ABSTRACT
This chapter provides a brief description of the Physiocratic school. It discusses Francois Quesnay's notion of surplus and his views on economic growth and agricultural productivity. The chapter shows an analysis of Adam Smith's view of capital accumulation and growth before going on to consider the main criticism advanced by Smith of the 'agricultural system'. It then discusses some price notions advanced by the two authors. For both Quesnay and Smith the accumulation of capital in the more productive sectors is the key to the increase of national wealth. The similarities between the growth theories of Quesnay and Smith also extend partly to their analysis of the crucial role of the agricultural sector. Both Quesnay and Smith, in their different ways, prepared the tools to 'help and direct' society towards wealth and prosperity and, through various means and with several provisos, they believed that the science of the proper government of society could lead to extremely positive consequences.
