Earlier quoted context omitted.
This is basically agricultural era thinking peppered with laissez-faire ideology. In 1700-hundreads you could drop average household with some seeds and few tools into the forest and they would go on. If there was village around with 50-100 people their productivity would probably double. Connected to organized state and trade it might increase even more. Today >95% of the value from work comes from the infrastructur…
That being said, in 1700-hundreads they still depended on army. And the interdependence with other households was great too. The was reasons back then for people to bundle themselves into small cities - survival on you own would be quite hard.
In the pre-industrial societies concept of 'fair price' in contrast to 'market price' was very important. Any attempt to increase or lower price to get advantage of distress of others was dealt by the community.