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One was the concrete ideas of Adam Smith and the other was Francois Quesnay and the group of the physiocrats. Quesnay believed all wealth originated with the land and that agriculture alone could increase and multiply wealth (Encarta pg. 4). The physiocrats were partisans of free trade and laissez-faire which is free market economics...
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They believed that the revenue of the state should be raised by a single tax imposed on the land. Adam Smith wrote positively of their ideas and doctrines. An Inquiry to the Nature and Causes of Wealth of Nations was Smith’s first attempt to study the historic growth of industry and capital. Smith saw in the division of labor and the extension of markets introduced almost limitless possibilities for society to expand its wealth through manufacture and trade...
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