There is absolutely no doubt that Adam Smith and Karl Marx are two of the most world renowned people in the world with regards to communism and economics. While both share certain similarities between them, the differences between their views overcome these similarities which is turn helps present their philosophies more accurately.
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. 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. 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.Adam Smith Vs Karl Marx Adam Smith and Karl Marx are both economic philosophers their economic theories were similar but differ in certain ways as well.
Both have similarities in their ideology, "Both individuals sought to attain a stable economy and government and to reduce class tensions by ensuring a larger middle class. Adam Smith and Karl Marx are both economic philosophers their economic theories were similar but differ in certain ways as well.
Both have similarities in their ideology, "Both individuals sought to attain a stable economy and government and to reduce class tensions by ensuring a larger middle class. Compare and Contrast Marx and Smith Adam Smith and Karl Marx are both economic philosophers.
Smith’s and Marx’s main interests were both economics, politics. They both base their guess on their interpretations of capitalism. Jan 09, · I was given the assignment to write about the economic theories from Karl Marx and Adam Smith.
Im suppose to compare them. I need some topic starters so i can do this paper. Im not asking for people to write my paper, i Status: Resolved. Jul 15, · Marx believed in the labor theory of value. The value of a good is strictly determined by the amount of labor that produced the good.
Smith considered that idea and concluded it was only valid early in history when only small amounts of land had been tamed and capital had been constructed.
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.