Physiocracy, or agrarianism, emerged in 18th-century France, advocating that agriculture was the true source of national wealth and promoting the liberalization of grain trade.

 Physiocracy, or agrarianism, emerged in 18th-century France, advocating that agriculture was the true source of national wealth and promoting the liberalization of grain trade. However, this market liberalization caused significant fluctuations in grain prices. In years of good harvest, grain prices plummeted, severely reducing the incomes of small farmers and plunging them into poverty. Conversely, during poor harvests or distribution disruptions, prices soared, making bread difficult to obtain in cities, which led to incidents such as the “Flour War” riots in 1775. The freedom that physiocrats sought through market principles resulted in instability for both farmers and urban dwellers, causing widespread social unrest. Consequently, government intervention and controls on grain prices and distribution were reintroduced to stabilize the situation. While the theories of physiocracy were partially adopted in policy, it became clear in practice that the challenges of society could not be solved by market liberalization alone.