ECO428H1 Chapter Notes - Chapter Quesnay: Mercantilism, Money Supply, Conspicuous Consumption
Document Summary
Advances the expenses agricultural work entails and pays revenue of proprietors. Sovereign, land owners, tithe-owners: lives off net product of cultivation paid to them by productive class. Net product is total output of land less the wealth necessary to cover annual advances and maintenance of the wealth employed in cultivation. Everyone who does other work other than agriculture: expense paid by productive class and proprietors. Note proprietors draw their revenue from productive class: assume annual reproduction is 5 milliards. Assume also prices are constant and free competition. Productive class receives advances of 2 milliards. Produce 5 milliards, 2 milliards take form of net product. Sells one milliard to proprietors and one milliard to sterile class. Proprietors receive revenue of 2 million: spend 1 milliard each on purchases from productive and sterile classes. 1 milliard spent on sterile class used by sterile class for subsistence by buying raw materials from productive class. Sterile class receives advances of 1 milliard.
