Adam Smith Vs. Karl Marx

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Adam Smith was a well-known economist and philosopher, during the early eighteenth century. One of the earliest works published in economics was by Adam Smith in the “An Inquiry into the Nature and Causes of the Wealth of Nations”. He believed in a system, where the market should be operated by self- regulation, now he is renowned today as the founding father of modern economics and capitalism. Although a century apart, similarly, Karl Marx also had a very outstanding reputation. As a political philosopher, Marx disapproved of the capitalist system; particularly on the way how production was run. Therefore along with other economists, Karl Marx created communism. Marx’s communism is described to have no class structure and the wealth of production is served to reach the needs of common good. Both Adam Smith and Karl Marx were writing in different socio- economic times, hence it is not surprising that their ideas conflicted with each other. Adam Smith lived through a mercantile system, which he highly opposed therefore the idea of a free market system seemed to be the best solution in a time period before the industrial revolution. Unlike Smith, Marx had personal accounts of the industrial revolution, therefore he would have “anticipated the high- technology, global interests of modern institutions, dangers of consuming non- renewable natural resources and the issue of post industrial unemployment.” Both tried to create a system where everyone could be happy but their views on capitalism as the better political system conflicted. Karl Marx’s and Adam Smith’s views on capitalism differed in terms of the division of labour, competition and the class structure in society. “The trade of the pin- maker: a workman not educated to this business (which the division of labour has rendered a distinct trade), nor acquainted with the use of the machinery employed in it (to the
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