Editing Physiocracy (section)

== Characteristics ==

===Natural order===
{{Disputed|date=November 2019}}

The physiocrats thought there was a "[[Natural order (philosophy)|natural order]]" that allowed human beings to live together. Men did not come together via a somewhat arbitrary "[[social contract]]." Rather, they had to discover the laws of the natural order that would allow individuals to live in society without losing significant freedoms.<ref>{{Cite book|url=https://archive.org/details/historyofeconomi00gideiala|title=A history of economic doctrines from the time of the physiocrats to the present day|last1=Rist|first1=Charles|last2=Gide|first2=Charles|year=1915|publisher=D.C. Heath and Company}}</ref> This concept of natural order had originated in China. The Chinese had believed that there can be good government only when a perfect harmony exists between the "Way of Man" (governmental institutions) and the "Way of Nature" (Quesnay's natural order).<ref name=":2" />

===Individualism and laissez-faire===
{{main|Individualism|Laissez-faire}}
The physiocrats, especially Turgot, believed that self-interest was the motivation for each segment of the economy to play its role. Each individual is best suited to determine what goods they want and what work would provide them with what they want out of life. While a person might labor for the benefit of others, they will work harder for their own benefit; however, each person's needs are being supplied by many other people. The system works best when there is a complementary relationship between one person's needs and another person's desires, and so trade restrictions place an unnatural barrier to achieving one's goals. Laissez-faire was popularized by physiocrat [[Vincent de Gournay]] who is said to have adopted the term from [[François Quesnay]]'s writings on China.<ref name=Baghdiantz/>

===Private property===
None of the theories concerning the value of land could work without strong legal support for the ownership of private property. Combined with the strong sense of individualism, private property becomes a critical component of the Tableau's functioning.
The physiocrats believed in the institution of private property. They saw property as a tree and its branches, as social institutions.
They actually stated that landlords must enjoy 2/5 on the land surpluses. They also advocated that landlords should be given dues, otherwise they would take the land away from the cultivators.

===Diminishing returns===
{{main|Diminishing returns}}
Turgot was one of the first to recognize that "successive applications of the variable input will cause the product to grow, first at an increasing rate, later at a diminishing rate until it reaches a maximum."<ref name="Spiegel 1983 p.189" /> This was a recognition that the productivity gains required to increase national wealth had an ultimate limit, and, therefore, wealth could not be infinite.

===Investment capital===
Both Quesnay and [[Anne Robert Jacques Turgot, Baron de Laune]] recognized that capital was needed by farmers to start the production process, and both were proponents of using some of each year's profits to increase productivity. Capital was also needed to sustain the laborers while they produced their product. Turgot recognizes that there is [[opportunity cost]] and risk involved in using capital for something other than land ownership, and he promotes interest as serving a "strategic function in the economy."<ref name="Spiegel 1983 p.189" />