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Comparing Adam Smith and Karl Marx

analytical Essay
562 words
562 words
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Comparing Adam Smith and Karl Marx

Smith and Marx agree upon the importance of capitalism as unleashing productive powers. Capitalism is born out of the division of labour... that is, it is made possible by dividing jobs up into simple tasks as a way of increasing efficiency. By increasing efficiency, then everyone can produce more than they personally need. The extra produced can go towards the accumulation of capital, (machines, more land, more tools, etc) which will allow for even more increased efficiency and production. Both thought that this increased production was great. But Marx said that capitalism was only one stage... that every country must go through capitalism, to get that increased production, but that capitalism is unstable. It requires expanding markets and will end up creating a large gap between the wealthy and the poor, with more and more people becoming poor. Because of this instability, he thought that it would eventually collapse.

However, here is where they split. Smith thinks that as everyone produces more, they have more to sell (exchange) and ever...

In this essay, the author

  • Compares adam smith and karl marx on the importance of capitalism as unleashing productive powers.
  • Explains that smith thinks that as everyone produces more, they have more to sell (exchange) and everyone will be happier.
  • Explains that marx points out that the means of production are owned by only a small group of the population and most other people don't. the proletariat cannot sell their produce, only their labour-power.
  • Argues that smith and marx agree that capitalism requires ever expanding markets. smith believes that jobs cannot be divided down too much unless the market continues to grow.
  • Analyzes how smith and marx agree that if there are too many people and too little jobs, wages are lowered.
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