Last Tuesday (Oct 11th) some of the world’s most influential free-market think-tanks met over dinner at Shepherd’s restaurant in Westminster, London. The occasion was the launch of a new French language libertarian think-tank called the Turgot Institute which will be based in Brussels, but aiming at the Francophone world.
Turgot, an 18th century economist and statesman, is generally credited with coining the expression “laissez-faire, laissez-passer” (there is an alternative claim). His economic reforms, blocked by established interests, were probably the last hope for France of avoiding the carnage of the French Revolution.
The think-tanks represented included: Centre for New Europe (Brussels), Institute for Economic Affairs (UK), Independent Institute, Cato Institute, Foundation for Economic Freedom, and Ludwig von Mises Institute (all US), also one Candian and one Flemish whose names I didn’t catch.
150 years ago this is the sort of gathering that would have launched a Communist group in a European country. More news on this development as it breaks.
The term “laissez-faire, lasissez-passer” (leave alone. let act – at least that is what English only speaking me has been told the saying means) is thought to have come about in opposition to the policies of Colbert under the rule of Louis XIV (Turgot was not alive at the time).
Later various physiocrats (farming obsessed French economists) used the term. Turgot was not a physiocrat (although he shared some of their antistatism – their good side).
Hopefully the new institute will not share Turgot support for a national education system or his idea that people going out into the wilds in America had to be strictly controlled (in case they joined up with the Indians – and raided the East).
However, Turgot was a very great economist who made no major blunders in economic theory (unlike Adam Smith), and was saint of economic policy compared to disgusting Necker. The Swiss Necker gave endless bad policy during the time of Louis XVI (one can not say the rule of Louis XVI as poor Louis had little power over anything).
Necker was against even internal free trade (he supported the literal tarriff around Paris), he covered up the cost of the war with Britain in support of the United States (blameing everything on Court luxury – a lie many were eager to believe). Advised that an Estates General be called, that it be held in Paris and that the Third Estate be given twice the number of representatives of either of the other two estates (anyone with a passing knowledge of French history will know that these three choices sealed the doom of the Monarchy).
When Turgot was forced from office (in the early 1770’s) Louis XVI said (or so I seem to remember being told) “how happy you are, if only I could quit my place”. But it is well to remember that if France had been a democracy Turgot would never have been in office in the first place – the mob preferred Necker.
Paul Marks.