In The Wealth of NationsSmith argued that the most important characteristic of a market economy was that it permitted a rapid growth in productive abilities. Smith claimed that a growing market stimulated a greater " division of labor " i.
Issue LV I - May 2, Karl Marx is one of the most controversial figures of the twentieth century; though he lived in the 19th, his legacy has lived on as one of controversy.
As a fundamental revolutionary and one of the original minds behind communism, he is renowned as a radical and somewhat dangerous political philosopher. Adam Smith is the father of economics as a science.
As a member of the school of classical economic thought, Smith fused economics with moral theory regarding the way man ought to live. These men have together been placed in the school of classical economics, signaling that there are similarities in their ideology.
Politically, however, these men differ greatly. This essay intends to study some of their most poignant theories to discover when and why these men diverged in their political philosophy.
Throughout the years, philosopher-economists have argued various theories, attempting to find the one that will perpetuate the most efficient and lucrative economy. One famous and contested school of thought is Classical Economics.
Adam Smith and Karl Marx are polar opposites in the political-economic spectrum-- proponents of capitalism and socialism, respectively. Classical Economics is a school of thought that emerged during the transition from feudal to capitalist society.
Throughout this transition, economists were met with the task of deciding how the new system would meet the needs of producers and consumers alike. This task was daunting in that the economists had to discover a way in which most consumers, familiar with feudal society— in which barons, bishops, peasants, and other classes of citizens made a living in exchange for working on a fief owned by a member of the noble class-- would now be the owners of their own property and finally possess the freedom of making and acquiring their own living.
Classical economists held various theories regarding natural prices, value theory, and monetary theory that hinged on the new economic dynamic produced by capitalism. Each individual classical economist shared similar thoughts on these topics, with an occasional theoretical variation.
Karl Marx was born in in Trier, Germany. He studied law, history, and philosophy at the universities of Bonn, Berlin, and Jena. He is renowned for his book on economic theory, Das Kapital. As members of the Communist League, Marx and his friend Friedrich Engels authored the Communist Manifesto—which discussed the class struggle and the need for a revolution of the proletariat.
Cars do not pop out of thin air—there is a process by which steel, rubber, durable plastics, glass, and other materials are put together by both machines and people to create a car. In its crudest form, capitalism works in this way: The main point, after the extensive example, is that capitalism can be broken down into two essential parts: Without the production portion, nothing can be consumed.
This law is applicable in everyday life: For Karl Marx, the production portion of Capitalism signaled great trouble. He believed production in Capitalist society worked in a way that the rich factory owner benefited and the poor factory workers lost.
In his manner of reasoning, the Capitalist system was inherently meant to benefit the rich and exploit the poor: This production would be aimed to meet the needs of the individuals in the society.
They produce only by co-operating in a certain way and mutually exchanging their activities. In order to produce, they enter into definite connections and relations with one another and only within these social connections and relations does their action on nature take place. Marx identified the four-part economic process— production, distribution, exchange, and consumption— in this way: Likewise, consumption of the raw material, which loses its natural form and composition by being used up.
The act of production is therefore in all its moments also an act of consumption. In order for an object to be produced, raw materials and resources must be consumed, "consumed" in this case meaning put to use in the act of production; in order for an object to be consumed, it must first be produced.
The cycle is continuous. Marx identified a three-fold relationship between production and consumption. An object is consumed in order to produce something; an object is consumed after it was produced.
Production does not occur unless producers acquire the materials necessary to produce; consumption does not occur unless there is an object to consume.
In order for production to occur, someone must produce. Prior to the industrial revolution, production of goods hinged on work completed by human hands. Today, machines have replaced much of the human capital, but that is not to say that human labor is not currently an important part of production.
Marx acknowledged the primal propensity to produce. As human beings in a society, we actively seek out a way to sustain life, and in doing so, we produce and create. It was his belief that under the Capitalist economic system, laborers were dehumanized and exploited.
He believed that as people labored for multiple hours every day, they became alienated.Adam Smith was born in Scotland in the early s, and is considered the father of modern economics. He attended University in Glasgow, Scotland, and developed the theories that continue to inform modern economic thought.
He died in Karl Marx was in born in . Adam Smith and Karl Marx Modern political economic theory and philosophy can be greatly attributed to the works of two men who seemingly held polar opposite views on the subject.
Adam Smith and Karl Marx are perhaps two of the best known social and economic thinkers in history. Find out more about each man's theory on the economy and capitalism.
The economic concepts that were visualized by Adam Smith and Karl Marx lead to the idea that Canada fits towards both quite well.
Their concepts are reflected quite clearly in the economic situation of Canada, and the theories of both can be applied. The comparison between Karl Marx and Adam Smith is interesting because each man has been placed in the classical school of economic thought, but the former is a champion of communism and the latter a champion of capitalism.
A Comparison of the Economic Philosophies of Adam Smith, John Stuart Mill, and Karl Marx - As far back as man has been on earth, he has been driven towards building a community among his peers.