Adam Smith vs. Karl Marx
Both Karl Marx and Adam Smith were greatly respected economists during the 18th and 19th centuries. They both viewed society, the economy and politics in different ways. Smith viewed capitalism and the free market as a necessity to society while Marx believed that the bourgeoisie and the proletariat were the two classes that would constantly be fighting between each other. Marx believes that the government needs to intervene to help the working class and that the class system needs to be taken down completely. Some people still argue about which view is correct, but both Smith’s and Marx’s theories can be seen and compared with business and many other aspects of society today.
One of Smith’s main points in his theory is that the government should have a “laissez-faire” approach to the economy. He says this because Smith believes that competition will lead to thriving business and producers and consumers will put their money back into the economy. He supports his claim by citing the “invisible hand” as a sort of guide for the free market. “The invisible hand” is a metaphor for the actions in a free market that benefits the economy. According to Smith, this invisible hand shows its strength and helps society out when people are using their own personal effort to get to the top and to boost their own wealth in the economy. There are many examples of the invisible hand at work. Businesses are constantly competing with each other to attract customers. This results in one business lowering prices enough to attract consumers. This benefits the consumer because now they can purchase the good or service for a cheaper price and also buy a product that wil...
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...le would have nobody to blame but themselves if their finances or happiness was not where they wanted them to be. With Marxism the people know exactly where to point their fingers and who to blame if society went down.
Overall, Smith seems to have the more prevalent and trusted belief about economics and society today. Capitalism has been seen to create great things and open up so many opportunities for the working class people. If we lived under a Marxist system throughout history, some argue that we would be way behind where we are now in terms of production and technology. Adam Smith’s theory and his belief in social Darwinism has taken the U.S economy to not so great places. However, there has never been a utopia or a perfect economy but Smith was right in assuming that his view on the economy gave everyone the best shot to be prosperous in a cutthroat society.
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