1. An economic theory developed in 18th-century France holding that agriculture is the source of all wealth and that land is the primary form of capital.
Usage: historical; economics

Examples

• Physiocracy emerged as a major economic school of thought in France during the 1750s.
• The physiocrats believed that only agricultural production created real value in an economy.
• Unlike mercantilism, physiocracy emphasized the importance of land and farming over trade.
• Adam Smith was influenced by some ideas from physiocracy, though he developed his own economic theories.
• Physiocracy declined in influence after the Industrial Revolution shifted focus to manufacturing and commerce.