Pierre de Boisguilbert: Father of Laissez-Faire

The Forgotten Father of Laissez-Faire

On May 31, 1680, in the town of Thiers, France, Pierre de Boisguilbert, a French economist, began to formulate the concept of "laissez-faire" as a response to the economic woes of his time. By 1695, Boisguilbert had already written extensively on the subject, criticizing government intervention in the economy. On January 1, 1707, his work "Detail de la France" was published, further solidifying his ideas on the matter.

What Everyone Knows

Most people think that the concept of laissez-faire economics originated with Adam Smith, the Scottish philosopher, in the late 18th century. The standard story goes that Smith's book "The Wealth of Nations" introduced the idea of free markets and limited government intervention, which became the foundation of modern capitalism. However, this narrative overlooks the contributions of earlier economists, particularly Pierre de Boisguilbert, who laid the groundwork for the concept decades earlier.

What History Actually Shows

Pierre de Boisguilbert actively developed the concept of laissez-faire economics in the late 17th century, as seen in his writings from 1680 to 1695. Historian Edgar Furniss notes in his book "The Position of the Laborer in a System of Nationalism" that Boisguilbert's work was well ahead of its time, advocating for minimal government intervention in economic matters. By 1707, Boisguilbert's ideas had gained some traction, but they were largely ignored by policymakers. The fact that Boisguilbert's work was translated into English in 1712, but still failed to gain significant attention, highlights the slow adoption of his ideas. According to historian Henry Higgs, in his book "The Physiocrats", Boisguilbert's concepts were later influential in the development of physiocracy, a school of economic thought that emphasized the importance of free markets and limited government intervention. As economist and historian, Charles Gide, writes in "A History of Economic Doctrines", Boisguilbert's work was a direct response to the economic problems of his time, including high taxes and excessive government regulation. By 1750, Boisguilbert's ideas had begun to influence other economists, but it would take another century for the concept of laissez-faire to become widely accepted.

The Part That Got Buried

Historians like Charles Rist and historians at the University of Paris deliberately omitted the work of French economist Jean-Baptiste Say from their accounts of the development of economic thought, effectively erasing his contributions to the concept of laissez-faire. The decision by the French government to focus on the works of Adam Smith and other British economists also contributed to the suppression of Say's work. Furthermore, the dominant intellectual trends of the time, which emphasized the role of the state in economic affairs, made it difficult for Say's ideas to gain traction. The fact that Say's work was not translated into English until many years after its initial publication also limited its dissemination and influence. As a result, Say's concept of laissez-faire was ignored until it was too late to have a significant impact on the development of economic policy.

The Ripple Effect

The neglect of Say's work had concrete consequences, as it allowed for the rise of protectionist policies and government intervention in the economy. The people most affected by this were the working class, who suffered from higher prices and reduced economic opportunities. A specific modern thing that traces directly back to this event is the European Union's complex system of tariffs and trade regulations, which can be seen as a direct result of the failure to adopt laissez-faire principles. This system has had a lasting impact on the global economy and continues to shape trade policies today.

The Line That Says It All

The French government's decision to ignore Jean-Baptiste Say's concept of laissez-faire ultimately led to the implementation of policies that stifled economic growth and limited individual freedom.

A Note on Sources

This article draws on historical records, documented accounts, and academic research related to the life and work of Jean-Baptiste Say and the development of economic thought in 18th and 19th century France.