Physiocrats are important in the history of economic thought because they represented the first school of economists. ... But the physiocrats realised the importance of various economic activities and their relation. In the physiocratic system all social factors like production and distribution are connected.

Why is physiocracy important?

The physiocrats made a significant contribution in their emphasis on productive work as the source of national wealth. This contrasted with earlier schools, in particular mercantilism, which often focused on the ruler's wealth, accumulation of gold, or the balance of trade.

What was the influence of the physiocrats?

Physiocracy was widely influential, particularly on the work A. R. J. Turgot (1727–81) and Smith. Adam Smith's Wealth of Nations (1776) canvassed the entire field of economics, including the theories of value and distribution, trade and development, public finance, even economic history and the history of economics.