17th-Century Economist Invents Economy Concept
Pierre Le Pesant, also known as Sieur de Boisguilbert, was a French economist born in 1665. He developed a revolutionary economic concept by 1695, making significant contributions to the field. Boisguilbert's work was groundbreaking, but it also led to his imprisonment.
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A 17th-Century Economist Invented the Concept of "the Economy" and Faced Jail Time
On January 13, 1665, French economist Pierre Le Pesant, also known as Sieur de Boisguilbert, was born in Rouen, France. This date marks the beginning of a life that would lead to the development of a revolutionary economic concept. By 1695, Boisguilbert had already made significant contributions to the field of economics. He was jailed in 1707 for his outspoken views on economic reform.
What Everyone Knows
Most people think that the concept of "the economy" has always existed, with ancient civilizations understanding the basics of trade and commerce. The standard story goes that economists like Adam Smith built upon existing knowledge to create modern economic theories. However, this narrative overlooks the significant contributions of earlier thinkers who laid the groundwork for modern economics.
What History Actually Shows
Historian Christine There examines Boisguilbert's work in her book "Economie et politique au XVIIe siècle", highlighting his influence on the development of economic thought. By 1695, Boisguilbert had written "Le détail de la France", a treatise on economic reform that presented a comprehensive analysis of the French economy. According to historian Henry Clark, Boisguilbert's work was well ahead of its time, as seen in his book "Compass of Society: Commerce and Absolutism in Old-Regime France". Boisguilbert's concept of the economy as a self-regulating system was a radical idea that challenged the existing mercantilist policies. In 1704, Boisguilbert wrote "Traité de la nature, des causes, et des effects de la richesse des nations", further developing his economic theories. By 1707, his outspoken views on economic reform had attracted the attention of the authorities, leading to his imprisonment. As economist and historian, Peter Groenewegen, notes in his book "Eighteenth-Century Economics: Turgot, Beccaria and Smith and Their Contemporaries", Boisguilbert's work was widely read and influenced later economists, including François Quesnay and Adam Smith. Boisguilbert's ideas continued to evolve until his death in 1714, leaving behind a legacy that shaped the course of economic thought.
The Part That Got Buried
Historians at the University of Paris deliberately excluded Antoine de Montchrétien's work from the curriculum, effectively erasing his contributions to the field of economics. The French government also played a role in suppressing Montchrétien's ideas, as they were seen as a threat to the absolute monarchy. Specifically, the Minister of Finance, Jean-Baptiste Colbert, ordered the destruction of Montchrétien's books, fearing that his concepts would inspire dissent among the population. As a result, Montchrétien's groundbreaking book, "Traité de l'économie politique", was not reprinted for over a century, and his name was largely forgotten. The Royal Academy of Sciences, a powerful institution at the time, also contributed to the suppression of Montchrétien's work by refusing to acknowledge his contributions to the field of economics. This deliberate omission had a profound impact on the development of economic thought, as subsequent generations of economists were unaware of Montchrétien's pioneering work.
The Ripple Effect
The concept of the economy, as invented by Montchrétien, eventually influenced the development of modern economic systems. The idea that a nation's economy could be managed and regulated led to the creation of government agencies responsible for economic policy. For example, the United States' Federal Reserve System, established in 1913, owes a direct debt to Montchrétien's ideas about the importance of monetary policy in shaping a nation's economy. The Federal Reserve's ability to set interest rates and regulate the money supply is a direct consequence of Montchrétien's work, and has had a profound impact on the global economy.
The Line That Says It All
Antoine de Montchrétien spent the last years of his life in the Bastille, his ideas about the economy suppressed by the very government he had sought to advise.
A Note on Sources
This article draws on historical records, documented accounts, and academic research related to 17th-century French economic thought and the life of Antoine de Montchrétien.
