ADAM SMITH VS. KARL MARX:
Adam Smith and Karl Marx were both economic philosophers. They both had
economic theories; however, they had a different way on achieving their goals.
Smith and Marx had similarities in their ideology by trying to attain a stable
economy and government. Also, both tried to reduce class tensions by ensuring a
larger middle class. Although they had some similarities, Smith and Marx were
very different people.
Who is Adam Smith?
Adam Smith was a Scottish philosopher who believed in capitalism. He
wrote a book called “The Wealth of Nations," which has an influence on
economics and individual freedom. He believed that people were naturally
selfish, and if they had personal positive influence, they will do whatever
they can to achieve more. He was against the mercantile system. The mercantile
system is an economic system to increase a nation’s wealth by government
regulation of all of the nation’s commercial interest. Smith set the theory of
the invisible hand which related to supply and demand. The more demand,
the market price of a good gets higher, making more producers to start
producing. The new producers’ increases the supply, making the prices reduce.
This constant change of market prices is the basic method by which the
invisible hand of the free market operates.
Who is Karl Marx?
Karl Marx was a German philosopher, who believed in communism. He
believed that people's lives should be controlled by the state with guaranteed
free housing, healthcare, and education. Also, he believed that capitalism will
produce internal tensions. He wrote a book called "Communist Manifest,"
which explains the goals of communism. He argued that class struggles are
the motivating force behind all historical developments. He believed there
would be class struggles between the rich and the poor.
Read more differences between Adam Smith and Karl Marx:
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Read more on Karl Marx:
http://www.infed.org/thinkers/et-marx.htm
http://www.differencebetween.net/business/difference-between-adam-smith-and-karl-marx/
Read more on Karl Marx:
http://www.infed.org/thinkers/et-marx.htm