Circuitism is an economic theory that posits that an economy functions like an electrical circuit, and that money is the flow of electricity that drives the entire system. The theory was developed by French economist François Quesnay in the 18th century.

Quesnay believed that the economy could be divided into three classes: the productive class, which generates wealth; the sterile class, which does not generate wealth; and the landed class, which owns the land and collects rent from the productive class. The flow of money between these classes determines the health of the economy.

Circuitism posits that money circulates through the economy in a set path, similar to the way electricity flows through a circuit. It begins with the productive class, who use it to purchase goods and services from the sterile class. The sterile class then uses that money to purchase goods and services from the landed class. Finally, the landed class uses that money to pay rent to the productive class.

This circulation of money keeps the economy moving and growing. If one class has too much money and another class doesn’t have enough, then the economy will stagnate. Quesnay believed that this could be remedied by government intervention, such as increasing taxes on the rich to redistribute wealth to the poor.