run a trade” • It was dominant in Europe from the 16th to the mid 18th century. • It is economic nationalism for the purpose of building a wealthy and powerful
2. PHYSIOCRATES • Physiocracy (from the Greek for “Government of Nature” – Physio = Natural – Crat = rule or Rule of Nature or Natural Law) • Their theories originated in France in mid 18th century
3. Mercantilists: • Trade is zero sum game • Agriculture class was ignored • Major wealth of nation is silver and gold • Government intervention was encouraged • More taxes were imposed on working labor
4. Physiocrats :• Trade is Positive sum game • Agriculture class was encourage • Major wealth of nation is the working class i.e labors • Government intervention was discouraged • Higher tax rate on landlords and land owners