Karl Marx And Classical Economics

Marxism was originally founded by Karl Marx and Frederick Engels in the min 1800’s. Marxism is an economic and political philosophy which explores class struggle between the bourgeois and proletariats. At the core of Marxism, it criticizes capitalism as it exploits workers and can only survive off of exploiting the working class. Marxism promotes Labor Theory of Value, which says workers should receive the true value of a produced good. Laborers create the true value of a good by their “socially necessary needed time” spent on making the commodity which in return only benefits the bourgeois. Once a good is produced, the owners of the factory just take the good for themselves and pay the worker a small wage which is not comparable to the value of the good. This alienates the worker by dehumanizing them and destroys their creativity. According to Marxism, laborers gain their joy by what they produce and when controlled by the factory owners they lose it. In The Labor Theory, Marx also

However, 1776 was the marked date for the birth of Classical Economics. Classical Economics was concerned about economic growth through trade and explaining how the “wealth of nations” was increased. According to Economic Discussio, Classical Economics looked mostly at “output, specialization, and division of labor”. The major idea behind Classical Economics was that markets are self guiding and would regulate themselves by natural laws of production. Adam Smith the grandfather of Classical Economics called this “the invisible hand”. Adam Smith also said “the wealth of any nation was determined not by the gold in the monarch's coffers, but by its national income”. In Classical Economics, income is derived from “the labor of its inhabitants, organized efficiently by the division of labor and the use of accumulated