Enlightenment

Definition

The Enlightenment was an intellectual and philosophical movement that emerged in Europe during the late 17th to the 18th century, emphasizing reason, individualism, and skepticism of traditional authority. This period significantly influenced various fields, including economics, as it encouraged new ways of thinking about society, governance, and human behavior, shaping concepts such as those found in Physiocracy and later economic theories.

5 Must Know Facts For Your Next Test

1. The Enlightenment challenged traditional institutions and beliefs, leading to the questioning of monarchy and the church's authority, which directly influenced economic theories advocating for free markets and individual rights.
2. Key figures of the Enlightenment like John Locke and Jean-Jacques Rousseau contributed ideas about individual rights and the social contract that laid the groundwork for modern democratic thought.
3. Physiocrats emerged during the Enlightenment, emphasizing agriculture as the source of wealth and advocating for minimal government intervention in economic activities.
4. The Tableau Économique, created by François Quesnay, visualized the flow of economic transactions and showcased how productive activities could lead to wealth creation, reflecting Enlightenment ideals.
5. The Enlightenment's emphasis on empirical evidence and rational thought paved the way for subsequent economic theories that focused on scientific approaches to understanding economies.

Review Questions

• How did Enlightenment ideas influence key concepts in Physiocracy?
  • Enlightenment ideas promoted reason and individualism, which resonated with Physiocrats who emphasized agriculture as the foundation of wealth. Their focus on natural laws governing economics reflected Enlightenment thinking, leading to arguments for minimal government interference. This rational approach allowed Physiocrats to advocate for a system that prioritized agricultural productivity as essential for national prosperity.
• Evaluate the impact of Enlightenment thought on later economic theories beyond Physiocracy.
  • Enlightenment thought laid the groundwork for later economic theories by encouraging critical examination of traditional economic practices and beliefs. The focus on rationality and empirical evidence led to developments such as classical economics, where figures like Adam Smith built upon ideas about individual self-interest driving economic prosperity. This shift toward systematic analysis shaped modern economics as a discipline grounded in reasoned inquiry.
• Synthesize how the principles of the Enlightenment resonate with contemporary economic thought today.
  • The principles of the Enlightenment continue to resonate within contemporary economic thought through a persistent emphasis on rationality, individual rights, and scientific inquiry. Modern economics often values free markets and limited government intervention, reflecting Enlightenment ideas about personal freedom and natural laws. Additionally, contemporary debates around social contracts and welfare policies can trace their roots back to Enlightenment discussions on the role of government in protecting individual rights while fostering economic well-being.

Related terms

Rationalism: A philosophical approach that emphasizes reason as the primary source of knowledge and truth, playing a crucial role in Enlightenment thinking.

Social Contract: A theory in political philosophy that suggests individuals consent to form a government for the protection of their rights, a concept developed by Enlightenment thinkers.

Natural Law:

The idea that certain rights are inherent by virtue of human nature and can be understood through reason, influencing Enlightenment thinkers and later economic thought.