Turgot, Reflections On The Formation And The Distribution Of Riches by Anne Robert Jacques Turgot

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Anne Robert Jacques Turgot, (1727-1781), commonly known as Turgot, was a French economist and statesman. Originally considered a physiocrat, he is today best remembered as an early advocate for economic liberalism. He is thought to be the first economist to have recognized the law of diminishing marginal returns in agriculture.Turgot's best known work, Reflections on the Formation and Distribution of Riches (R�flexions sur la formation et la distribution des richesses), was written early in the period of his intendancy, ostensibly for the benefit of two young Chinese students. Written in 1766, it appeared in 1769-1770 in Dupont's journal, the Eph�m�rides du citoyen, and was published separately in 1776. Dupont, however, made various alterations in the text, in order to bring it more into accordance with Quesnay's doctrines, which led to a coolness between him and Turgot.In the Reflections, after tracing the origin of commerce, Turgot develops Quesnay's theory that the land is the only source of wealth, and divides society into three classes, the productive or agricultural, the salaried (the classe stipendi�e) or artisan class, and the land-owning class (classe disponible). He also proposes a notable theory of the interest rate. After discussing the evolution of the different systems of cultivation, the nature of exchange and barter, money, and the functions of capital, he sets forth the theory of the imp�t unique, i.e. that only the net product (produit net) of the land should be taxed. In addition he demanded the complete freedom of commerce and industry.

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