Definitions
- A school of economic thought that emphasizes the importance of natural resources and agriculture in economic development. - Referring to a system of government that is based on the principles of physiocracy. - Talking about an economic theory that advocates for free trade, low taxes, and minimal government intervention in the economy.
- An economic theory that emphasizes the importance of accumulating wealth through trade and commerce. - Referring to a system of government that is based on the principles of mercantilism. - Talking about a policy that promotes exports and restricts imports to maintain a favorable balance of trade.
List of Similarities
- 1Both are economic theories that emerged in Europe during the 16th to 18th centuries.
- 2Both emphasize the importance of economic growth and development.
- 3Both advocate for government intervention in the economy.
- 4Both have influenced the development of modern economic systems.
- 5Both have been criticized for their limitations and negative consequences.
What is the difference?
- 1Focus: Physiocracy emphasizes the importance of natural resources and agriculture, while mercantilism focuses on trade and commerce.
- 2Policy: Physiocracy advocates for free trade, low taxes, and minimal government intervention, while mercantilism promotes exports and restricts imports to maintain a favorable balance of trade.
- 3Goals: Physiocracy aims to increase overall wealth and prosperity, while mercantilism aims to accumulate wealth and power for the state.
- 4Impact: Physiocracy has had a greater influence on modern economic systems, such as capitalism and socialism, while mercantilism has had a more limited impact.
- 5Criticism: Physiocracy has been criticized for its oversimplification of economic systems, while mercantilism has been criticized for its focus on short-term gains and negative impact on other countries.
Remember this!
Physiocracy and mercantilism are two economic theories that emerged in Europe during the 16th to 18th centuries. While both emphasize the importance of economic growth and development, they differ in their focus, policy, goals, impact, and criticism. Physiocracy emphasizes the importance of natural resources and agriculture, advocates for free trade and minimal government intervention, and aims to increase overall wealth and prosperity. Mercantilism focuses on trade and commerce, promotes exports and restricts imports, aims to accumulate wealth and power for the state, and has been criticized for its negative impact on other countries.
