A comparison of the economic concepts of adam smith and karl marx

Buying clothing, deciding what to eat, or seeking a job — all involve considerations of cost, scarcity, and tradeoffs with other options. Whether or not you think of them as such, these are economic decisions. Now extend that idea to scales beyond your individual transactions.

A comparison of the economic concepts of adam smith and karl marx

There are several ideologies of Marx and Smith that have similar background and scope but at the same time there are others which contrast drastically from each other. The beginnings of both their ideologies and thoughts were based on Classical Economics but somewhere along the way great division and differences occurred.

Although their political thoughts differed, there was a lot of agreement and similarity between their economic thoughts. Both strongly advocated the labor theory of value which is that the more number of hours put into the creation of an object, the more worthy it becomes.

Compare contrast Karl Marx and Adam Smith Essay Example | Graduateway

Although this was strongly refuted later on, it left quite a large impact in the understanding of products and their value. Without expanding markets, there would be no profits and people would be out of jobs. Kal Marx strongly believed that in any capitalist setting, it was always the rich who benefitted from any production while the poor were exploited.

Smith, on the other hand, realized that a free trade economy was the secret to success and productivity of a society. The differences between the political ideologies of both men can be largely attributed to the situations that they encountered in their lives.

He commended the independence that the system allowed to start a business or take any decision to become successful regardless of their class or background.

Smith lived in a world that was run by the Mercantilist system which seemed clearly flawed to him. As opposed to Mercantilism, Capitalism allowed people to live freely and spend and earn as they liked. He argued that competition and outside factors would always stabilize prices. He believed that people would strive harder and work more peacefully knowing that there was a return for their hard work.

He felt that compromising a system to give an upper hand to the less privileged would be unfair. In my opinion, both wanted the best for their societies i. However, the means that each chose to achieve prosperity and success were different and justifiable because of the situation that they had witnessed in their lives.

Marx believed that controlled distribution wealth would ensure this objective whereas Smith disagreed.

A comparison of the economic concepts of adam smith and karl marx

It is astounding how much the current understanding of economy has benefitted from these individuals. On the other hand, the laws of Demand and Supply and the concept of the invisible hand are still of considerable value and importance to this day throughout the world.Throughout this paper, I will compare between Adam Smith and his students, David Ricardo, Karl Marx, and Thomas Malthus.

This comparison will specifically look at aspects of the theory of labor value and optimism of Adam Smith in the eyes of these economists. Apr 20,  · Taking On Adam Smith (and Karl Marx) Image Thomas Piketty’s best-selling new book, “Capital in the Twenty-First Century,” argues income inequality is going to worsen.

Overview Adam Smith and Karl Marx: Capitalism v. Socialism Adam Smith and Karl Marx: Capitalism v.

Economic Models for the Modern World

Tara Workman, John Cook, Pamela Knauer, and Mary Lynn Huie After researching economic systems using The Communist Manifesto, The Wealth of Nations, and informational articles, write a comparative essay that by locating words and phrases.

In conclusion, while both Adam Smith and Karl Marx agreed on a few core ideas, they differed on the method of production of goods and services and distribution of resources. Whereas Karl Marx went so far as suggesting revolution by the proletariat against the bourgeoisie for a more just, equitable society, Adam Smith preferred stability and peace over revolution.

Compare contrast Karl Marx and Adam Smith Essay Karl Marx, one of the most controversial twentieth century figures was the mastermind of the concept of communism as well as a radical revolutionary and philosopher of his time - Compare contrast Karl Marx and Adam Smith Essay introduction.

What are the economic theories of Karl Marx and Adam Smith? Was there something fundamentally different between and in the world that led to Adam Smith's and Karl Marx.

The Contrast between the Views of Karl Marx and Adam Smith