BON PRIX, PROFIT, AND CAPITAL ACCUMULATION IN QUESNAY

Abstract

The article discusses François Quesnay’s dynamics of capital accumulation. First, we analyze the notion of bon prix to highlight the central analytical role played by profits in Quesnay’s growth dynamics. This leads us to challenge Ronald Meek’s interpretation ([1962] 2003) and to (re)propose Peter Groenewegen’s suggestion (1974 and 1983) that profits are not included in the net product for policy reasons. We also show that profits display features resembling a stable income component such as supervision wages (see Marx [1863] 1963). Second, we contest Steven Pressman’s argument (1994, pp. 143–154) that Quesnay missed the distinction between nominal and real variables by modeling how the farmers’ monetary interest (and profit) initiates the capital accumulation process (see Vaggi 1985), which over time leads to an increase of the (physical) surplus rate and thus of the net product in real terms.

From the accounts of Philosophie rurale to the physiocratic Tableau: François Quesnay as a precursor of national accounting

“…Annual advances represent 21.6% of total advances. 7 For a comparison between profit and net product, see Matteo Menegatti (2018). 8 Other Parts (Mining and fishing) represent activities without farmers; the director of a mine may receive a salary instead of a remuneration.…”